Bank Pembangunan Malaysia Berhad (BPMB) has been one of the implementing institutions of the Malaysian Government’s “Private Finance Initiative (PFI)”, a concept which involved the transfer of responsibility to finance and manage capital investment and services as well as risk-sharing in relation to public sector assets to the private sector. This initiative was introduced by the Government of Malaysia under its 9th Malaysia Plan 2006.
PFI in the education sector allows private sector participation in the public higher education sector, particularly in the provision of long-term asset-based services. Among many PFI projects was the construction of new campuses for Universiti Teknologi Mara (UiTM), a public university in Malaysia. In line with the national aspiration of providing quality tertiary education, UiTM has embarked on the development and construction of new campuses throughout the country. The development of these campuses through PFI has enabled UiTM to achieve student enrolment totaling to about 170,000 by 2015. Furthermore, by implementing the construction of UiTM campuses through PFI (as against the non-PFI, conventional approach), the Government is able to save about RM100 million (USD 24.1 million) per campus. The progress of the construction of the campuses is monitored by the Government to ensure they are completed as scheduled. Upon expiry of the concession period, the assets and liabilities will be transferred to the Government at no cost.
BPMB has been involved in 16 PFI projects related to the education sector, providing total financing of more than RM 2,306.7 million (USD 555.8 million). Other than UiTM, BPMB has also participated in the financing of PFI projects for other public universities and colleges, e.g.., Universiti Islam Antarabangsa, Universiti Teknikal Malaysia and Politeknik. Of the 16 PFI projects, three (3) are still under construction while the remaining thirteen (13) have been completed to enable those universities and colleges to accommodate more student intake.
The PFI project of the BPMB won the 2016 ADFIAP Outstanding Development Project Award under the Infrastructure Development Category.