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.