Malaysia PPP seeks international bidders

The Malaysian government has launched a tender for its second waste public-private partnership (PPP), and for the first time is seeking international bidders for the construction and operation of a 1,000-tonne per day capacity waste-to-energy treatment facility, according to a government statement.

Malaysia is seeking bidders from many different fields, including “technology providers, civil engineer contractors, and waste management companies,” particularly those that can group together as consortia. However, international bidders will have to enter into cooperation with Malaysian companies in order to qualify for the PPP. As long as one of the companies has 51 percent Malaysian ownership, the exact structure of the consortium was not further specified.

The size of the PPP was also not specified, as it will depend on the technology solution that the bidders choose. “The Government expects to reach a Value for Money solution for the Project by having an international open tender exercise,” a government spokeswoman told Infrastructure Investor. With Malaysia’s solid waste increasing due to the country’s rapid development, the government believes waste-to-energy is the most efficient way to manage its waste.

The bidding process will start with a pre-qualification round, in which the government will evaluate outline proposals and assess consortias' previous experience in the sector. Interested bidders will have to fill out a questionnaire.

Malaysia has implemented approximately 600 PPPs domestically since the 1980s, in sectors including highways, health and utilities. However, the spokeswoman added that this is the first time the Southeast Asian country has sought international private sector partners for a project, as most of the time the government prefers to handle PPPs internally.

The government has set an April 28 deadline for the submission of pre-qualification bids, and, following the bidding process, expects to award the project in March 2015.