The Critical Success Factors For Public-Private Partnership Highway Construction Project in Malaysia

Abstract

The Public-Private Partnership (PPP) approach has been widely used in the development of major infrastructure and building projects all over the world and is considered as one of the effective ways to achieve value-for-money procurement for the public sector. PPP usually requires public authorities and private contractors to collaborate through long-term concession contract where the latter has the obligation to provide the public services desired for the public sector. PPP has recently being introduced in Malaysia as a revised approach towards improving its existing privatization approach in the procurement of public sector projects. Thus, it is essential to determine the critical success factor (CSF) for public sector projects in Malaysia. The Butterworth Outer Ring Road (BORR), which is one of the PPP-oriented infrastructure projects currently operating in Malaysia, has been used as a case study in order to achieve this aim. An extensive interview and structured questionnaires have been used as data acquisition means to elicit the perception of public sector clients in regards to the CSF for the BORR project. As a result, effective communication system, good project governance, responsibility and commitment of public and private sectors, competitive procurement process and ability to delegate authority have been identified as the top five CSF for the BORR expressway in Malaysia.