PKFZ=Port Klang Free Zone,biggest bailout and white
elephant?
I would rather RM 4.6billion pay to few good men to run
country!!
If u draw the relationships of key persons of the project in a
sheet
of paper,u sure can smell somethings wrong.Anyone can help to
draw?
http://www.kualalumpurishome.com/24.08.2007
2007/08/24
Govt throws lifeline to Port Klang Free Zone,By : Eileen
Ng
PORT KLANG: After weeks of speculation, the government broke its
silence yesterday with a firm undertaking to support the
controversial Port Klang Free Zone (PKFZ) in Pulau Indah.
The Transport Ministry said in a statement that the total outlay
for the Port Klang Authority (PKA) project was estimated at RM4.632
billion, after interest, professional and variation charges were
added to the RM1.088 billion in the purchase price of the 405ha
site and development costs of RM1.845 billion.
"Because of the high overall cost of the PKFZ, the government has
approved a soft loan to the PKA. Details of the borrowing are being
finalised," the ministry said.
The project has been criticised as too expensive, particularly
after its price tag ballooned from a reported RM1.1 billion at the
time of its inception in 1999 to a level that has left the PKA
deeply in debt.
In a breakdown of the free trade zones costs, the ministry said
the PKA had bought the land from Kuala Dimensi Sdn Bhd at RM25 per
sq ft, based on a valuation conducted by the Valuation and Property
Services Department.
Kuala Dimensi, an "associate" of Wijaya Baru Global Bhd, had bought
the undeveloped property in 1999 from a local co-operative for RM95
million or RM3 per sq ft.
The ministry said the PKAs purchase price was reached because of
work done on the site, including land reclamation, drainage,
construction of access roads, installation of street lights, water
services and payment to various utility agencies.
"The repayment period to Kuala Dimensi is 15 years at an interest
rate of 7.5 per cent and the land cost came up to RM1.807
billion."
It also explained that an initial plan to develop PKFZ in two
phases had been merged into one on the advice of the then PKFZ
operator, Jebel Ali Free Zone Authority (Jafza).
Jafza exited the management contract signed in October 2003 last
month, citing "strategic" reasons.
Upon Jafzas recommendation, the development costs of PKFZ totalled
RM1.845 billion, comprising four blocks of eight-storey leased
office buildings, 512 light industrial units, three-storey free
zone authority office, three-storey Customs office and checkpoint,
175,000 sq ft exhibition centre, a multi-storey car park, security
building and ancillary buildings.
It also included infrastructure work such as landscaping and
security fencing, the upgrading of roads leading to the PKFZ,
construction of a 135-room business-class hotel, electrical works
and construction of a 42km concrete trenching.
"Taking into account the land acquisition and development costs, as
well as 7.5 per cent interest rate, 10 per cent professional fee
and 20 per cent variation order, the entire development cost of
PKFZ is RM4.632 billion."
It maintained that the PKFZ, which opened for business last
November, was a viable national project to enhance Port Klang as a
loading centre, stimulate the economy, create spin-off activities
and provide jobs.
--www.nst.com.my
The deserted Port Klang Free Zone (PKFZ) in Pulau Indah has
racked up a RM4.632 billion bill, including development costs and
interest payments.
Port Klang
Free Zone or PKFZ in Port Klang
