QUOTE(plouffle0789 @ Jun 26 2025, 08:18 PM)
Why governement cannot just open tender and provide a RM 2.25 billion to build this hospital?
Pasir Gudang also completed 1 mah
Sounds easy, but it’s not that easy.
PFI stands for Private Finance Initiative, which means the private sector funds the project entirely. If you take on the project, you must finance it yourself — the government will not give you any upfront funding.
In other words, you build the project using your own capital. If anything goes wrong — any "wintermelon taufu" mishap — the private sector bears the full risk.
Even if the project progresses or completes, you won’t receive immediate payment from the government. You have to absorb the construction cost and financing burden all the way to the end.
Only after the project is completed will the government lease the building back from you. Let’s say you spend RM 750 million upfront — you can then slowly bill the government over time. But how long will that take? You might still be waiting to recover your capital even after you’re in the grave.
Not many companies are willing to take that kind of risk. So, don’t be naïve in thinking every "cake" comes without risk.
Pasir Gudang was different. That one was Design & Built, government paid to the builder. Not PFI.