Risk Management in Transport PPP Projects
In the Islamic Countries
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Box 43 Examples of extensions of the concession period
 The original agreement for PLUS highway project singed in 1988 covered a 30-year period.
In 1999, in the context of the toll rate and indebtedness restructuring processes, the
government agreed to extend the concession period by twelve years to 2030. It was later
extended to 2038;
 A 25-year concession contract was originally agreed on in 1993 for the Penang Bridge.
However, in 2009 to accommodate traffic volume an extra lane was built at the concession’s
expense. As a result, the concession period was extended for 3 years and 7 months up to
December 2021.
Follow up
UKAS maintains a database in which it tracks records of all PPPs projects in all sectors ,
including transport (e.g. costs, contract duration, etc.). This database is used as a reference tool,
e.g. in the risk identification exercise.
Despite this internal database, the process of learning from experience mainly consists in
informal information sharing between senior officers within UKAS regarding past projects and
there is no evidence of a systematic approach towards ex-post evaluation.
To enhance internal capacity-building, UKAS organizes also some special training sessions for
its staff, involving also experts such as from theWorld Bank and Asia Development Bank in order
to spread knowledge about PPP models and best practices, as well as how to implement PPPs
efficiently.
5.6.8. Conclusions and recommendations
Conclusions
What emerged from the evidence collected in the Malaysian case study is a decennial
experience in the design and implementation of transport PPPs and the management of the
involved risks. This has been developed also thanks to a strong political and strategic support
over the years from the governments.
The existence of UKAS is key asset. The unit, thanks to the internally developed knowledge
and technical skills, is able to provide effective support to the ministry of transport in the form
of consultancy services and technical assistance for the project selection and implementation.
In particular, the role of UKAS in the phases of contract negotiation (including risk
identification and assessment) emerges as pivotal.
From the analysis of the institutional arrangements in place, it is clear how the core
competencies regarding PPPs are within UKAS. At the same time, this highlights the disparities
in the level of competences between UKAS and the experts within the ministry of transport. This
situation could entail some risks, due to the fact that the transport ministry has a key role in the
monitoring of complex risks potentially arising during the operation phase of the PPP project.