Financing Preference Behaviour for Private Finance Initiative (PFI) Projects

Yati Md Lasa; Norizan Ahmad; Roshana Takim

doi:10.21834/e-bpj.v1i1.188

Authors

Yati Md Lasa Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA (UiTM) Shah Alam, 40450 Selangor, Malaysia
Norizan Ahmad Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA (UiTM) Shah Alam, 40450 Selangor, Malaysia
Roshana Takim Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA (UiTM) Shah Alam, 40450 Selangor, Malaysia

DOI:

https://doi.org/10.21834/e-bpj.v1i1.188

Abstract

Project Financing Initiative (PFI) projects require the private sector to invest an enormous amount of capital for the development of public projects. The private sector has to seek cost-effective financing sources for their survival in the long-term concession. Conventional financing uses widely; however, Islamic financing promises better financing through profit and loss sharing. This paper reviews financing preferences for PFI projects and the factors influencing the choice of funding. The results show that religious perspective, quality of services, financing facilities and reputation are the factors that are expected will influence the financing preference behaviour, either Islamic or conventional finance.

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