Public private partnerships : lesson from sukuk

Abstract EN

The public private partnerships are considered as the hybrid of privatization policy.

It is one of a range of policies introduced by the public authority to increase the involvement of the private sector in the provision of public services.

Although, there is no such reviews of this mechanism, but the public authority will continue to pursue the delivery of some public services through this means.

It was introduced in 1990s.

However, much of the methods of financing are clouded by conventional instruments like bonds and senior bonds.

The other alternatives are to issue Islamic related instruments via sukuk.

This paper will consider whether the public private partnerships will open up for new risks, using an example of KLIA projects.

However, due to the underlying contracts assigned to each particular projects, it might lead to relate this public private partnerships to law origin in the issuing country.

Both the risks and law origin are crucial in issuing sukuk.

Hence, both may draw lessons to policymakers and players.