THE adoption of the request for proposal (RFP) approach as a project implementation model to circumvent financial commitment on the Government’s part may not be an ideal method given it is likely to invite corruption.
Instead, founder of IJM Corporation Bhd and Gamuda Bhd Koon Yew Yin suggested that the Government follows the system required by Asian Development Bank (ADB) and World Bank by giving out low interest loans to help poor countries to improve their economy.
“They (ADB and World Bank) insist all the borrowers to follow their guidelines for calling open competitive tenders to avoid corruptions,” Koon who is renowned for his philanthropist work highlighted in is latest blog.
“Firstly, employ a reputable engineering consultant firm with the necessary expertise to produce the design drawings, specifications and bill of quantities for the project. All the contractors must be pre-qualified before they are allowed to submit their tenders.”
Koon was commenting on the specific facilitation fund for infrastructure projects under the public private partnership (PPP) 3.0 model which was unveiled by Prime Minister Datuk Seri Ismail Sabri Yaakob on Sept 27.
Speaking during the tabling of the 12th Malaysian Plan (12MP), Ismail Sabri said the project implementation model which will not involve any financial commitment from the Government but will adopt the RFP approach.
The implementation of the projects under the new model – basic infrastructure and utilities such as roads, rail, water and electricity supply – is expected to be announced in mid-2022, with a special PPP committee chaired by the chief secretary to the government to be established to enable PPP project consultations to be completed within a year.
Subsequently, Koon said all tenders should be opened publicly to reveal their pricing with the contract awarded to the contractor who submitted the lowest price.
“However, contractors are allowed to submit alternative designs provided they are cheaper than the original design,” proposed Koon who is often dubbed the country’s one-man institutional fund in the stock investment circle.
“In this case, the consultant would have to examine the alternative design to make his recommendation. Unless the saving is quite substantial, the consultant should not recommend acceptance of the alternate offer.”
Elaborating further, Koon opined that the consultant should prioritise construction of the shortest route (if this is viable) as this will save cost and users’ travelling time.
“It is essential that the Government must not privatise any of the public essential utilities such as highway, water and electricity supply,” he added. – Oct 4, 2021
