GTP, NKRAs, KPIs and the construction sector

Salam and dear all, In April 2009 the present Government introduced the Government Transformation Programme or GTP. The objectives of the GTP include to make the government's delivery system more accountable and effective in the provision of public services.

1. There are 6 National Key Result Areas (NKRAs) under the GTP i.e. reducing crime, fighting corruption, improving students outcomes, raising the living standards of low-income households, improving rural basic infrastructure and improving urban public transport.
2. The outcomes of the NKRAs are to be measured based on pre-determined Key Performance Indicators (KPIs).
3. In the context of the construction sector, the GTP and specifically the NKRAs, has potential positive implications such as:
4. Fighting corruption. The KPI for fighting corruption is that by 2010 Malaysia's Corruption Perception Index (CPI) score, as compiled by Transparency International (TI), should move from 4.5 to 4.9. In 2009 Malaysia's position on the TI CPI was 56; 1995 = 23. In the context of the construction industry measures put in place to fight corruption includes to reduce leakages in government procurement via disclosure of government tenders on the e-government portal.
5. Improving rural basic infrastructure. Several rural parts of Malaysia remained without modern basic infrastructures such as roads, electricity and treated water. The KPIs for rural infrastructure includes construction of some 7,000 km of new/upgraded roads by 2012, construction of 50,000 new/refurbished homes for the poor by 2012, access to treated water to some 360,000 households by 2012 and access to 24 hour electricity to some 140,000 households by 2012.
6. Under the GTP, using the two NKRAs mentioned above as example, it is expected that the construction sector would become more efficient and with accountability and transparency, and that the allocation targeted for basic infrastructures benefits the construction sector and the economy as Malaysia strives to move out of the current economic downturn.
7. For further details on the GTP Roadmap visit http://www.transformation.gov.my/
8. Malaysia's TI website http://www.transparency.org.my/

Source: various newspapers and the above websites. Wassalam.

PFI. Is Malaysia Ready?

Salam and dear all, Khairuddin (2009) in "Understanding PFI" (Scholar Mind Publishing, pp128-138) reported the outcome of a survey to identify key competencies and to ascertain whether key players of the Malaysian Construction Industry possess those competencies in the provision of PFI services. The outcome of the survey (N=36) include:

• Identified 31 key competencies required in the provision of pfi services. The competencies may be divided into 6 key categories namely: technical, financial, legal, hard and soft pfi skills, contractual and value for money;
• Most QSs, Architects, Financiers, Engineers and Contractors do possess general understanding of pfi; but
• Many "lack competencies" (identified above) to deliver pfi projects.

There is therefore an urgent need for capacity building... training for civil servants and other key players and participants of pfi projects. Wassalam.

Malaysian PPP - Guideline

Salam and dear all, Khairuddin (2009) in "Understanding PFI" (Scholar Mind Publishing, pp142-143) suggested a list of measures in effort to improve understanding and the delivery process of projects procured under PPP and in particular under the PFI approach. Among the measures suggested include establishment of guideline on PPP/PFI. A document entitled "Public Private Partnership (PPP) Guideline" is now available. The document is published by the PPP Unit, Prime Minister Department Putrajaya. Wassalam.

Poor design, materials and workmanship... a comprehensive study is urgently required

Salam and dear all, 1. In June 2009, I posted a note on the collapsed of the newly completed Kuala Trengganu stadium's roof. 2. Now it has been found that the collapse was due to a combination of factors including 'poor design, material, roof not built to specification and poor quality control at construction site'(see Bernama, Jan 7, 2010, quoting the Works Minister Datuk Shaziman Abu Mansor). 3. Why many projects suffer from time and cost over-runs, poor quality (workmanship and material), poor design, etc (see also my postings on the reports prepared by the Auditor General)? 4. What happens to the construction industry and its supply chain? 5. A comprehensive study on the state of the construction industry is urgently required. The study should identify the 'real' problems and their causes and collect data that could be used in developing appropriate and robust strategies to combat the problems. 6. CIDB, university faculties, professional bodies representing consultants, contractors and clients, government departments, etc must collaborate. Wassalam.