Risk Management in Transport PPP Projects
In the Islamic Countries
201
Today, Malaysia's road network is one of the most comprehensive in Asia and covers a total of
144,403 kilometers, including 1,821 km of expressways. Malaysia has 118 airports; of these, 6
are international.
Several of these infrastructures have been developed in cooperation with the private sector.
Malaysia is the most active country in Southeast Asia in terms of PPP projects. According to the
World Bank database on infrastructural PPPs, Malaysia implemented a total number of 52
transport PPPs from 1985, being the country that implemented the highest number of PPPs
among the OIC Member Countries in the Asian group.
The sector that registered the highest number of PPP is roads (31 PPPs) followed by ports and
railways (11 and 8 PPPs respectively). Also, two airports have been developed in Malaysia
through PPPs.
Out of the 52 PPPs developed in the last three decades in Malaysia, 28 were greenfield projects,
22 brownfield projects, 1 management and lease contract and 1 contract divestitures.
Table 37: PPPs in the transport sector in Malaysia
N/O
Project Name
Type of PPP
Financial
closure year
Concession
Period
Share of
Private
Equity
Responsible
Ministry
1
Malaysia Airports
Holdings Bhd
Partial
1999
50
18
Ministry of
Transport
2
Senai International
Airport
Rehabilitate, operate,
and transfer
2003
30
100
Ministry of
Transport
3
Klang South Port
Rehabilitate, operate,
and transfer
1986
27
Not
Available
Ministry of
Transport
4
Klang North Port
Rehabilitate, operate,
and transfer
1992
21
Not
Available
Ministry of
Transport
5
Lumut Port
Build, operate, and
transfer
1993
20
100
Ministry of
Transport
6
Klang Westport
Rehabilitate, operate,
and transfer
1994
60
90
Ministry of
Transport
7
Johor Port
Rehabilitate, operate,
and transfer
1995
57
51.7
Ministry of
Transport
8
Tanjung Pelepas Port
Build, operate, and
transfer
1995
30
100
Ministry of
Transport
9
Kerteh Liquid Bulk
Terminal
Build, operate, and
transfer
1997
Not Available
60
Ministry of
Transport
10
Kuantan Port
Rehabilitate, operate,
and transfer
1997
60
100
Ministry of
Transport
11
Sabah Ports Sdn Bhd
Build, rehabilitate,
operate, and transfer
2004
30
100
Ministry of
Transport
12
Kemaman Port East
Wharf Privatization
Rehabilitate, operate,
and transfer
2006
60
100
Ministry of
Transport
13
Pengerang Terminal
Phase II
Build, operate, and
transfer
2017
25
50
Ministry of
Transport
14
Sistem Transit Aliran
Ringan Sdn Bhd (STAR-
LRT)
Build, operate, and
transfer
1993
(Cancelled)
60
100
Ministry of
Transport