Operational Risks for Highway Projects in Malaysia
The Malaysia Highway Authority (MHA) was
established by the Government in 1980 for the purpose of designing,
constructing and maintaining toll highways in Malaysia that include
the North-South Expressway and the Penang Bridge, which were
procured using the publicly-funded traditional procurement. However
following a recession in the mid 80-s, the operations of these tolledhighways
had been privatized to ensure that their operational services
continue through private financing as a result of long-term
concession agreement concurred between the Malaysian Government
and private operators. The change in the contract strategy for
highway projects in Malaysia would have a great tendency to dictate
a significant risk exposure towards the key parties involved,
particularly the Malaysian Government as project principal, unless
operational risks are clearly identified and managed via appropriate
mitigation measures prior to a contract signing.
This research identifies potential operational risks that have a
possibility to occur in highway projects in Malaysia from the
perspective of public sector clients. Since this research focuses on the
operational risks for highway projects in Malaysia, the initial results
acquired from literature review on the operational risks of highway
projects in some Asian countries are then justified by a number of
key individuals from the MHA through interviews. As a result,
among key operational risks that have possibility to occur in the
highway projects in Malaysia include initial toll-tariff decided by the
Government, traffic congestion, change of road network and overloaded
freight transportation, which could cause damage to the road
surface and hence affecting the operation of a particular highway.
[1] Partnerships Victoria, Guideline Material: Risk Allocation and
Contractual Issues
www.partnerships.vic.gov.au/domino/web_notes/PartVic/PVSite.nsf/Fra
meset (Access on 25/11/2005).
[2] Li, B., Akintoye, A., Edwards, P.J. and Hardcastle, C. (2005), Critical
success factors for PPP/ PFI projects in the UK construction industry,
Construction Management & Economics, Volume 23, Issue 5.
[3] Hashim, A. and Ku Hamid, K.H. (2007), Pollutant removal system on
Senai-Desaru Expressway, 9th Joint Technical Conference (JTC) 2007
Penang, Malaysia.
[4] Meizhen, G. (2007), Expressway asset management and risk prevention
- Institutional arrangement and overloaded transport control in China, 9th
Joint Technical Conference (JTC) 2007 Penang, Malaysia.
[5] Cariawan, U. (2007), Risk management system development in PT Jasa
Marga (Persero) Indonesia, 9th Joint Technical Conference (JTC) 2007
Penang, Malaysia
[6] Leerakomsan, S. (2007), Road safety on motorways during construction
in Thailand, 9th Joint Technical Conference (JTC) 2007 Penang,
Malaysia
[7] Wikipedia: Shadow Toll
http://en.wikipedia.org/wiki/Shadow_toll (Access on 28/01/2009)
[1] Partnerships Victoria, Guideline Material: Risk Allocation and
Contractual Issues
www.partnerships.vic.gov.au/domino/web_notes/PartVic/PVSite.nsf/Fra
meset (Access on 25/11/2005).
[2] Li, B., Akintoye, A., Edwards, P.J. and Hardcastle, C. (2005), Critical
success factors for PPP/ PFI projects in the UK construction industry,
Construction Management & Economics, Volume 23, Issue 5.
[3] Hashim, A. and Ku Hamid, K.H. (2007), Pollutant removal system on
Senai-Desaru Expressway, 9th Joint Technical Conference (JTC) 2007
Penang, Malaysia.
[4] Meizhen, G. (2007), Expressway asset management and risk prevention
- Institutional arrangement and overloaded transport control in China, 9th
Joint Technical Conference (JTC) 2007 Penang, Malaysia.
[5] Cariawan, U. (2007), Risk management system development in PT Jasa
Marga (Persero) Indonesia, 9th Joint Technical Conference (JTC) 2007
Penang, Malaysia
[6] Leerakomsan, S. (2007), Road safety on motorways during construction
in Thailand, 9th Joint Technical Conference (JTC) 2007 Penang,
Malaysia
[7] Wikipedia: Shadow Toll
http://en.wikipedia.org/wiki/Shadow_toll (Access on 28/01/2009)
@article{"International Journal of Business, Human and Social Sciences:62705", author = "Farid Ezanee Mohamed Ghazali", title = "Operational Risks for Highway Projects in Malaysia", abstract = "The Malaysia Highway Authority (MHA) was
established by the Government in 1980 for the purpose of designing,
constructing and maintaining toll highways in Malaysia that include
the North-South Expressway and the Penang Bridge, which were
procured using the publicly-funded traditional procurement. However
following a recession in the mid 80-s, the operations of these tolledhighways
had been privatized to ensure that their operational services
continue through private financing as a result of long-term
concession agreement concurred between the Malaysian Government
and private operators. The change in the contract strategy for
highway projects in Malaysia would have a great tendency to dictate
a significant risk exposure towards the key parties involved,
particularly the Malaysian Government as project principal, unless
operational risks are clearly identified and managed via appropriate
mitigation measures prior to a contract signing.
This research identifies potential operational risks that have a
possibility to occur in highway projects in Malaysia from the
perspective of public sector clients. Since this research focuses on the
operational risks for highway projects in Malaysia, the initial results
acquired from literature review on the operational risks of highway
projects in some Asian countries are then justified by a number of
key individuals from the MHA through interviews. As a result,
among key operational risks that have possibility to occur in the
highway projects in Malaysia include initial toll-tariff decided by the
Government, traffic congestion, change of road network and overloaded
freight transportation, which could cause damage to the road
surface and hence affecting the operation of a particular highway.", keywords = "Malaysia, operating highway project, operational
risk.", volume = "3", number = "5", pages = "520-4", }