PPP Guidelines:

A Conceptual Framework
Ahmad Zamri Khairuddin
Director
Policy Section
Public-Private Partnership Unit (3PU)
PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT
LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
PRESENTATION OUTLINE
• Development Philosophy
• Planning Horizon
• Major Economic Policies
• PPP-Background
• PPP Concept
• Types of Proposal
• Administrative Machinery
• Role of Government in Promoting PPP
• PPP Projects in Malaysia
• 10th Malaysian Plan
• Conclusion

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
ABOUT 3PU
 Initially 3PU was part of Economic Planning Unit, Prime Minister’s
Department (established in 1961) known as Privatisation Section

 The increasing need for closer public-private relationship in

developing the economy led to the creation of Public Private
Partnership Unit on 22 April 2009.

 The establishment of 3PU backed by the Malaysian Government’s

commitment to promote and support the success of PPP projects, is
testimony to the increasing role of PPP as catalyst in the Malaysian
economic progress.

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
DEVELOPMENT PHILOSOPHY
 through a MIXED ECONOMIC SYSTEM of free enterprise but with
active government support and direction.

 The GOVERNMENT provides the broad thrusts and sets direction for
the whole economy, and ensures the achievements of socio-economic
goals.

 The PRIVATE SECTOR is free to operate given appropriate policy,

institutional and infrastructural support.

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA

4
PLANNING HORIZON
 LONG TERM PLANNING
 Vision 2020, 1991-2020
 First Outline Perspective Plan (OPP1), 1971-1990
 Second Outline Perspective Plan (OPP2), 1991-2000
 Third Outline Perspective Plan (OPP3), 2001-2010
 MEDIUM TERM PLANNING
 Five-year development plans, such as the Ninth Malaysia Plan
(2005-2010)
 Mid-term review (MTR) of the five-year Plans
 SHORT TERM PLANNING
 Annual Budget

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA

5
MAJOR ECONOMIC POLICIES
National Mission Performance and Impact-
2006-2020 Oriented Development

National Vision Building a Resilient and

Policy (NVP) Competitive Nation,
2001-10
National
Development Balanced Development,
1991-2020
Policy (NDP)
New Economic Growth with Equity, 1971-90
Policy (NEP)

Pre-NEP, • Laissez-faire / exports

1957-70 • Economic & rural development
PPP - BACKGROUND
 Malaysia Inc. Policy
 Privatisation Policy introduced in 1983 represented a policy shift from
public sector-led to private sector-led growth
 The policy has been an integral part of the NEP/NDP of the country
• 511 projects privatised
• Created total savings of RM164b savings in capital expenditure

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
PPP CONCEPT

Smart partnership Reasons for

arrangement between establishing such
Characterized by the partnership:
Government and
sharing of
private sector entities investment, risk, • Efficient design,
for the purpose of construction,
responsibility and
providing public operation and
reward between the
infrastructure, maintenance of
partners
community facilities infrastructure
and related services. • Enhanced services

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
MODES OF PPP
Project Category Modes

Build-Operate-Transfer (BOT)
New Projects
Build-Operate-Own (BOO)
Build-Lease-Transfer (BLT)
Build-Lease-Maintain-Transfer (BLMT)
Land Swap

Corporatisation
Existing Projects/
Activities Outright Sale (SOE)
Lease (LOA)
Management Contract (MC)

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
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TYPES OF PROPOSAL
GOVERNMENT INITIATED PRIVATE INITIATED

Proposals identified by Proposals submitted

Ministries/agencies and by private sector
submitted to 3PU

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
ADMINISTRATIVE MACHINERY

Centralized planning and

coordination at 3PU

Negotiation of terms and

conditions by the
PPP/Privatization
Committee

Decentralized
implementation and
monitoring by the Ministries
and State Governments

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
ADMINISTRATIVE MACHINERY

Public-Private Partnership Unit(Chair)

Ministry of Finance

Attorney - General Chambers

Department of Director General of Land

and Mines(Federal Land Commissioner)
Valuation and Property Services
Department
Implementing Ministry/agency

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
ROLE OF GOVERNMENT IN
PROMOTING PPP
Policy advice & technical assistance

Broaden the understanding of the range of partnership options that

exists in the emerging markets.

Facilitate creation of enabling environment

Ensure that both partners adhere and practice robust governance

structures that can withstand independent scrutiny

Capacity enhancement of public sector officials to manage

partnerships
PPP PROJECTS IN MALAYSIA

Kl SENTRAL HIGHWAYS PUTRAJAYA

KLIA SMART TUNNEL RESORTS

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT
LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
10th MALAYSIA PLAN (2011-2015)
 52 projects worth RM62.7 billion identified, among others:
• Integrated Transport Terminal in Gombak
• Privatisation of Solid Waste Management and Public
Cleansing
• IIUM Teaching Hospital, Kuantan
• 7 New Highways
• Development of Women and Children Hospital
 RM20b Facilitation Fund will be established
• as a tipping point to help the private sector finance projects
• bridge viability gap with respect to projects that have a
strategic impact and those with huge economic spill over
• priority on new investment and large scale ventures
• RM5 billion allocated for land acquisition for highway
projects
PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT
LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
PPP: WAY FORWARD
 PPP will continue to be one of
the key instruments in
implementing Government
projects
 New areas such as green
technology, energy-efficient
design will be given priority
 Sectors that generate high
spill-over effects will be main
focus

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
CONCLUSION
• Rapid infrastructure development was
made successful through PPP
• performance delivery improved
through private sector efficiency
• PPP approach is only possible through
smart partnership venture between
private-public sector with high level
commitment from the Government

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA
visit our websites: www.3pu.gov.my

PUBLIC-PRIVATE PARTNERSHIP UNIT, PRIME MINISTER’S DEPARTMENT

LEVEL 14, BLOK MENARA, MENARA USAHAWAN
LOT 2G6, PRESINT 2
62652 PUTRAJAYA