The INTOSAI Working Group on Financial and Economic Stability (INTOSAI WGFES) meeting was held online on 24 April 2024.

The event was organised by the National Audit Department of Malaysia. The event was attended by representatives of 29 SAIs. The main topic of the session was National Practices in Auditing the Implementation of Infrastructure Projects Implemented under Public-Private Partnership (PPP).

Auditor General of Malaysia Ms. Wan Suraya Wan Mohd Radzi addressed the participants with an opening speech, noting the importance of PPP mechanism for socioeconomic development and increasing the investment attractiveness of regions. Mr. Shamstudin Abdullah, Senior Assistant Director of the Prime Minister's Department of Malaysia, spoke about the main approaches to PPP implementation in the country. The main problems include inefficient management of long-term capital-intensive investment projects (improper assessment of potential costs and risks, increased costs in the course of fulfilment of contractual obligations).

“Build America” representative Ms. Maritza Pechin drew participants' attention to the financial risks in PPP implementation: changes in project costs due to inflation and, as a result, the need to increase the budget. The possibilities of self-sufficiency and attracting additional private investment in the short term are limited. The economic viability of the project ultimately depends on public financial support.

Special attention was paid to the discussion of PPP preparation. The main task at this stage is to harmonise the interests of the public and private parties. Defining achievable goals, establishing rights and obligations, working out mechanisms for communication and expert consultations, analysing economic and political risks are the factors that ensure continuous implementation and ultimate success of the project.

Mr. Matthew Rees, representative of the UK National Audit Office, shared his experience of the private finance initiative (PFI) projects. In 2018 it was decided to cancel further PFI projects due to low economic feasibility: price and quality mismatch, high risks.

Mr. Hari Ryadin, representative of SAI Indonesia, spoke about the results of the PPP project management performance audit. Among the main shortcomings identified was the lack of an internal system for monitoring the performance and quality of implementation of partnership projects. To solve the problem, it was recommended to improve coordination between stakeholders, actively use digital tools to support decision-making and project development.