Improving off - site infrastructure provision through the Planning Approval System in peninsular Malaysia

Abstract

The scarcity of financial sources has caused local authorities to no longer remain as the single providers of off-site local infrastructure. This has forced them to diversify and identify new methods to accommodate the provision. This has raised the need for the present practice to be reformed in order to involve the private sector. This research examines the possibility of applying planning approval system to secure off-site infrastructure from the private sector. To achieve the objective, the research used both qualitative and quantitative methods to identify the hindering factors of the present practice of off-site infrastructure provision. The findings showed that most off-site infrastructure provisions were delivered by public sector. The private sector delivery was only evident in large-scale development. The responsibility to provide off-site infrastructure now falls under the mutual responsibility of both private and public sectors. In addition, the development plans has played a significant role in terms of the mechanism in coordinating new development with adequate provisions of off-site infrastructure. The tendency of private sector to contribute off-site infrastructure is influenced by the cost of development. The main issues of private involvement in local infrastructure provision (off-site) are caused by the inconsistency of the conditions imposed by local authorities to justify the requirements of off-site infrastructure. The findings propose the practice of off-site infrastructure provision to be clearly defined and standardised. The study revealed that planning approval system can be used to provide off-site infrastructure by private sector through negotiation with approving local authority as the most acceptable approach. However, it requires further investigations to detail how the framework of negotiations should be outlined and the structure to be applied. The implications of the findings have shown that the system should be improved by integrating the element of negotiations as alternative means in considering planning approvals and the types of infrastructure delivery should be diversified to include Build Operate and Transfer (BOT), Public-Private Partnership (PPP), Private Finance Initiative (PFI) and other methods of private delivery. The basis to seek contributions from private sector should be properly established and local authority therefore shall establish an Integrated Planning Approval System which enables them to distribute costs of providing infrastructure to potential users.