Risk Management in Transport PPP Projects
In the Islamic Countries
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In scrutinizing PPP project proposal, UKAS is also supported by representatives from Ministry
of Finance, Attorney General's Chamber, Economic Planning Unit, Department of Director
General of Lands and Mines, Department of Valuation and Property Services and the Ministry of
Transport and/or its delegated/controlled agencies. Together they form the Public-Private
Partnership Committee or Jawatankuasa Kerjasama Awam Swasta (JKAS), which is chaired by
the Director General of UKAS. The functions of JKAS are as follows:
 To act as the main committee for PPP projects;
 To deliberate on the project proposals submitted through the Steering Committee;
 To make recommendations regarding project proposals for the consideration of the
Cabinet for final approval;
 To finalize negotiation of terms and conditions of the concession agreement with the
successful project proponents.
In what follows, the roles of the different institutions and authorities in the Malaysian PPP
framework are outlined, by presenting the steps taken from project preparation to project
operation and the respective responsibilities. A more detailed picture of the risk management
practices adopted in each of the project life-cycle phase is presented in the appropriate section
of the case study:
 The Transport Ministry (or a specific authority such as Port Klang Authority52) conducts
feasibility studies aimed at assessing whether the project is financially and technically
viable, as well as if the PPP schemewill deliver Value-for-Money as compared to traditional
public procurement. Usually, this task is performed through external private consultants;
 If the results of the feasibility study suggest the adoption of a PPP, the Transport Ministry
proposes the PPP transport project to the Public-Private Partnership Committee (JKAS)
for endorsement, of which UKAS is part before the proposal will be submitted to the
Cabinet for final approval;
 UKAS revises these studies and makes additional analysis aimed at internally identifying
and assessing risks;
 JKAS makes the recommendation whether to proceed with procurement and contracting
as well as the choice of the most appropriate PPP scheme;
 JKAS recommends preferred bidders to the Cabinet for final approval;
 The agreement is finalized between the Ministry and the selected private party and the
contract is signed;
 During the construction phase, Project Management Committee (PMC) is in charge of the
risk monitoring function;
52 In Malaysia, each port has its own Port Authority, which is a government body under the purview of the
Ministry of Transport.