ABSTRACT

The concept of combining the Design, Build, Finance and Operate components as a project into a single package under the term PFI was originally introduced in 1992 and modified in 1997 and 1999. PFI differs from privatization in that the public sector retains a substantial interest in the PFI projects, either as the main purchaser of services or as an essential enabler of the project. Public Private Partnership arrangements and privately financed public sector infrastructure projects, including the PFI, have grown in importance in recent years in many countries around the world. In the Ninth Malaysia Plan (2006-2010), Malaysia is entering into the next phase of its privatization process through the introduction of PFI to further streamline the implementation of privatized projects. This study describes the key issues and challenges in implementing PFI in the Malaysian construction industry under the Ninth Malaysia Plan. Based on the interviews conducted with government agencies, a Main Board listed construction companies, and consultancy firms, the results revealed that Malaysia is coming up with its own version of the PFI in that its financing arrangement is different from UK’s PFI. In the Malaysia context, the government provides financing support indirectly through Employees Provident Fund (EPF) that provides Ringgit Malaysia (RM) 20 billion for PFIs. It will be the public sector that takes the financing risks rather than the private sector. Full Paper: [Pdf-1] [Pdf-2]

To cite this paper: Shamsida Saidan Khaderi and Abdul Rashid Abd Aziz (2009), An Overview Of Implementation Private Finance Initiative (Pfi) In Malaysian Construction Industry Fifth International Conference on Construction in the 21st Century (CITC-V)“Collaboration and Integration in Engineering, Management and Technology”, Istanbul, Turkey