Identification of incomplete contract provision in PFI Contract in ASEAN countries: a case study on Malaysia
Recently, ASEAN countries had called for a more enhanced infrastructure investment to cater the rising economic and social growth in the region. Private Finance Initiative (PFI) has been adopted by many to serve the purpose. However, there is lack of standard procedure for PFI implementation among t...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English English |
| Published: |
2015
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| Online Access: | http://irep.iium.edu.my/48715/ http://irep.iium.edu.my/48715/1/AEC2015_IC.pdf http://irep.iium.edu.my/48715/4/ASEANcommunity2015_cover%26programme-1.pdf |
| Summary: | Recently, ASEAN countries had called for a more enhanced infrastructure investment to cater the rising economic and social growth in the region. Private Finance Initiative (PFI) has been adopted by many to serve the purpose. However, there is lack of standard procedure for PFI implementation among the ASEAN countries. Every country adopted their own procedure. Due to that reason, the ASEAN Leaders had taken the initiative to establish a set of ASEAN Principles for Public-Private Partnership (PPP) Frameworks to improve the efficiency of PPP frameworks in ASEAN region. Among the issue that could be address in the PPP Framework initiative is regarding the provision of PFI concession contract. Literature had identified that there are provisions that are considered incomplete in PFI contract and many PFI contracts are incomplete to some degree. Given that the ASEAN countries are embarking on more PFI contract in the future, the phenomenon of incomplete contract does not give a good impression for the improvement of PPP contract in ASEAN. This paper therefore identify the presence, the characteristic and the implication of incomplete contract based on the study being done on Malaysian PFI concession contract. Input from this paper is considered to be significant towards the ASEAN Principles for PPP Framework initiative in the aspect related to standardization of PFI concession contract.
Keywords: contract; incomplete contract; Private Finance Initiative (PFI); concession contract; transaction cost; bounded rationality
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