The Prime Minister’s speech on the 10th Plan relating to PPP

The Prime Minister's speech on the 10^th Malaysia Plan, in Parliament, 10^th June 2010, relating to PPP

Public-Private Partnership

Smart and effective partnerships between the public and private sectors will be established to drive the economic transformation agenda. This new wave of public-private partnership (PPP) will ensure equitable sharing of risks and returns.

To date, 52 high-impact projects worth 63 billion ringgit have been identified for implementation. These include:

Seven highway projects at an estimated cost of 19 billion ringgit. Among the projects are the West Coast Expressway, Guthrie-Damansara Expressway, Sungai Juru Expressway and Paroi-Senawang-KLIA Expressway;

Two coal electricity generation plants at an estimated cost of 7 billion ringgit; and

Development of the Malaysian Rubber Board‟s land in Sungai Buloh, Selangor covering an area of 3,300 acres at an estimated cost of 10 billion ringgit.

The private sector will also have the opportunity to participate in the development of several projects led by government-linked companies (GLCs). These include projects such as the Kuala Lumpur Strategic Development by 1Malaysia Development Berhad (1MDB) covering the Sungai Besi Airport area, the KL International Financial District in Kuala Lumpur, construction of the liquefied natural gas regasification plant by PETRONAS in Melaka at an estimated cost of 3 billion ringgit as well as two aluminium smelters in SCORE Sarawak with an estimated cost of 18 billion ringgit.

To help the private sector finance these projects, a Facilitation Fund of 20 billion ringgit will be provided under the 10MP. This fund aims to help bridge the private sector viability gap with respect to projects that have a strategic impact and those with huge economic spill over. The fund is expected to attract private sector investments worth at least 200 billion ringgit during the Plan period. Projects that are being considered for financing under this fund include Land Reclamation in Westport in Port Klang, Malaysia Truly Asia Centre in Kuala Lumpur and Senai High Technology Park in Iskandar Malaysia, Johor.

Wassalam