MBPJ Collected RM77.8m From Developers For PJ City's Improvement Service Fund

September 28, 2018

 

Real estate developers have paid a total of about RM77.8 million to Petaling Jaya City Council (MBPJ) for the city’s Improvement Service Fund (ISF) since 2010, reported The Star.

Of this amount, MBPJ spent RM72 million to enhance the city’s infrastructure, revealed Petaling Jaya Mayor Datuk Mohd Azizi Mohd Zain.

Under the Road, Drainage and Irrigation Act 133, property developers are required to contribute to the ISF, which is used by councils to construct roads and drainage in their respective cities, as well as upgrade and maintain these.

In particular, a part of the amount gathered for Petaling Jaya was used for various projects like upgrading a stretch of Jalan Tanjung until the intersection of Lebuh Bandar Utama and Jalan Tropicana Utara.

Another portion was also spent for widening Jalan PJU1A/4F, paving along Jalan PJU1A/1, and fixing the Sungai Penchala retention wall.

A part was used for works in Vista Subang low-cost flats, including the design and construction of the driveway there. This is in addition to the level intersection widening for Bandar Utama, as well as the soil nailing works and the construction of Jalan 5/60 drainage.

It also funded the consultation fee to implement the one-way system along Jalan Barat and Jalan Timur.

While property developers are required to contribute to ISF depending on their developments, certain projects are exempted. These include schools, welfare buildings, religious premises, extensions to existing buildings and affordable housing costing RM42,000 and below.

“The highest amount collected under ISF was RM26.5 million in 2015, and in the same year, about RM30.5 million was spent.”

“As of August 31 this year, about RM2.8 million has been collected and RM864,614 spent from this fund,” noted Mohd Azizi.

Notably, the usage of the fund is decided by the ISF committee, which is chaired by the city mayor. Its other members consist of the deputy mayor, treasury director, council’s legal advisers and the engineering director.

Aside from being responsible for all reports and statements pertaining to the usage of the fund, the body also approves annual ISF expenditure or additional expenditure of the fund.

 

Image sourced from Star Online

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

 

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