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Question 8 : Do they have relevant experience ?

 

Experience is an essential component in undertaking mega projects. Whether it is building a dam or putting up a skyscraper in Malaysia, foreign expertise is inevitable.

Experience enables the project to avoid pitfalls during construction and commissioning. Certain models are adopted in mega projects such as Build Operate and Transfer.( BOT ). Such an approach enables the promoter with the expertise to be involved in planning, construction, commissioning, operating and handing over to the host agency.

This allows the hardware and software to be fully integrated and functioning up to the desired standard. In this approach the implementation risk essentially shifts to the promoter and builder until the project reaches its desired parameters of performance.

Another approach is to enter into a joint venture ( JV ). But historically, joint ventures have a poor track record. Such ventures often lacked seamless integration between the joint venture partners as each partner looks for immediate benefits from the venture.  This often leads to not partners not giving sufficient time and resources for the JV to grow and mature.

On a smaller scale, implementing consultants are required to show that they have done similar or smaller jobs of similar nature to be pre-qualified for any projects. Skipping the pre-qualification exercise is unique only to circumstances where the promoter brings with it funding and an implementing consultant. If such a situation were to arise, then it would be prudent for the host agency to opt for a Build Operate and Transfer ( BOT ) arrangement to reduce its risks.

 

 

Leow Kok Yuan

Mr Leow is our Managing Partner. He has worked as a consultant in multi-disciplinary development projects financed by the Malaysian Government and international development agencies such as the Asian Development Bank and the World Bank.

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