1 TOWARDS EFFECTIVE & EFFICIENT DELIVERY SYSTEM DATO’ SRI DR. ABDUL MUNIT KASMIN SECRETARY - GENERAL MINISTRY OF WORKS MALAYSIA 18 DECEMBER 2008 GETTING.

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TOWARDS EFFECTIVE & TOWARDS EFFECTIVE & EFFICIENT DELIVERY SYSTEMEFFICIENT DELIVERY SYSTEM

DATO’ SRI DR. ABDUL MUNIT DATO’ SRI DR. ABDUL MUNIT KASMINKASMIN

SECRETARY - GENERALSECRETARY - GENERALMINISTRY OF WORKSMINISTRY OF WORKSMALAYSIAMALAYSIA

18 DECEMBER 200818 DECEMBER 2008

GETTING THINGS DONEGETTING THINGS DONEPLANNING & PLANNING & IMPLEMENTATIONIMPLEMENTATION

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Contents

1. Introduction to Ministry of Works (MoW)

2. MoW Strategic Direction for the 9th Malaysian Plan

3. Current Planning Strategies in the MoW

4. Issues, Challenges & Action Taken

5. Conclusion

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1. Introduction to Ministry of Works

(MoW)

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1. INTRODUCTION TO THE MINISTRY OF 1. INTRODUCTION TO THE MINISTRY OF WORKS MALAYSIA (MoW)WORKS MALAYSIA (MoW)

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1. INTRODUCTION TO THE MINISTRY OF WORKS MALAYSIA (MoW) (continued)

Minister:

YB Dato’ Ir. Mohd Zin b. Mohamed

Deputy Minister

YB Dato’ Yong Khoon Seng

Secretary General:

Y.Bhg. Dato' Sri Dr. Abdul Munit bin Kasmin

Address:

Ministry Of Works, Jalan Sultan Salahuddin, 50580 Kuala Lumpur, Malaysia.

Contact:

mailto:[email protected]

Tel: (603)-2711 1100Fax: (603)-2711 1590 / 1592

Website : http://www.kkr.gov.my

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August 2008

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Legal Framework of Establishing MoW

List Related of Laws and Circulars

1. Federal Constitution

2. Minister’s Function Act [Act 2] Federal Minister’s Orders (no.2 )2008

3. General Circular No. 2, 1982

4. General Circular No.3, 1998

5. Government Contract Act 1949 (rev. 1979) [120 Act]

6. Federal Road Act 1959 [376 Act]

7. National land Code 1965

8. Federal Road Act (Individual management) 1984 [306 Act]

9. Road Transport Act 1987 [333 Act]

10. Delegation of Power Act 1956 [358 Act] Delegation of Power under Section 77, 84, 85, and 85A Road Transport Act 1987

11. Malaysian Highway Authority Act 1980 [231 Act]

12. CIDB Act 1994 [520 Act]

13. Chapter a, (P.U (A) 176/2005) Civil Officer Regulation (Appointment, Promotion and Termination of Services) 2005

14. Letter of Appointment as Controlling Officer BNPK CR(8.15) 152-4 Jld.2 dated 17 April 2008.

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FUNCTIONS OF MoWFUNCTIONS OF MoW(in accordance to the Functions of Works Minister)(in accordance to the Functions of Works Minister)

To plan and implement road projects especially of To plan and implement road projects especially of Federal roads;Federal roads;

To coordinate and monitor the implementation of To coordinate and monitor the implementation of the road projects especially of Federal roads; the road projects especially of Federal roads;

To coordinate and monitor divisions/agencies under To coordinate and monitor divisions/agencies under MoW;MoW;

To provide advisory and support services to other To provide advisory and support services to other agencies of Government;agencies of Government;

To regulate construction, operation and To regulate construction, operation and maintenance of privatized highways; maintenance of privatized highways;

To develop construction and related industries;To develop construction and related industries; To enhance the skills of workforce in the To enhance the skills of workforce in the

construction industries.construction industries. Secretariat to National Industrialized Building Secretariat to National Industrialized Building

System (IBS) technologySystem (IBS) technology

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MoWMoW VISION

To be an outstanding organization in the infrastructure development of Malaysia especially in the construction of Federal Roads and assisting its agencies to elevate the construction and professional services industry to world-class standards.

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MoW MISSIONMoW MISSION

To ensure that the To ensure that the infrastructure development infrastructure development of Malaysia especially that of Malaysia especially that of Federal Roads is of Federal Roads is planned, implemented and planned, implemented and maintained efficiently and maintained efficiently and is of the highest quality as is of the highest quality as well as providing advisory well as providing advisory and supporting services to and supporting services to its agencies in developing its agencies in developing the construction and the construction and professional services professional services industry.industry.

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OUTCOME/IMPACT

Integrated Federal Road planning and implemantation according to schedule, scope, cost, specification and standard defined. Maintenance of Federal Road and Building in accrdance to concessionaires agreement. Actively involvement of Bumi’s contractors / suppliers in national construction industry. Secretariat to National Industrialized Building System (IBS)

IMPLEMANTATION

MONITORINGPLANNING

ASSESSMENT MAINTENANCE

Administration strategy

Human Resources Strategic Planning

Information Technology

Strategic planning (ISP)

Finance and Acaun

Strategy

JKR

CIDB

LLM

LJM

LAM

PSDC

DIVISION ANNUAL ACTION PLAN

MoW ORGANIZATION STRATEGIC PLANNING (PSO)

MoW MAIN ACTIVITY [BPJ, BPP, BKS, BPB]

Law Strategy

Survelliance agency

strategy and Expertise

LJBM

OUTPUT

TO GENERATE THE GROWTH IN COUNTRY’S

ECONOMY & TO INCREASE THE

PEOPLE’S QUALITY OF LIFE STANDARD

MoW SUPPORTING ACTIVITY

International Relation Strategy and Professional

Internal Audit Strategy

Inter-relation between main activity, supporting activity with agencies’ strategic planning in MoW

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Focus Of MoW

All roads which have been declared and gazetted as Federal Road.

The declaration should be in accordance to Federal Road Act 1959 (Revised 1989) [Act 376]

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AUTHORITY OF MoWAUTHORITY OF MoW

FEDERAL ROAD ACT 1959 (REVISED 1989) [ACT 376]

SectionSection TERMTERM METHODMETHOD

33 Power to declare roads, etc., Power to declare roads, etc., to be federal.to be federal.

The Minister may after The Minister may after consultation with the consultation with the Government of the State Government of the State concerned, by order declare any concerned, by order declare any road, bridge, ferry or other road, bridge, ferry or other means of communication in any means of communication in any State to be Federal.State to be Federal.

By the order By the order published in the published in the Gazette.Gazette.

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This Act will gives Minister of Works;1. An authority to use Federal

Fund given to the Ministry in developing Federal Roads.

2. An authority to manage and maintain Federal Roads as in accordance to Road Transport Act 1987 [Act 377]

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AUTHORITY OF MoW AUTHORITY OF MoW (continued)(continued)

The Minister of Works is authorize to;The Minister of Works is authorize to;a.a. Determine Speed limits, Section 69.Determine Speed limits, Section 69.

b.b. To restrict use of vehicles on specified roads, Section 70.To restrict use of vehicles on specified roads, Section 70.

c.c. Accommodate Pedestrian crossings, Section 75.Accommodate Pedestrian crossings, Section 75.

d.d. Erection of traffic signs, Section 77.Erection of traffic signs, Section 77.

e.e. To erect refuges, subways and foot-bridges, Section 83.To erect refuges, subways and foot-bridges, Section 83.

f.f. To remove structures from roads, Section 84.To remove structures from roads, Section 84.

g.g. Construction of access and drains and laying of public utility Construction of access and drains and laying of public utility installations to existing roads, Section 85.installations to existing roads, Section 85.

h.h. Construction of structures for advertisement, etc, Section Construction of structures for advertisement, etc, Section 85A.85A.

i.i. Restriction of vehicles on bridges, Section 86.Restriction of vehicles on bridges, Section 86.

j.j. To impose Rules, Section 88.To impose Rules, Section 88.

From ROAD TRANSPORT ACT 1987 (ACT 377]

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Explanation to the FEDERAL ROAD ACT 1959 (REVISED 1989) [ACT 376]

The Act explains that the Minister Of Works is the owner of the Federal Roads;

Thus Ministry of Works (MoW) is responsible to plan, implement, maintain and develop all Federal Road using Federal Fund;

To maintain all Federal Road in accordance to Road Transport Act 1987 [377 Act];

However MoW will continue its policy by appointing Public of Works Department (PWD) as his strategic implementation agency;

An official letter of the appointment will be issued.

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Secretary General of MoW is:-• The Chief Executive Officer of the Ministry;• The Financial Controlling Officer for the allocation

given to the Ministry;• The Head for the Development and Maintenance

projects on the Federal Roads. Development includes approving projects

and maintenance works of the Federal Road. Public Works Department (PWD) will be

appointed by MoW to implement the projects.

Explanation to the General Circular No.2, 1982

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Types of Federal Roads

Types Of Roads Owner

Road No.

1. Main Federal Road MoW 1, 3, 21, 22, 25, - 228, 800 – 803 (Sarawak),500 – 503 (Sabah),700 – 731 (Labuan)

2. FELDA Road MoW 1000 - 2748

3. Industry Road MoW 3000 - 3740

4. Access to Institutional MoW 250 - 479

5. Tolled Expressway MoW E1 – E 30

6. State Road State Govt.

Denoted with state’s alphabet followed by its own number; eg B15, A4 etc.

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Statistics

Federal Roads Under MoW Jurisdiction• Main Federal Roads - 10,673 km;• Felda Roads – 5,645 km• Industry roads – 404 km• Institutional roads – 385 km.

Total of 17,107 km (2008) Another 1,200 km in process of

being transferred to Federal jurisdiction.

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MoW’s Strategic Implementation Agency and its Region Coverage

Agencies Region Coverage

1. Federal Public Works Department

Peninsular of Malaysia

2. Sabah Public Works Department

Sabah

3. Sarawak Public Works Department

Sarawak

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2. MoW Strategic Direction for the 9th

Malaysian Plan

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DEVELOPMENT PLANNING PROCESS IN MoW

PLANNING

EVALUATION

MONITORING

IMPLEMENTATION

Budget(EPU & Cabinet)

MASTER DEVELOPMENT PLAN

IMPLEMENTOR AGENCY- PUBLIC WORK DEPARTMENT

(PWD)

MOW’s5 year Plan Project List

Engineering Values

Land Use

Federal Fund Economy Environment Social

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12. Road Maintenance & Inventory

Monitoring of repair works during defects-liability period

Preparation of budget estimation for maintenance

Closing of AccountsRoad inventory &

gazette

13. Outcome study & evaluation

Project Outcome against planned targets

Road alignment alteration & upgradingBumiputera participation & “leakages”Design improvementOutcome report

1. Road Network Strategic Planning

Strategic Planning for Roads

Policy Requirement feasibilty study

Identifying suitable road alignments and projects

2. 5-Years Malaysia Plan’s Development Plan Review

Determination of policies and projects

Financial estimation and implementation schedule

3. Economic Planning Unit Prime Minister

Department (Approval)

Approved projects List

4. Pre-Budget

Road Alignment decisionProject briefSite DeterminationCost EstimationState road declaration for upgrading works

5. Budget approval from Ministry of Finance

Approved projects list

6. Project submission to technical

department for implementation

7. Preparation of Need Statements

8. Procurement procedures (Treasury

Instructions)

Internal appointed consultant design

Design & Build (or Turnkey)

Resolve land acquisition issues and determination of roads

Tender document preparation

Price consultation

Letter Of Intent (LoI) issued to contractor with Treasury approval

Valuation & price negotiation by the technical department

Treasury Approval

Open Tender

Selective Tender with Treasury approval

Valuation of Tender

Tender Board

Treasury Approval Letter of

Undertaking to Land Authority solve the land acquisition & decision of road alignment

11. Completed Completed Project

handed over from JKR to KKR

10. Monitoring

Physical progress Financial Management Site Problems Utility Relocation Contract Management Traffic Management Contractor Financial & contract management‘Leakage’ & Bumiputera Participation

9. Construction

Handing Over Site Possession To

Contractor

8a. Letter of Acceptance (LoA) Issued

< RM50 j

> RM50 j

Procurement process

Process Divisions / Units / Agencies Involved

1,2,4,13 Highway Planning Unit (HPU)3,4,5,6,

10Development & Privatisation Division (BPP)

12 Maintenance Regulartory Division (BKS)

4,8 Finance Division (BK) dan PWD

10,13 Bumiputera Development Division (BPB)

7,9 Public Works Department (PWD)

Working Process in MoW

Agency to issue LA, If cost of contract

< RM 20 m, PWD;

> RM 20 m MoW

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Type of Works and Approval Division/AgencyType of works Approving division /

agency

1. Notification of implementing project

MoW

2. Need statement MoW

3. Consultant MoW

4. Type of procurement MoW

5. Letter of Acceptance PWD (however, for contract cost > RM 20m, a letter of delegation of power from minister is required),

6. Implementation PWD

7. Monitoring MoW

8 Handing Over PWD

Conclusion

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9th Malaysia Plan Road Development Concept

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HNDP Phase 1: Conceptual DevelopmentTo Strengthen the West

Coast Network and East Coast Network

• The Existing FR1, FR5 and NSE for the West Coast and FR3 and East Coast Expressway for the East Coast should be further strengthen.

• Development of Ring Roads and Bypass

To Improve and Strengthening the East West Movement

• Enhance of Small Development Centre and provide alternative movement of traffic during major road mishap

To Improve Linkages and Support Growth of Regional Development

• More accessibility to regional land development and new entry points

To Improve Linkage for Promoting Growth of the Central Corridor

• Definitive clear road network hierarchy

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Summary of Projects (2006-2020)

CONCEPTUAL REGIONAL HIGHWAYCONFIGURATION PLAN FOR PENINSULAR MALAYSIA

PERLIS

KEDAH

PERAKKELANTAN

TERENGGANU

PAHANG

JOHORMELAKA

NEGERISEMBILAN

SELANGOR

PULAUPINANG

Project Description

Length (km)

Road Upgrading and

Widening

3.741 (61%)

New Roads2,379 (39%)

Total6,120

(100%)

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99thth Malaysia Plan emphasized: Malaysia Plan emphasized:

To improve the standard and sustainability of quality of life; To strengthen institutional and To strengthen institutional and

implementation capacityimplementation capacity• To complete road network and to ensure better To complete road network and to ensure better

connectivity between urban growth centers;connectivity between urban growth centers;• Complete 8Complete 8thth MP continuation projects; MP continuation projects; • Concept of development with human touch Concept of development with human touch

(people-centered development);(people-centered development);• Enhanced road safety;Enhanced road safety;• Improved facilities for road users; andImproved facilities for road users; and• Promoting hinterlands road as central spine Promoting hinterlands road as central spine

network.network.

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3. Current Planning Strategies in the Ministry of

Works

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Current Planning Strategies in the Ministry of Works

Central Spine Network

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• Special attention given to Special attention given to Sabah and SarawakSabah and Sarawak• To complete and upgrading Trans To complete and upgrading Trans Borneo road Borneo road network; network; • Providing access to new agro – Providing access to new agro – tourism areastourism areas• To provide inner circle road in SabahTo provide inner circle road in Sabah

MTR 9MTR 9thth Malaysia Plan Malaysia Plan emphasized:emphasized:

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In addition to the above, MoW’s In addition to the above, MoW’s strategy will also include:strategy will also include:– To implement projects recommended To implement projects recommended

by the Highway Network by the Highway Network Development Plan (HNDP), 2007Development Plan (HNDP), 2007

MTR 9MTR 9thth Malaysia Plan Malaysia Plan emphasized:emphasized:

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MOW’S DEVELOPMENT PROGRAM AND BUDGET UNDER 9th MP (After Mid Term Review)

No Program’s Category No of Projects

Ceiling (RM billion)

A 9th MP Project Continuation 542 19.92

1 Program Roads/Bridges 398 18.46

2. Program Building 145 1.11

3. Private Financing Initiative3. Private Financing Initiative 1 0.350.35

B New 9th MP Projects 19 0.44

1. Studies Projects –Forward Planning 13 0.06

2. Safety Projects 3 0.25

3. Highways New Projects 3 0.13

GRAND TOTAL 562 20.36

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MoW’s Achievement In Implementing 9th MP Projects

(up to November 2008)

Projects completed = 210;Projects within schedule

and under planning = 321;Projects behind schedule =

12; andSick project = Zero (0)

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MOW’s Achievement (up to 15 December 2008)

Year Allocation (MRY bn)

Expenditure (MYR bn)

%

2006 5.11 5.06 99.1

2007 4.99 4.95 99.3

2008 4.82 4.48 93.0

Total 14.92 14.49 97.1

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FORECAST ON MOW’S ALLOCATION 2009 - 2010 Year Forecast Allocation

(MYR bn)

2009 3.40

2010 2.90

Total 6.30

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4. Issues, Challenges & Action Taken

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ISSUES

Issues during project implementation:Issues during project implementation: Failed in appreciating strategic and project Failed in appreciating strategic and project

planning;planning; Planning complete after all project approved;Planning complete after all project approved; Project approved without planning.Project approved without planning.

Allocation of budget – not enough;Allocation of budget – not enough; Squatters;Squatters; Negative impact on environment issues;Negative impact on environment issues;

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ISSUES (continued)

The residence disagree with the project.The residence disagree with the project. Delay in land acquisition;Delay in land acquisition; Delay in relocation of public utility;Delay in relocation of public utility; Weakness in tactical implementation – Weakness in tactical implementation –

incompetence of supervising officer;incompetence of supervising officer; Lack of labor forces;Lack of labor forces; Weakness in executing power allowed in Weakness in executing power allowed in

contract, e.g hesitate to take action; andcontract, e.g hesitate to take action; and Increase in price of construction Increase in price of construction

material.material.

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CHALLENGES UNDER THE 9CHALLENGES UNDER THE 9thth MPMP

To complete all the projects To complete all the projects as planned;as planned;

To ensure implementation To ensure implementation within the cost provided with within the cost provided with optimum usage of optimum usage of engineering values.engineering values.

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ACTION TAKEN

Improving planning procedure;Improving planning procedure;– Implementing Key Performance Index (KPI), Implementing Key Performance Index (KPI),

/ Benchmarking / ISO; / Benchmarking / ISO;– Appreciate role of EPU (indicative planning);– Appreciate role of Treasury (detailed plan);

Improving strategic partner Improving strategic partner responsibility in implementation;responsibility in implementation;– Increase the quality of the project Increase the quality of the project

management;management;– Enhance the capability in handling Enhance the capability in handling

government contract;government contract;– Enhance the knowledge pertaining to Enhance the knowledge pertaining to

implementation of project.implementation of project.

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ACTION TAKEN (continued)

Improving the capability of the Improving the capability of the development officer in MoW which development officer in MoW which involves;involves;– Project planning;Project planning;– Project implementation;Project implementation;– Project monitoring.Project monitoring.

Provide adequate allocation to Provide adequate allocation to complete the project.complete the project.

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ACTION TAKEN (continued)

Improving implementation machinery - Reducing bureaucracy;- Human resource development;-- By improvements in contract By improvements in contract management management procedures such as procedures such as increasing advance increasing advance payment etc; andpayment etc; and- Adequate man power.

Improving the efficiency of project;Improving the efficiency of project;-- Using IBS technology.Using IBS technology.

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To spur growth in construction sector:To spur growth in construction sector:• To reduce size of projects so more contracts are To reduce size of projects so more contracts are

available;available;• To carry out projects through open tendering;To carry out projects through open tendering;

To further enhance capability of To further enhance capability of contractors:contractors:• Training of contractor [by CIDB];Training of contractor [by CIDB];• Use of new technology [e.g. IBS]; andUse of new technology [e.g. IBS]; and• Close monitoring of contractors performance by Close monitoring of contractors performance by

CIDB including the rating of contractors.CIDB including the rating of contractors.

ACTION TAKENACTION TAKEN (continued)(continued)

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To monitor PWD performance with To monitor PWD performance with respect to Client Agencies projects respect to Client Agencies projects (over 6,000 projects);(over 6,000 projects);

To liaise more closely with State To liaise more closely with State Governments and Agencies, Utility Governments and Agencies, Utility Companies/Agencies to smoothen Companies/Agencies to smoothen implementation of projects;implementation of projects;

To support PWD in terms of capacity To support PWD in terms of capacity buildingbuilding

ACTION TAKENACTION TAKEN (continued)(continued)

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5. CONCLUSION5. CONCLUSION

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CONCLUSIONCONCLUSION

The MoW will continue to play an The MoW will continue to play an important role in planning the important role in planning the development of the road network of development of the road network of Malaysia to ensure maximum impact;Malaysia to ensure maximum impact;

The MoW will continuously endeavour The MoW will continuously endeavour to improve the project delivery system to improve the project delivery system to ensure the timely completion of all to ensure the timely completion of all development projects ;development projects ;

The MoW shall continue to facilitate the The MoW shall continue to facilitate the training of manpower for the training of manpower for the construction industry;construction industry;

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CONCLUSION CONCLUSION (continued)(continued)

The MoW will encourage the The MoW will encourage the development and use of new methods development and use of new methods of construction such as IBS;of construction such as IBS;

Privatization and PFI will continue to Privatization and PFI will continue to play a major role under 9play a major role under 9thth MP and may MP and may be expanded further;be expanded further;

The MoW shall continue to source for The MoW shall continue to source for projects abroad on Govt. to Covt. Basis. projects abroad on Govt. to Covt. Basis. Contractors, too, should actively Contractors, too, should actively explore opportunities abroad on their explore opportunities abroad on their own. (refer to CIDB); own. (refer to CIDB);

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References

KKR - Strategic Organization Plan of MoW, 2008; KKR – Panduan Mengenai Bidang Kuasa Menteri

& Pegawai Pengawal Kementerian Kerja Raya, 2008;

KKR – Kajian Separuh Penggal RMKe9 KKR 2009-2010, 2008;

KKR – Blue Print Pelaksanaan Rangkaian Jalan Raya Malaysia Dalam RMKe9;

KKR– Fungsi Menteri, Akta Pengangkutan Jalan 1959, Akta Pengangkutan Jalan 1987, Pelembagaan Malaysia, Penurunan Kuasa;

KKR – Surat Perlantikan Pegawai Penguasa KKR, 2008;

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THANK THANK YOUYOU