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

The Private Finance Initiative (PFI) has been touted as providing value for money (VFM) more than any other form of public procurement. While it cannot be denied that PFI has helped provide infrastructures faster than would have been possible if relying solely on public budget, the VFM argument, which is the most claimed benefit, has continued to be elusive. This study sought the perceptions of stakeholders on the benefits of PFI in infrastructure since its introduction into the public sphere. The target respondents are stakeholders attending two PFI-focused conferences held in Malaysia through survey questionnaires. The findings was consistent with earlier commentators, that among the major benefits achieved so far, VFM fails to rank among the most important benefits of PFI procurement strategy. The delegates ranked the followings: 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 VFM ranked a distant 14th place on the list.