This presentation was delivered during the 6th Meeting of the OECD Southeast Asia Regional Programme’s Regional Policy Network on Sustainable Infrastructure, which took place on 25-26 April 2022 in Manila, the Philippines. The OECD’s Public Governance Directorate and Environment Directorate teamed up with the OECD Korea Policy Centre to organise the event. The National Economic and Development Authority (NEDA) of the Philippines co-chaired the event alongside the United States, and the Public Private Partnership Centre of the Philippines graciously provided the venue. For more details about the meeting, including the agenda and a short summary record, please visit: https://www.oecd.org/site/sipa/events/sipa-searp-philippines-2022.htm.

1. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
L O A D I N G …
KHAIR US ABDUL - KHALID
2 6 t h APR IL 2 0 2 2
PUBLIC PROCUREMENT AND THE USE OF PPPs TO SUPPORT
FISCAL SUSTAINBILITY AND CLIMATE CONSIDERATION
1

2. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
2
OUTLIN
E
This paper is not to be published in part or in full without the written permission from Unit Kerjasama Awam Swasta (UKAS), Malaysia

3. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
 Risk Transfer – the transfer of risk from the public to private sector.
 Project cost > RM25 million
 Long term contract in nature : more than 7 years
 Partnership agreement – represent co-operation between the public and
private sectors
PPP
CONCEPT
DEFINING PPP VS CONVENTIONAL PROCUREMENT

4. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
M’SIA 10TH PLAN
TARGET:
• USD 36 billion per
annum private
investment up to
2020
• 4.5% - 5.5% GDP
growth per annum
IMPROVE EFFICIENCY &
PRODUCTIVITY
DEVELOPMENT & GROWTH
PROMOTE PRIVATE INVESTMENT
EASE GOVERNMENT BURDEN –
FINANCIAL & ADMINISTRATION
ECONOMIC
TRANSFORMATION
This paper is not to be published in part or in full without the written permission from Unit Kerjasama Awam Swasta (UKAS), Malaysia
PPP
RATIONALE

5. 2019
PPP 2.0
(DECOUPLING)
2010
FACILITATION
FUND
2009
ESTABLISHMENT
OF UKAS
1991
PRIVATISATION
MASTER PLAN
1985
PRIVATISATION
GUIDELINE
1983
PRIVATISATION
POLICY
2006
NEW PFI
MODEL
1981
MALAYSIA INCORPORATED
POLICY
MOVING
FORWARD
PPP 3.0
PPP MALAYSIA AT A GLANCE
Road/Highway Railway Airport
Waste
Management
ICT/
Telecommunications Education
Port Energy Health
Transforming
Societies through
Keluarga Malaysia
and People-First
Development

6. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
6
PPP
MODEL
PUBLIC PRIVATE PARTNERSHIP METHOD
PRIVATISATION
MONETISATION OF PUBLIC
ASSET
SALES OF
PUBLIC EQUITY
OR ASSET OR
CORPORATI’N
LAND SWAP
BUILD
OPERATE
TRANSFER
BUILD
OPERATE
OWN
PRIVATE FINANCE INITIATIVE
BUILD LEASE
TRANSFER
BUILD LEASE
MAINTAIN
TRANSFER
BUILD LEASE
MAINTAIN
OPERATE
TRANSFER
This paper is not to be published in part or in full without the written permission from Unit Kerjasama Awam Swasta (UKAS), Malaysia

7. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
North – South Highway (BOT) Smart Tunnel (BOT) Penang Bridge (BOT)
Federal
Administrative
Centre, Putrajaya
(BLMT)
PPP
MODEL
MODELS PPP PROJECTS IN MALAYSIA
This paper is not to be published in part or in full without the written permission from Unit Kerjasama Awam Swasta (UKAS), Malaysia

8. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
Road Maintenance (Outsourcing)
Ports (BOT)
Razak
Mansion
(Land
swap)
8
PPPMODE
L
This paper is not to be published in part or in full without the written permission from Unit Kerjasama Awam Swasta (UKAS), Malaysia
KL Central
Terminal
(Land Swap)

9. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
Case study - Toll Highways
More than 30 toll highways have been built (2000km)
PPP method: BOT (Build-Operate-Transfer)
Concession period: 20-65 years
Private company build, operate and maintain
Return to private sector: toll charges
Spill-over effects: created new townships and
industrial area
CASE
STUDY

10. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
Do PPP projects integrate environment concerns and have a good
governance? For Highway projects to be approved and constructed:-
Fulfill the overall Highway Master Plan;
EIA Report is compulsory;
Approved by agencies such as Forestry Department, Wildlife Department, Drainage
Department, Department of Environment – integrate CLIMATE AND BIODIVERSITY
concerns;
Horizontal integration – consultation among ministries, Ministry of Work, MoF, Prime
Minister Department on finance, legal framework
Vertical integration – consultation among Federal-State-Local Authority. Land management
is under State Government purview, financial management is under Federal Government.
Submit Social Impact Assessment Report
Conduct Public Hearing
CASE
STUDY

11. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
UKAS
Ministries Other Agencies
PPP Committee Cabinet
State Governments
Planning &
Coordination
Private Sector Initiated
Government-Initiated
Legal Committee
Financial & Technical
Committees
Implementation
Implementation
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This paper is not to be published in part or in full without the written permission from Unit Kerjasama Awam Swasta (UKAS), Malaysia
PPP
STRUCTURE

12. PPP ACHIEVEMENT
Kemas kini: 31 Mac 2022
PPP ACHIEVEMENT 1983-2017
Number of Projects Implemented 754
Number of Jobs Eliminated from Government’s Payroll 113, 487
Savings : Capital Expenditure (RM billion) 203.45
Proceeds fr Sale of Government’s Equity & Assets (RM billion) 6.48
KPI (private investment) for 2016 (RM billion) 50.00
Achievements for 2015 (RM billion) 55.45
Achievements for 2016 and 2017 (RM billion)
RM100

13. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
13
PPP FINANCIAL COMMITMENT
Government Commitment RM (million)
1 The total amount of concession 214,048
2 2022 -2047 103,230
3 2019 expenses 10,177
4 2020 expenses 9,853
5 2021 expenses 11,618

14. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
14
PPP Projects Commitment
1 Operation of Hospitals (BLMT) Availability of charges
Maintenance charges
Refurbishment
2 Operation of Universities (BLMT) Availability of charges
Maintenance charges
Refurbishment
3 Land field/Waste to Energy (BOT) Tipping fees
MODE OF PPP PAYMENT

15. 500
600
700
800
900
1000
1100
1200
1300
1400
2019 2020 2021
0.86%
projection
RM1,170.3b
RM1,268.2b
RM10.2b
RM11.2b
0.87%
actual
RM Billion
Year
PPP COMMITMENT
Source: Adaptation from 2022 Fiscal Outlook and Federal Government Revenue Estimates
FINANCIAL PPP COMMITMENT TO NATIONAL DEBT
0.88%
actual
RM1,333.7b
RM11.5b NATIONAL DEBT
21

16. 16
0
50
100
150
200
250
300
350
2019 2019 2019 2020 2020 2020 2021 2021 2021
PPP
259.8b
56.7b
316.5b
7.7b
4.4b
10.2b
299b
241b
58b
5.7b
3.7%
7.7%
11.2b
3.74%
3.5b
307.5b
11.5b
3.74%
236.5b
0.1b
0.04%
71b
11.4b
16.06%
RM Billion
Budget OE DE
Source : Budget Division MOF 2019, 2020 & 2021
2.2%
1.45%
13.3%
PPP COMMITMENT VS BUDGET, OE & DE

17. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
THE PERCENTAGE OF PPP PROJECTS COMMITMENT AGAINST NATIONAL DEBT AND YEARLY
BUDGET IS STILL CONSIDERED SMALL, HOWEVER
 THE GOVERNMENT IS IN THE PROCESS OF REVIEWING ALL PPP PROJECTS UNDER
NEGOTIATION TO ENSURE FISCAL SUSTAINBILITY
 FOCUS ON USER PAY PROJECTS
 CONSIDER ONLY SELECTIVE PFI PROJECTST TO BE AWARDED
 ESTABLISH A SINGLE WINDOW FOR SELECTION TO ALL DEVELOPMENT PROJECTS INCLUDING
PPP PROJECTS
WAY
FORWARD
THE WAY FORWARD

18. U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
18
THE WAY FORWARD
THERE ARE PLATFORMS TO INTEGRATE ENVIRONMENTAL (CLIMATE AND BIODIVERSITY)
CONCERNS, EVIDENCE OF GOOD GOVERNANCE AND TO SUPPORT FISCAL SUSTAINBLITY FROM
PPP PROJECTS, HOWEVER
• THERE IS A NEED TO DEVELOP MEANINGFUL INDICATORS
• THE NEED TO REVIEW AND BENCHMARKING PPP PROJECTS BASE ON INTERNATIONAL
STANDARD
• THERE IS A NEED OF STRONG LEADERSHIP, POLITICAL WILL, CULTURE CHANGE
THE WAY
FORWARD

19. W W W. U K A S . G O V. M Y
UNIT KERJASAMA AWAM
SWASTA - UKAS
U N I T K E R J A S A M A A W A M S W A S T A
J A B A T A N P E R D A N A M E N T E R I
THANK YOU
19