Abstract
In Private Finance Initiative (PFI), payment for services is based on pre-determined standards and performance. Thus, Key Performance Indicators (KPIs) have been used to measure this performance. However, lack of an effective KPIs was identified as a core criticism towards the execution of PFI projects. Therefore, the objectives of the research are to determine the importance and challenges of KPIs in measuring this performance. A qualitative approach via semi-structured interview was adopted. The findings discovered that the current KPIs do not meet the criteria and this can lead to the difficulties in measuring the performance of PFI projects. The outcome of this research can serve as a theoretical base for the development of an effective KPIs for PFI projects implementation in Malaysia.
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