Abstract
Public Private Partnerships (PPP) in Malaysia have been inundated by various controversies and criticisms from the very beginning. Many of the constraints that occur in PPP projects is due to the failure in tendering stage. Bidding or tender for a PPP project is usually much more complex than a traditional public-sector project involving the appointment of top advisers and designers at a great fee in the preparation of detailed design, comprehensive planning, extensive bid documentation, and lengthy clarifications. These problems as being the reason behind several high-profile withdrawals during the early PPP tenders, resulting in some preferred bidders being selected by defaults as other competitors withdrew. Base on the above premise, this study attempts to propose PPP tendering process improvement in Malaysian construction industry. This paper aims at providing an overview about literature on tendering process in PPP/PFI. The objectives of the research are to identify and understand the PPP implementation practices in Malaysia; to determine issues and challenges in PPP tendering stage; and to propose PPP tendering improvement. The approach is based on the analysis of the pertinent publications on the theme. Three main interest areas can be found in the literature which is; tendering procedure, issues and challenges, and strategies that could be enhance PPP tendering process in the Malaysian construction industry.
Highlights
In the past couple of decades, the Public-Private Partnership model (PPP) has been used by governments around the world to facilitate investments in public infrastructure
This article extensively reviews the normative literature to provide a comprehensive understanding of PPP tendering process in public infrastructure projects
To understand the PPP bidding process, this paper has discussed the review of the literature
Summary
In the past couple of decades, the Public-Private Partnership model (PPP) has been used by governments around the world to facilitate investments in public infrastructure. A PPP is a way of delivering and funding public infrastructure projects where project risks shared between the public and private sector. The government requires the quality and quantity of the service it necessitates from the private partner. The private partner may be tasked with the design, construction, financing, operation, and management of the infrastructure asset and the delivery of a service to the government or the public using that asset. According to Anders & Schutze [2], public infrastructure projects can be divided into three main categories: Transport infrastructure, for example, tunnels, bridges, ports, roads, and rail systems.; Utilities, for example, power generation, waste management, water, and telecommunications.; Social and service infrastructure, which can be further divided into standard assets, for example, administrative buildings and custom-built assets, for example, schools, universities, hospitals, and major cultural institutions
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