Factors Affecting the Operational Performance of Public Private Partnership (PPP) Projects: Cases in Malaysia

The Implementation of Public Private Partnership (PPP) Programme in Malaysia aims to improve the delivery of infrastructure facilities and services for the public sectors. Hence, it is vital to ensure the success of PPP projects by monitoring the projects’ performance to earn value for money (VFM). However, there are several factors influencing the PPP projects’ performance as deliberated by previous scholars. Among these factors are lack of building facility management, lack of performance measurement systems and low monitoring levels which would affect the success of PPP projects especially at the operational stage. Therefore, the purpose of this research is to determine the factors affecting the operational performance of PPP projects in Malaysia. A qualitative approach of semi-structured interviews from selected case studies was adopted. A purposive sampling technique has been chosen which involves PPP experts as a sample population. The data was analysed using Atlas.ti8© qualitative analysis software. From the findings, authors revealed eight factors contributed to the poor projects’ performance namely; defects occurrence, lack of competency among staff or person in charge in PPP, service delivery failure, lack of strategy in assessing performance, lack of monitoring, lack of experience and understanding of PPP among stakeholders, and poor management. The findings of this study may benefit practitioners to further improve the operational performance by eliminating or minimizing factors that affect the successful implementation of PPP projects in Malaysia.