MP Claims Government Struggles to Appoint Bandar Malaysia Master Developer

November 16, 2017

 
It appears that the Federal Government is struggling to appoint a new master developer for the highly-anticipated Bandar Malaysia project, claimed Petaling Jaya Utara MP Tony Pua.

The lawmaker noted that four months have already passed since the authorities launched request for proposal (RFP) for major global companies interested in taking up the said role, but sadly there is zero fresh updates on the matter.

“All we have from the media and parliamentary responses is that there are six to eight companies that are, perhaps, interested in the project,” he said.

Previously, a consortium consisting of Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp (CREC) was appointed as the master developer of Bandar Malaysia.

In December 2015, the joint venture IWH CREC Sdn Bhd agreed to buy a 60 percent stake in the mega development for RM7.41 billion (US$1.7 billion), and forked a 10 percent down payment or RM741 million.

The deal was hailed by Prime Minister Najib Razak as it would help solve the debt woes of 1Malaysia Development Bhd (1MDB), the former landowner of Bandar Malaysia.

However, the Federal Government scrapped the deal last April after the consortium failed to meet its financial obligations despite repeated extensions. It also returned the RM741 million down payment.

“Bandar Malaysia is not any closer to finding a new ‘suitor’ than when it terminated the failed agreement with the IWH consortium,” said Pua on Tuesday (14 November).

“The so-called ‘interested parties’ were either not that interested or were unwilling to offer anything close to the Finance Ministry’s overpriced valuation for Bandar Malaysia.”

Pua claimed that the Ministry of Finance’s (MoF) recent parliamentary reply indicates that the new bidding process for the mammoth development is not proceeding smoothly.

“In the Finance Minister’s answer to my question, he only stated information, which was already made known to the press for months. He said that the RFP process had been completed and listed out the same criteria that had been said before.”

“He added that eight companies had met these criteria and that a final decision will be announced soon,” he noted.

Previously, the Federal Government expected to appoint a master ?developer this quarter, with firm agreements targeted to be inked before the next General Election in mid-2018.

However, Pua doubts whether Putrajaya can obtain the bid price it hopes for.

“MoF should stop daydreaming and start getting real. The previous Bandar Malaysia ‘open tender’ resulted only with the IWH consortium winning the bid but failing to secure the necessary financing for the valuation to complete the transaction.”

“It raises the question of why would any global company in the right mind, offer anything more for Bandar Malaysia especially when they also know that MoF is rather desperate to make the sale.”

 

Image sourced from NST.

 

This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my

 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

POST COMMENT

You may also like these articles

TRX to Conduct RFP to Select Bandar Malaysia Master Developer

  TRX City Sdn Bhd will soon conduct a request for proposal (RFP) process to select the master developer of Bandar Malaysia, said Treasury Secretary General, Tan Sri Dr Mohd Irwan Serigar Abdu

Continue ReadingMay 18, 2017

Bandar Malaysia Might Attract Limited Bidders

 Companies from about four nations are expected to join in the tender for the Bandar Malaysia project, according to Professor Hoo Ke Ping, who is also an independent economist.Last week, the Mini

Continue ReadingJuly 5, 2017

Najib Insists on Hiding Cost of TRX- Apparently Due to Confidentiality Clause

  The Ministry of Finance (MoF) refuses to divulge the exact size and selling price of the land in Tun Razak Exchange (TRX) it bought from 1Malaysia Development Bhd (1MDB) in 2015 because it doe

Continue ReadingNovember 14, 2017

Feedback