PPP facilitation fund "adjustments" to bring more impact

KUALA LUMPUR: Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar said the government will make adjustments on the current public-private partnerships (PPP) model, that could include "stretching" the facilitation fund to make it more effective in future.
Speaking to reporters after his keynote address at the International Directors Summit 2015 here yesterday, he said the government is looking at ways to generate more impact from the facilitation fund under the 11th Malaysian Plan (11MP)
"The facilitation fund for high-impact projects is for up to 10% of the gross development cost of that (particular) project… we're looking to stretch that further to get more impact," he said.
According to Wahid, a total of RM11.2 billion facilitation fund has been approved by the government thus far.
"But as we move forward, for the 11MP, perhaps we will modify it (the facilitation fund), this is something we've to work on," he said.
At present, the facilitation fund is in the form of a grant, but Wahid noted that the government is looking at converting it into a sub-equity, quasi-equity or subordinated loan.
"We're going to review and make the facilitation fund even more effective that what we have today," he added.
Other potential adjustments, he said, could be the review of the capital requirements for being a promoter.
"If the project is getting superb returns, then the money can be paid back to the government," he noted.
Meanwhile, Wahid also said the PPP concept will emphasise more on "user-pay" rather than public finance initiatives.
Wahid said a total of 698 PPP projects in various economic sectors have been signed from 1983 to 2014.
"The impact has been significant, with the government saving capital and operating expenditures amounting to RM204.9 billion. Privatisation of government assets has also yielded RM6.5 billion to the government," he said.
On this note, he warned that any effective PPP requires monitoring to ensure its successful implementation.
"We need to see that PPP extends beyond merely getting the job done within a given time frame to getting the job done well for the good of the public," he said.
Wahid stressed that PPP has been an effective method in raising capital and delivering high quality public services.
"It has enabled Malaysians to enjoy the facilities and infrastructure that we have today," he added.