Risk Management in Transport PPP Projects
In the Islamic Countries
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 Statistics and surveys: The reform of the PPP unit should be accompanied by a review of
the methodologies adopted to collect data and an effort to fine-tune transport-specific
methodologies. Further, increasing the promotion of the use of statistics and survey by
stakeholders and civil society should be pursued.
 Capacity-building measures: In order to improve the implementation of the regulatory
framework and of the guidelines, a systematic effort towards capacity-building and
appropriate recruiting are needed. Skills in risk management should be ensured not only
at PPP unit level, but also at contracting authority level. In terms of tools, a transport PPP
database should be maintained and updated regularly to track not only general
information associated to PPPs but also risk-related aspects.
 Follow up measures: In order to ensure a fruitful exchange of information on risk
management in PPPs between the Ministry of Transport and the PPP unit, on one side, and
ASEZA and ADC, on the other side, a solid system of communication and cooperation
should be institutionalized, with annual joint meetings focused on sharing good practices
and identifying common challenges.
5.6. Asian cluster, Case study 1: Malaysia
5.6.1. Introduction
Scope of the case study
The scope of this case study is to illustrate the practices currently in place for the management
of the risks associated with PPP projects in the transport sector in Malaysia, with reference to
the entire life-cycle of Public-Private Initiatives and the elements of the conceptual framework
identified at Chapter 3. Existing literature and publicly available information represent the main
sources for the elaboration of this case study. In addition, two phone interviews with Malaysian
stakeholders were carried out in July and August 2019.
Overview of PPPs in the transport sector
Malaysia is a federal constitutional monarchy consisting in 13 states and three federal
territories. Its surface area is approximately 330,800 square kilometers with a population
estimated in 2019 to be around 31.95 million. The majority of the population lives in the coastal
areas and as of 2017 more than 1.8 million people were living in the area of Kuala Lumpur, the
capital and the most populous city of Malaysia. The capital’s population density is very high, with
6,696 inhabitants per square kilometer (TheWorld Population Review). In the last decades, both
economic growth and the growing urban population have required an increased connectivity
and made the role of transportation infrastructures in satisfying mobility needs crucial.
In the period 2010-2017, the number of passengers carried via air transport registered a growth
rate of +251%. In the same timeframe, container port throughput increased by 432%. The
passengers carried by railway grew from 1,220 to 2,028.5 million Passenger – Km. As regards
the motor vehicles in use, the number of passenger cars almost doubled in the decade 2005-
2015 (OICStat).