A framework for introducing the private finance initiative in Brunei Darussalam construction industry.

Abstract

The Private Finance Initiative (PFI) is a common, and sometimes preferred, approach to funding public projects without immediate recourse to the public purse, in the construction industry in developed countries throughout the world. It is, also, increasingly gaining popularity among developing countries. Brunei Darussalam is a developing country located on the northern coast of the island of Borneo in South East Asia with an interest in exploring how it can effectively employ the PFI approach to project finance in its construction industry. Against this background, a comprehensive desk study was undertaken together with an analysis of the relevant processes of government in Brunei Darussalam and a framework developed to facilitate the smooth introduction of PFI in the country’s construction industry. The framework was built around four main dimensions: organisation, training, participation and implementation. The framework was evaluated through a survey of managerial level civil servants in Brunei Darussalam’s Ministry of Development. The framework was found to be easy to understand, comprehensive, consistent with government processes and acceptable at all relevant Ministry levels. The framework provides a useful starting point on Brunei Darussalam’s journey towards effective implementation of PFI in its construction industry