Criteria in Selecting Key Performance Indicators for Public Private Partnership (PPP) Projects

Abstract

Public Private Partnership (PPP) is conceptualised as a performance-based procurement in which concessionaires are contracted to provide efficient facilities and services to the government. The quality of the facilities and services provided by the concessionaires will be assessed using key performance indicators (KPIs). This is for determining the level of performance against the agreed level of standards as expected by the government. However, most of the PPP projects are currently facing the difficulties in meeting the expectation. It is due to several issues such as lack of methods for measuring the KPIs, the lack of understanding of the KPI implementation, project performance not reflecting the actual performance (physical) on site, the absence of a weightage system on KPIs, and inconsistent of works performance. These shortcomings have led to the difficulty in determining the performance level of the PPP projects. Therefore, this research aims to identify the important criteria for selecting KPIs for PPP project and to determine the implications on the absence of important criteria in selecting PPP project KPIs. Empirical research using case studies via semi-structured interviews technique were conducted within PPP stakeholders. The important criteria were determined from the data obtained from thirty-two (32) semi-structured interviews conducted across six (6) case studies. The results indicate 11 important criteria to be considered when establishing the KPIs for PPP projects. The findings of this research may benefit practitioners in setting the criteria in selecting appropriate KPIs for the implementation of PPP project during operational and maintenance phase.