Public-Private Partnership And Private Finance Initiative For Infrastructure Projects

Author/Editor: Faizul Azli Mohd Rahim, Nurshuhada Zainon, Saipol Bari Abd Karim, Akmal Latiff Ayob

Publisher: UM Press

ISBN: 9789831008942

Weight: 200g

Pages: 116

Year: 2017

Price: RM38

Traditionally, public finance has provided most of the major source of funds for investment in infrastructure projects. However, the challenge of providing infrastructure projects has

led governments worldwide to look at new and innovative alternative methods to finance and manage infrastructure projects. This has led to the participation of the private sector in

the financing and managing of public services and infrastructure. Among the well-established private sector participation is the Public-Private Partnership (PPP).

PPP is increasingly being used to bring together the strengths of both sectors to facilitate the delivery of projects and services. In Malaysia, the government has realized the importance of PPP in economic development since the implementation of privatisation in 1983.

PPP is a partnership that involves transfer to the private sector the risk and responsibility to fund and manage a capital investment package and services including the construction,

management, maintenance, improvement and replacement of public sector assets such as buildings, infrastructure, equipment and other facilities that create a standalone business. They

collaborate on the fundamental of a clearly defined sharing of tasks and risks to achieve benefits of added value and increased efficiency. PPP provides benefit to both the public and private

sectors, especially when it is done based on trust, openness, fairness and mutual respect.

The terms PPP and PFI (Private Finance Initiative) have often being used inter-changeably throughout the world although there are subtle differences between them. In Malaysia, PFI

is a public service delivery type of PPP where the responsibility for providing public services is transferred from the public to the private sector for a considerable period of time. PFI is a means of using private finance and skills to deliver capital investment projects traditionally provided by the public sector.

This book contains numerous insights that will enable the readers to understand and appreciate the theory and practice of PPP/PFI. The contributing authors provide refreshing ways in addressing the understanding of PPP/PFI particularly in infrastructure projects.