A comparative review of quantitative VFM methodology for PPP infrastructure project in Indonesia and Australia


Autoria(s): Pangeran, Moch Husnullah; Pribadi, Krishna Suryanto; Susilawati, Connie
Contribuinte(s)

Wang, Yaowu

Yang, Jay

Shen, Geoffrey

Wong, Johnny

Data(s)

01/12/2010

Resumo

The Government of Indonesia (GoI) increasingly relies on the private sector financing to build and operate infrastructures through public private partnership (PPP) schemes. However, PPP does not automatically provide the solution for the financing scheme due to value for money (VFM) issues. The procurement authority must show whether a PPP proposal is the optimal solution that provides best VFM outcome. The paper presents a literature review of comparing quantitative VFM methodology for PPP infrastructure project procurement in Indonesia and Australia. Public Sector Comparator (PSC) is used to assess the potential project VFM quantitatively in Australia. In Indonesia, the PSC has not been applied, where the PPP procurement authority tends to utilize a common project evaluation method that ignores the issues of risk. Unlike the conventional price bid evaluation, the PSC enables a financial comparison including costs/gains and risks. Since the construction of PSC is primarily on risk management approach, it can facilitate risk negotiation processes between the involved parties. The study indicates that the quantitative VFM methodology of PSC is potentially applicable in Indonesia for water supply sector. Various supporting regulations are available that emphasize the importance of VFM and risk management in infrastructure investment. However, the study also reveals a number of challenges that need to be anticipated, such as the need of a more comprehensive PPP policy at both central and local government level, a more specific legal instrument for bidding evaluation method and the issue of institutional capacity development in PPP Units at the local level.

Formato

application/pdf

Identificador

http://eprints.qut.edu.au/39759/

Publicador

China Architecture & Building Press

Relação

http://eprints.qut.edu.au/39759/1/c39759.pdf

http://www.iccrem.com/

Pangeran, Moch Husnullah, Pribadi, Krishna Suryanto, & Susilawati, Connie (2010) A comparative review of quantitative VFM methodology for PPP infrastructure project in Indonesia and Australia. In Wang, Yaowu, Yang, Jay, Shen, Geoffrey, & Wong, Johnny (Eds.) Proceedings of 2010 International Conference On Construction & Real Estate Management, China Architecture & Building Press, Royal on the Park Hotel, Brisbane, pp. 290-295.

Direitos

Copyright 2010 Please consult the authors.

Fonte

Faculty of Built Environment and Engineering; School of Urban Development

Palavras-Chave #090507 Transport Engineering #120201 Building Construction Management and Project Planning #public private partnership #value for money #public sector comparator #infrastructure #procurement #Indonesia #Australia
Tipo

Conference Paper