Abstract ID: AIC-2017-EIEF-130

Title of Article:Malaysian Public Private Partnership Projects:

Success Definition and Criteria
 Introduction

Infrastructure

Government Scarcity of
Resources

Public Service
 Public Private Partnership

Private Sector
Manages Risk
Construct Facility
Maintain Facility
Transfer to Government
Earns Profit

Government
Transfer all risks
Save Construction cost
Pays rent
Attains ownership after certain time

Ismail, (2013)
 PPP In Malaysian

Privatization
Policy in Prime Minister PPP
Mid 1980s Department (2009)

Ninth Tenth
Malaysian Malaysian
Plan (2006- Plan (2011-
10) 15)
 What is the Problem

1-Delays in Completion
Projects are not Successful 2-Culture of Patronage What is Criteria of Success?
3-Budgeted cash flows
 What is the Problem

Preparation
for Future

Stakeholders’
Satisfaction
What is the
PPP Projects Success
Profile are Different Criteria for
Objectives PPP?

Time
Cost
Quality

Literature Review
(Ika, 2009 & Ahmad et al. 2017)
 Phenomenological Research Method

MEET

Interviews Success Criteria

Hostel
Project

Cresswell (2013) & Groenewald, (2004)

 Two Phenomena
Medical Equipment Enhancement Tenure
(MEET)
Ministry of Health (MOH) has built small health clinics
by using Lease Maintain & Transfer (LMT)
Agreement was signed on 17 April 2014 with Quantum
Medical Supply Sdn. Bhd. (QMS) of worth RM 1.3
billions
IIUM-5000 Bed Hostel (BLMT)
Ministry of Education has built students hostels by
using Build Lease Maintain & Transfer (BLMT)
Sasaran etika sdn bhd (SESB) was awarded BLMT
agreement in 2012 to build 5000-bed hostel for
International Islamic University Malaysia (IIUM)

Existing Biomedical Equipment (EBE) Build New Hostel

New Biomedical Equipment (NBE) Maintain the hostel facility

Purchased Biomedical Equipment (PBE) Process:

Planning
Process: Construction
Planning Maintenance
Registration of Suppliers Transfer to government in 2044
Installation
Maintenance
Transfer to government (2027)

MOH Pays rent for the equipment MOE Pays rent for the hostels
 Findings
PPP Project Success

Stakeholders
Time Cost Quality Profile Objectives
Satisfaction

Planning time Cost of Finance Value for Money Government

Cost of Objectives in
Construction Time SPV Satisfaction
Construction Service according Profile
to Key Performance
Operation Indicators Beneficiaries of
Commencement Cost of Operation
project
Time

Equity Provider

Exclusion of Preparation for future

PPP is one-off transaction with SPV

One project is for specific Demand

The concession of the project is for specific time period

 Conclusion

A PPP project is considered successful if,

• It is completed in budgeted cost at scheduled time

• It delivers the desired service quality to the beneficiaries
• It satisfies the major stakeholders i.e. equity provider,
SPV/Private Partner, government & beneficiaries
• It will able to deliver same service level after the concession
period