Transparency and accountability vital factors in public-private partnership programmes

Some 450 delegates attending a public-private partnership (PPP) workshop in Putrajaya, Selangor, Malaysia, on 24 February 2011, learned about the importance of transparency and accountability in PPP programmes.

The event, organised by the Malaysian Public Private Partnership Unit (3PU) with the support of the Commonwealth Secretariat, attracted participants from the public and private sectors as well as government-linked companies. The objective was to promote PPPs as the main drivers of socio-economic growth by equipping the private sector with the key mechanisms of PPP policies, mechanisms and frameworks. The meeting outlined the roles, guidelines, processes and risk management of PPP programmes.

"PPP can serve as a catalyst in creating opportunities for the public and private sectors in business ventures. Delegates were informed about procedures such as the tendering process, evaluation criteria and awarding of contracts for PPP projects, as well as the timeline for construction and completion,” said Yong Hee Kong, PPP Adviser at the Secretariat.

Malaysia has been developing its PPP programme since 1983 to accelerate its infrastructure development. At the time, the task of implementing various privatisation and PPP projects was entrusted to the Privatisation and PFI Section of the Economic Planning Unit in the Prime Minister’s Department. Realising the need and importance of closer public-private sector collaboration, 3PU was established in the Prime Minister’s Department in April 2009 to spearhead private sector involvement in the country’s national development agenda. To date, 3PU has more than 100 staff, making it one of the largest PPP Units in the world. 3PU has a policy of seconding private sector industry executives to promote the cross-fertilisation of ideas and experiences from private sector expertise. It has also established a US$6 billion Facilitation Fund to provide viability gap grant funding.

3PU's role is to encourage economic growth through increased investment and to foster greater co-operation between the public and private sectors in the planning, implementation and evaluation of privatisation and PPP programmes. The aim is to ensure value for money through cost-effective initiatives and optimum risk distribution while optimising the country’s resources and expertise in the public and private sectors.

The Director-General of 3PU, Dr Ali Hamsa, said: "The establishment of 3PU is a clear testimony to the increasing role of PPP as a catalyst in Malaysia’s economic progress. In tandem with the 10th Malaysian Plan to shift the economy onto a higher plateau, 3PU will work tirelessly to achieve the country’s vision."

The Secretariat has been working with 3PU to develop a PPP Centre of Excellence which will have four strategic drivers, namely the retention of institutional memory through valuable experience and expertise; capacity-building; research and development of PPP models; and nurturing linkages with other countries which are implementing PPP.

"We will be happy to share our experiences and knowledge on PPP with other Commonwealth countries through this PPP Centre of Excellence, a South-South co-operation initiative. In line with this, we will be hosting about 10 PPP policy-makers from Commonwealth countries on a two-week work experience programme at the end of April. PPP has various models which are applied using a tailored approach. It is important to understand the extent to which the correct application of PPP – within the right legal, social, economic and political frameworks – could open the path to greater investment, both local and international in Malaysia’s modernisation," said Dr Hamsa.