FACILITATION FUND UNIT KERJASAMA AWAM SWASTA JABATAN PERDANA MENTERI

FACILITATION FUND UNIT KERJASAMA AWAM SWASTA JABATAN PERDANA MENTERI Dato Syed Mohamed Koyakutty Pengarah Kanan Seksyen Dana Mudahcara PPP Unit Kerjasama Awam Swasta Jabatan Perdana Menteri 1/2/2018 UNIT KERJASAMA AWAM SWASTA JABATAN PERDANA MENTERI

FACILITATION FUND MECHANISM AND IMPLEMENTATION UNIT KERJASAMA AWAM SWASTA JABATAN PERDANA MENTERI 1/2/2018

CONTENT Objective Eligibility criteria Terms and references for applicant Sectors that can be considered Exclusions Scope for Facilitation Fund Facilitation Fund policy Facilitation Fund components Mode of Disbursement Issues & Challenges Approved Projects 1/2/2018 UNIT KERJASAMA AWAM SWASTA JABATAN PERDANA MENTERI

to become a catalyst for private investment in the strategic sectors to bridge the viability gap in private sector investment in the implementation of high value projects that have huge spill over effects as well as high strategic impact to the economic development to rationalise the Government s involvement in business and increase participation of the private sector in the economy OBJECTIVES 1/2/2018 UNIT KERJASAMA AWAM SWASTA JABATAN PERDANA MENTERI

ELIGIBILITY CRITERIA FOR FACILITATION FUND 1. NEW INVESTMENT Project should have a significant and strategic impact to the economic (in terms of contribution to GNI, employment opportunities etc.); Project is identified as priority by the Government (National Key Economic Area-NKEA, Malaysian Plan) 1/2/2018

ELIGIBILITY CRITERIA FOR FACILITATION FUND 2. COMMERCIALLY VIABLE Commercially viable and sustainable without further Government support 1/2/2018

1/2/2018 Exceptional - ELIGIBILITY CRITERIA FOR FACILITATION FUND 3. FIXED INVESTMENT General- Value of the investment must at least RM100 million; For health services and logistic sectors, investment must at least RM50 million; For Bumiputera project investment must at least RM2.5 million to RM200 million and to be submitted through TERAJU, JPM; For green initiative, preservation and conservation of environment project investment must at least worth of RM20 million.

ELIGIBILITY CRITERIA FOR FACILITATION FUND 4. ABANDONED PROJECT SPECIFICALLY IN TOURISM AND MIXED DEVELOPMENT Must ensure that the project is free from any legal action To proof that there is injection of new investment into the project 1/2/2018

TERMS AND REFERENCES FOR APPLICANT Registered and incorporated in Malaysia under Companies Act 2016 Owner of the project land or has the right to developed on the project land (supporting documents: Land title, JV Agreement, Power Attorney or lease agreement etc.) Having the right skill and expertise to carry out the project Financially stable and able to secure funding from the financial institution Project has at least been approved for planning from local authority Project must in initial stage or overall progress should not be more than 10% 1/2/2018

SECTORS THAT CAN BE CONSIDERED Tourism Hotels and Resorts Oil and Gas Manufacturing Retails Private College/Universities Private Hospitals Mixed Development Not For Sale Shopping Complex Office Blocks 1/2/2018

EXCLUSIONS Projects in financial/banking sector Projects in incubator or R&D stage Projects which involve mergers & acquisitions Projects that have received Government allocation and/or funded by Government Government procurement projects Investment in foreign countries Projects that are highly dependent on Government support Projects whereby the Government needs to bear a significant portion of the risks Residential projects except for residential develop in green field area (loss leader), PR1MA and PPA1M 1/2/2018

SCOPE OF FACILITATION FUND PRIVATE NEW INVESTMENT Up to 10% of the Gross Development Cost (GDC) of the project or RM200 miliion (whichever is lower) BUMIPUTERA PROJECTS, GREEN INITIATIVES AND PRESERVATION & CONSERVATION OF ENVIRONMENT PROJECTS Up to 15% of the Gross Development Cost (GDC) or RM30 million (whichever is lower) PERUMAHAN RAKYAT 1 MALAYSIA (PRIMA) Up to 10% of the Gross Development Cost (GDC) (whichever is lower) PERUMAHAN PENJAWAT AWAM 1MALAYSIA (PPA1M) Up to 25% of the Gross Development Cost (GDC) (whichever is lower) 1/2/2018

FACILITATION FUND POLICY Generally, the funding of Facilitation Fund is capped base on single customer limit policy or limited to RM200 million per shareholder. 1/2/2018

FACILITATION FUND COMPONENTS Facilitation Fund should be utilized to finance the development of basic infrastructure of a project such as access road, connectivity road, bridges, utilities and etc. Land acquisitions for highway projects 1/2/2018

MODE OF DISBURSEMENT Through Fund Administrator appointed by Government (Bank Pembangunan Malaysia Berhad-BPMB) LUMP SUM REIMBURSABLE Upon completion of the project (Certificate of Completion and Compliance-CCC) PROGRESSIVE Bullets payment can be considered; Project by phases - each phase of development are stand alone and can be operational without overall project completion; Project that directly benefits or having touch-point elemen to the public; Bumiputera investments (2 bullets payments) 1/2/2018

ISSUES & CHALLENGES Failure to comply Condition Precedent in FF agreement Changes in project scope Ammendments to mode of disbursements Third party involments/brokers Incomplete Document 17

YEAR SABAH - FF PROJECTS APPROVED NO OF PROJECTS (2011 2017) TOTAL PRIVATE INVESTMENT (RM mil) TOTAL FF APPROVED (RM mil) 2011 2 753.63 54.95 2012 5 2,391.50 435.58 2013 4 7,559.60 456.18 2014 5 6,797.41 243.02 2015 3 2,160.14 134.69 2016 8 1,329.67 178.75 2017 3 3,177.66 529.88 Jumlah 30 24,169.61 2,033.05

SABAH - FF PROJECTS APPROVED BY SECTORS (2011 2017) SECTOE NO OF PROJECT Tourism 7 Mixed Development 7 PPA1M 6 Residential 2 Office 2 Electricity 2 Manufacturing 1 Oil & Gas Industry 1 Infrastructure 1 Palm Oil Industry 1 TOTAL 30

APPROVED PROJECTS CADANGAN PROJEK PEMBINAAN HOTEL, REPLIKA KAPAL "CHENG HO" DAN SOHO DI AYER KEROH, MELAKA OLEH ALM BUILDERS SDN BHD 20

APPROVED PROJECTS CADANGAN PEMBANGUNAN INDEPENDENT DEEPWATER PETROLEUM TERMINAL DI 21 PENGERANG OLEH PENGERANG INDEPENDENT TERMINALS SDN BHD

APPROVED PROJECTS CADANGAN PEMBANGUNAN INDEPENDENT DEEPWATER PETROLEUM TERMINAL DI 22 PENGERANG OLEH PENGERANG INDEPENDENT TERMINALS SDN BHD

APPROVED PROJECTS CADANGAN PEMBANGUNAN INDEPENDENT DEEPWATER PETROLEUM TERMINAL DI 23 PENGERANG OLEH PENGERANG INDEPENDENT TERMINALS SDN BHD

APPROVED PROJECTS CADANGAN PEMBINAAN UNIVERSITY COLLEGE OF AUTOMOTIVE MALAYSIA (UICAM) 24 OLEH GLENMARIE PAHANG DEVELOPMENT SDN BHD

APPROVED PROJECTS CADANGAN PEMBANGUNAN KILANG POLI SILIKON DI KAWASAN PERINDUSTRIAN 25 SAMALAJU, BINTULU, SARAWAK OLEH SYARIKAT TOKOYAMA (M) SDN BHD

Sipitang Oil & Gas Indutrial Park (SOGIP), Sabah

Imago KK Times Square

Imago KK Times Square

Gleneagles Kota Kinabalu

SUBMISSION FORMAT Submission correspondence: Ketua Pengarah Unit Kerjasama Awam Awasta Jabatan Perdana Menteri Aras 14, Menara Usahawan Persiaran Perdana Presint 2 62652 PUTRAJAYA (u.p: Pengarah Seksyen Dana PPP) Tel :03-8880 5937 Faks :03-8880 5880 1/2/2018

1/2/2018 UNIT KERJASAMA AWAM SWASTA JABATAN PERDANA MENTERI