Assessing the Perceptions of Regional Stakeholders on benefits of PFI for Infrastructure Provision

• Main Authors: Umar, Abdullahi Ahmed, Wan Abdullah Zawawi, Noor Amila, Khamidi, M. Faris, Idrus, Arazi
• Format: Conference or Workshop Item
• Published: 2012
• Subjects: H Social Sciences (General); TH Building construction; TA Engineering (General). Civil engineering (General)
• Online Access: http://eprints.utp.edu.my/8389/1/rp013_ICBER2012-N00028.pdf; http://eprints.utp.edu.my/8389/
• Institution: Universiti Teknologi Petronas

The Private Finance initiative (PFI) has been touted as providing value for money (VFM) than any other form of public procurement. While it cannot be denied that PFI has helped provide infrastructures faster than would have been possible relying solely on public budget, the VFM argument which is the most claimed benefit has continued to be elusive. This study which sought the perceptions of stakeholders attending two (2) PFI-focused conferences held in Malaysia through survey questionnaires, on the benefits of PFI in infrastructure since its introduction into the public sphere found, consistent with earlier commentators, that among the major benefits achieved so far, value for money fails to rank among the most important benefits of PFI procurement strategy. The delegates ranked 1) encouraging a more innovative public sector, 2) Improved business confidence, 3) Contribution to economic growth, 4) Better accountability, 5) increased investment in infrastructure, and 6) helping government spread payment over life of the asset, as the most important benefits derived so far from PFI procurement strategy out of 20 identified benefits, with value for money coming a distant 14th place on the list.