Ingenieur Vol. 64 Oct-Dec 2015 Ingenieur Vol 64 Oct-Dec 2015 | Page 55

Diagram 1 - Project Governance Structure T here are several challenges in dealing with brownfield development projects via PPP related to land ownership, financial impediment, public acceptance and interdepartment co-ordination. Land Ownership One of fundamental elements in signing a concession agreement with the Federal Government is that the subjected land in the concession agreement must be owned by the Federal Government under the name of the Federal Land Commissioner. The issue arises when some of the subjected lands are owned by other entity such as by a State Government or private body. The ownership of these lands must be firstly transferred to the Federal Government before the agreement can be effective. In one rationalization of STP project5, there were several lands which were initially owned by private developers but such lands were reserved by the Government for sewerage purpose. The issue happened when the proponent company planned to build a new pumping station as part of the rationalization work scope but due to the ownership of some lands by private bodies, the proponent had to come up with solutions which were more costly than constructing the pumping station. Financial Impediment Some PPP approaches such as B.L.M.T and O & M contracts demand the Government pay the concession company availability charges or deferred payment to the concessionaire throug hou t the c onc e s sion p erio d in consideration of the public works done by the concessionaire. The choice of PPP approaches is limited sinc