UKAS Website

More organisations opt for digital media for public relations purposes, using a website as a medium to deliver announcements and convey updated facts (Verčič & Tkalac Verčič, 2015). UKAS maintains a website with various items of information for members of the public, the private sector and UKAS personnel. The content is available in two languages, Malay and English, although the latter sometimes incorporates Malay. The researcher has no problem in focusing on content regarding the UKAS procurement process and competition policy. The website covers UKAS history, vision, mission, objectives, organisation strategy, structures, role of UKAS and their customer charter.

Under the menu option MyPartnership is information regarding UKAS operation including the procurement process. The section briefly defines UKAS PPP and explains a model they adopted. It also compares conventional and PPP procurement. Two flow charts associated with the UKAS procurement process are presented, which may create confusion for industry newcomers and potential stakeholders. Their dissimilarity with the flow chart in the guideline may also lead to inconsistencies in practice by UKAS. The first flow chart is shown in Figure 5.11 below.

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Figure 5.11– Stages of UKAS Procurement Process.

Source: UKAS (2015a)

This flow chart is found under the heading end to end process under the MyPartnership menu. The website does not offer any description of the procedures involved in this flow chart. However, observation establishes that this chart is a simplified version of the flowchart in the guideline, discussed above, displaying the stages that a party will undergo with UKAS PPP. Consequently, UKAS offers the reader another diagram under the heading approval process flow chart. Divided into two parts, this is illustrated in Figures 5.12 and 5.13. Part two describes the UKAS framework process in more detail than that in the official UKAS guideline. Figure 5.12 starts with receipt of PPP proposals from ministries or agencies and from the private sector, suggesting that this flow chart is meant for both government-initiated and unsolicited proposals.

After the receipt of a proposal, an assessment of completeness is conducted before the proposal is evaluated for feasibility and bankability under the UKAS PPP programme, although the website does not detail the evaluation mechanism conducted or adopted by UKAS for this assessment. In the event that the proposal is considered acceptable in meeting all of the government’s requirements, it will be tabled before an inter-agency committee comprising Jawatankuasa Awam Swasta (JKAS) and Jawatankuasa Tertinggi Awam Swasta (JTAS). At both levels, the inter-agency committee is only authorised to endorse and make

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recommendations to cabinet and still requires the cabinet minister’s decision. If approved by cabinet, the proposal will go through the phases illustrated in Figure 5.13.

A

Received PPP Proposal from the private sector or PPP application from

Ministries or Agencies

Assess the completeness of the proposal

Complete? Yes

No

Analysing feasibility and bankability of the proposal to be

executed using PPP Get more info

Feasible using PPP? Yes

No Reject proposal

Tabled up the proposal to JKAS/ JTAS

Endorsed? Yes

No Reject proposal

Tabled up the proposal to Minister’s Cabinet Meeting for

Principal Approval

Approved? Yes

No Reject proposal

Figure 5.12 - Approval Process Flow Chart Part (i)

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A

Conduct Value Management Workshop

Recommendation of most qualified SPV to JKAS/JTAS

Evaluation of proposals Prepare Request For Proposal (RFP)

documentation

Invitation for RFP

Recommendation of most qualified SPV to the Minister’s Cabinet Meeting

Negotiation and finalisation of Concession Agreement (CA)

Notice to successful SPV

Endorsement of CA by the Minister’s Cabinet Meeting

Signing of Concession Agreement

Figure 5.13 -Approval Process Flow Chart Part (ii)

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This second flow chart starts with a value management workshop, of which no particulars were given on the website. After the workshop, the diagram indicates the Request for Proposal document preparation and procurement process stages. Yet again, the diagram and other website content offer no explanation of the Request for Proposal invitation bid or the procurement process. Following the procurement process is the proposal evaluation stage, again without explicit rules as to how a proposal is evaluated. Proposals will be scrutinised and discussed in detail in the JKAS and later JTAS. Once more, the inter-agency committee can only recommend to the cabinet, which makes the decision. Once a decision has been reached on the most qualified private partner, the government and selected Special Purpose Vehicle will have multiple discussions and negotiations on the details of the terms and conditions of the whole concession agreement. Agreement between both parties is to be tabled for finalisation by the cabinet. Subject to the approval of the cabinet, the next step is signing the Concession Agreement.

The website has a section describing in detail the role of the inter-agency committee, JKAS and JTAS. JKAS was established to perform the decision-making role for policy matters regarding PPP proposals received, with weekly meetings. The website does not specify under which statutory act or any other regulation JKAS was formed. In describing the role of JKAS in detail, the website lists further responsibilities:

a. Reviewing PPP proposals (including application for facilitation fund) by ministries/agencies and from the private sector;

b. Endorsing PPP proposals for cabinet or the Prime Minister’s final decision; c. Evaluating proposals for government’s facilitation fund;

d. Endorsing shortlisted/qualified companies for Special Purpose Vehicle consideration by the cabinet or Prime Minister;

e. Validating concession agreement terms and conditions (and also for facilitation if applicable) for cabinet decision;

f. Determining PPP project negotiation in detail;

g. Acting as the parent committee for the Project Steering Committee (JPP), the Finance Sub-Committee (JKK) and the Technical Sub-Committee.

The guideline further lists the members of JKAS in detail (Table 5.19). As discussed above, after a matter has been endorsed at JKAS level, every discussion is brought to a higher-level committee called JTAS. The UKAS website lists the role of JTAS as:

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a. Obtaining the principal approval and any decision from the cabinet regarding PPP proposals, including the procurement process;

b. Endorsing high-impact proposals for the award of facilitation funding for the consideration of the Prime Minister;

c. Mediator for disputes regarding PPP proposals (including facilitation fund) between agencies or ministries during negotiations and project implementation.

JKAS Members

Chairman Director General of UKAS

Secretary Director or Principal Assistant Director of Secretariat Subsection, Project Monitoring

and Secretariat Section of UKAS

Permanent Members Representative of Attorney General

Representative of Economic Planning Unit, Prime Minister's Department

Representative of Investment, MKD and Privatisation Division, Ministry of Finance Malaysia

Deputy Director General (Policy), UKAS, JPM Deputy Director General (Development), UKAS, JPM Invited Members

(implementing ministry/agency)

Section Director (project negotiation supervisor), UKAS, or representative Specialist Officer, UKAS,

Certain individuals to give their views and advice on Facilitation Fund projects (Facilitation Fund Meeting only)

Meetings involving

Facilitation Fund Representative of Loans Management, Financial Market and Actuary Division, Ministry of Finance Malaysia Representative of Economic and International Division, Ministry of Finance Malaysia Representative of Finance and Development Division, Prime Minister's Department Representative of Bank Negara Malaysia

Senior Director of PPP Policy and Corridor Development Section Facilitation Fund Section Director

Meetings not Involving

Facilitation Fund Representative of Budget Management Division, Ministry of Finance Malaysia Representative of Government Procurement Division, Ministry of Finance Malaysia Representative of Department of Lands & Minerals Director General

Representative of Department of Valuation and Property Services Director of Technical Section, UKAS, or its representative

Table 5.19 – List of JKAS Members

Source: UKAS (2015c)

The website also lists the members of JTAS. Although JTAS has a similar composition to JKAS, JTAS includes the head of the organisations invited, as shown in Table 5.20. The remaining information under the MyPartnership menu consists of statistics on PPP achievements, major PPP projects undertaken, links to the available guidelines, current tender advertisement and information on the facilitation fund.

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The researcher also discovered relevant information regarding the procurement process adopted by UKAS in the Frequently Asked Questions menu. One question was whether PPP proposals only come from the private sector, and the answer was that two routes are accepted by UKAS: proposals initiated by the government, which originate from the ministries or agencies and are known as solicited proposals, and unsolicited proposals initiated by the private sector.

JTAS Members

Chairman Chief Secretary to the Government of Malaysia

Secretary UKAS

Permanent Members Attorney General

Secretary General of Treasury

Director General Economic Planning Unit, Prime Minister's Department Director General of UKAS,

Director General of Department of Lands & Minerals Director General

Director General of Department of Valuation and Property Services Deputy Director of UKAS

Invited Members Relevant Secretary General of ministries and/or Director General of agencies

Table 5.20 - List of JTAS Members

Source: UKAS (2015d)

The website does not contain any timeline for the stages in the flowchart. Nevertheless, under the menu Client’s Charter, UKAS promises to inform the proposer of the government’s decision within three months of receiving a complete proposal. Within 12 months of the approval, UKAS promises to negotiate and finalise the concession agreement, although this is still subject to non-pending issues such as land matters and approval of the relevant authority.