The Malaysian Insider
Wednesday November 25, 2009
By Asrul Hadi Abdullah Sani
KUALA LUMPUR, Nov 25 — International Trade and Industry Minister Datuk Mustapa Mohamed today defended the proposed expo centre in Jalan Duta from controversy after the RM628 million project was given to Naza TTDI, saying the government was getting it for free.
Mustapa explained that building-for-land deal is good value for the Malaysian External Trade Development Corporation (Matrade).
“The valuation of the land in 2007 is RM197 million and we are getting RM628 million’s worth building so we are getting value for money for us. We need a big centre,” he told reporters in parliament here.
The mammoth expo centre being built on a 13.1-acre site in Jalan Duta here is to be developed by Naza TTDI, a unit of the Naza Group, in exchange for 62.5 acres of state land at RM226 per square foot although the market value of the land could reach RM1.5 billion. The entire project will have a gross development value of RM15 billion.
The Matrade centre is estimated to be 90,000-sq-m and set to be completed in 2013.
Mustapa noted that the currently available exhibition centres in the Klang Valley were too small to lure major investors.
“We need this centre and to us it is value for money. What we have now is small in comparison with our requirements and is small in comparison to what other countries have.
“You must also understand that this is a comprehensive development, it is not just the centre but they will also be building hotels, apartments, shopping malls and parking space. So the gross development value will come to RM15 billion. The concept will be like KLCC except that this will be huge. It will be eight times bigger than KLCC,” he explained.
Mustapa pointed out that total area of the four major expo centres in Kuala Lumpur (Kuala Lumpur Convention Centre, PWTC, Matrade Exhibition and Convention Centre, and Malaysia Agro Exposition Park Serdang) is only 56,214- sq-m, lower compared to Singapore Marina Bay Sands’ 120,000-sq-m.
He also stressed that Matrade will be getting the expo centre for free, which will help the government save taxpayers’ money.
“Matrade is not putting up a single cent. Otherwise we have to beg and steal and borrow from the government. But maintenance is, of course, ours. That building, when it is completed in four years, is going to be ours. We are getting the building for free, otherwise we have to pay RM628 million, which is a big amount of money.
“This is nothing but a public-private partnership. We have land, we partnered with the private sector. We have this building for free and in return we give them a piece of land.
“We are in dire need of a big space for exhibition and we did not ask for any money from the government and the government is, of course, facing a very difficult period in funding,” the minister said.
Mustapa also revealed that there was no open tender because Naza TTDI was the company that proposed the project.
“In March 2007, we submitted a note to the cabinet informing of the proposal from Naza TTDI to put a Matrade trade centre near Jalan Duta on land which belongs to Matrade.
“On December 2007, the cabinet decided that we can proceed with the proposal by Naza TTDI. The total land area is 75 acres, 13 acres is for the Matrade center, 62.5 acres is for the company to develop,” he added.
Mustapa described Naza TTDI as a “reputable” developer and said it had put up a proposal that went through due diligence by the authorities.
“They are a reputable company and they were the only one to put the proposal to the government and we needed the building. They are Naza TTDI, they developed Taman Tun. They are a very experienced developer,” he explained.
The DAP has been urging Prime Minister Datuk Seri Najib Razak to hold an open tender for the proposed Matrade expo centre.
Its leader, Lim Kit Siang, said that the government should declassify all ministerial papers relating to the project and table it in Parliament to show
necessary due diligence has been done to ensure costs and profits were not inflated if they persist with Naza TTDI as the contractor.
Earlier, Petaling Jaya Utara MP Tony Pua raised his concerns over cost of the proposed Matrade centre and was worried that project would become the next Port Klang Free Zone (PKFZ) scandal.
“It does not make sense that Naza is asking for just a little less than RM200 million for the centre and it also seems like they have obtained the 75 acres of land for RM70 per sq feet when the current market price in the nearby Hartamas area is a lot more than that,” Pua said during the Supply Bill debate in parliament.
Mustapa refused to answer and instead accused Pakatan Rakyat (PR) MPs of complaining too much.
“They complain about the building of Subang Airport, about the construction of the second bridge and Putrajaya, but they now want to go to Putrajaya,” Mustapa said.
Pua argued that PR MPs were not complaining about the project but were questioning the escalating costs.
Mustapa ignored Pua again and insisted that the centre will become a “new growth centre in Kuala Lumpur.”
#1 by donplaypuks on Wednesday, 25 November 2009 - 10:07 pm
YB
I trust DAP will not fall for the usual UMNO Minister’s BS spiel that there will be no open tender because Naza came up with an original proposal.
How did Naza become privy to Matrade’s plans for a CC, a matter which should have been covered by the Govt’s Official Secrets Act? This suggests that someone leaked the info and so there should now ben an open tender.
The Minister also misleads us by saying Naza TTDI is an experienced developer. First TTDI was bought over by Naza in recent years long after Taman Tun was developed. Naza itself is not a property developer of any renown.
So, if Matrade wants a CC, what it needs is a construction company and who they contractor team up with is their problem, not the Govt’s.
It is a simple matter to call for open tender and set the quantum of land that can be exchanged with any contruction company/ developer so that the Govt does not come up with any cash. With an open tender the Govt is likely to minimise the quantum of land exchanged with a contractor.
Naza TTDI’s construction cost of $625 per sq ft seems quite high. Does it include the interior fit-out (Furniture and Equipment etc) or is that going to be another mega billion $ Govt Budget item?
And this is exactly the problem with these ‘directly negotiated’ mega zillion $ contracts – the taxpayer is never privy to the finer details which would assure us that all is above board!!
So YB, keep digging till all the relevant facts of this cozy UMNO/NazaTTDI deal are exposed to daylight!!
dpp
We are all of 1 race, the Human Race
#2 by HJ Angus on Wednesday, 25 November 2009 - 10:10 pm
“The mammoth expo centre being built on a 13.1-acre site in Jalan Duta here is to be developed by Naza TTDI, a unit of the Naza Group, in exchange for 62.5 acres of state land at RM226 per square foot although the market value of the land could reach RM1.5 billion.”
How does the “for free” argument arise?
If the market value is RM1.5b and the building is worth RM628m it seems the government is giving away RM922m.
This type of private/public venture will raise the highest yields via a public international tender if we are really serious about getting the best deal for the nation.
Such a large deal should require more time and wider publicity and not just announced as a done deal.
Of course this secret deal will also be fantastic for the few involved.
#3 by OrangRojak on Wednesday, 25 November 2009 - 10:20 pm
Sorry to be irrelevant, but I was just doing something for Malaysia for free, and I’m being anally retentive about doing it right.
If you search Google Images for Jalur Gemilang, there’s quite a variety of colour in the images – as well as in the geometry of the flag. Is there a government specification (colours, geometry) for the Jalur Gemilang available online somewhere? I’ve searched, but cannot find one. The UK’s HM Government specifies its colours in the Pantone system, but any easily convertible system will do for me:
http://www.civilservice.gov.uk/Assets/international_tcm6-2116.pdf
#4 by pwcheng on Wednesday, 25 November 2009 - 10:51 pm
We have a bunch of weird jokers in UMNO. Weird because being minister, they somehow do not know the “exchange rate”. They are jokers because no businessman in their right frame of mind will give you something “value for money” if they do not get a double up their money. The only thing that matches is that both have bad track records. UMNO corrupted to the heels and probably already counting how much they can share out, and NAZA the AP king has got so much for free and probably asking for more, just like Oliver Twist, “I want more”
If they need such a large trade center for the good of the country,, go ahead but please be transparent and open it for tender for the highest bidder. Mustapa, Do not make us as suckers just because somebody wants to get rich the easy way.
#5 by House Victim on Wednesday, 25 November 2009 - 11:54 pm
1. So MaTrade will get an Expo Centre of 90,000sq m which is around 100, 000sq ft estimated to cost 628million, meaning 628/sq ft!!
#1 by donplaypuks on Wednesday, 25 November 2009 – 10:07 pm- You are Right!! How can it be so costy??
Should it cost more than 150-200/sq ft??
2. In return, Naza will get 62.5 acre of land fee which is in the range of 1.5billion!!
3. The same tune as PKFZ of self-finance, reputable company, experienced developer……and same by-passing the Parliament!!
4. Why should that piece of State Land belongs to Matrade? And, the Expo Centre then belongs to Matrade??
How many Government Assets are under Ministries or their Agencies??
5. Does the Cabinet or the Ministry has to rights to decide and approve such project?
AGAIN ABUSE OF POWER, VIOLATION OF RULES & REGULATIONS!! (Black Box Operation!)
Yet, HE DARE TO PUFF ALL MALAYSIANS UNDER THE SKY!!
Or the sky had long collapsed??
#6 by boh-liao on Thursday, 26 November 2009 - 12:32 am
De more our ministers open their mouths
More sh!t n poo hit the fan
De best is fr our Pembohong Maha
“Malaysia stands ready to play its role to make it a better world,” he told a gathering of Malaysians at the Malaysian embassy in Washington
B4 play play on de world arena
He n RM should first emulate AI who successfully sued de NST 4 defamation
He n RM must sue Bala 4 defamation
In fact, his brother too must sue Bala 4 defamation
Y so takut, tak jantan ah
Perhaps, Bala was correct, correct, correct
#7 by ringthetill on Thursday, 26 November 2009 - 1:59 am
Hi Minister. How do you know that the we won’t get an even better deal if it is open to tender?
We may even get gold-plated taps and toilet seats thrown in free of charge.
Do you know the meaning of acting and behaving transparently? Old habits die hard, eh?
#8 by ringthetill on Thursday, 26 November 2009 - 2:03 am
And, haven’t you heard that there is no such thing as a free lunch. So, think again, is the building for free as you have claimed or were you mis-quoted?
#9 by gofortruth on Thursday, 26 November 2009 - 2:08 am
“This is nothing but a public-private partnership. We have land, we partnered with the private sector. We have this building for free and in return we give them a piece of land.
————————-
International Trade and Industry Minister Datuk Mustapa Mohamed thinks we are all fools. He has better go and attend a business course 101 so that he has a chance to begin to appreciate what is “fairness” out of this so called public – private partnership deal.
A land with a market value of RM1.5b (RM1500m) and project value of RM 15b (RM 15000m in exchange for a building of RM 628m. What stupid deal is this????????
Is there any wonder why 1 sing dollar is worth more than RM2.45 today???
Don’t we have qualified people to look after this International Trade and Industry portfolio??????
#10 by boh-liao on Thursday, 26 November 2009 - 2:25 am
Aiyah, don’t play play with ITI minister n siah sway him
He graduated from the University of Melbourne, Australia with a First Class Honours degree in Economics and from the University of Boston, U.S. with a Masters in Economic Development.
He was awarded an Honorary Doctor of Commerce by the University of Melbourne
Orang pandai n kuat 1
#11 by ekompute on Thursday, 26 November 2009 - 2:42 am
“This is nothing but a public-private partnership. We have land, we partnered with the private sector. We have this building for free and in return we give them a piece of land.”
Is Datuk Mustapa Mohamed saying that Naza TTDI is getting a stupid deal?
Maybe the UMNO-led government should begin to pursue fairness, rather than looking for “suckers”. At the end of the day, it is the rakyat who suffers. Who is paying for all those multi-billion dollar scandals? UMNO? My foot!
#12 by frankyapp on Thursday, 26 November 2009 - 3:06 am
A minister,mustapa,believed in getting the Expo centre for free…..well does he knows there’s no such thing as a free lunch ? As an international trade minister,I’m pretty disappointed with his naive thinking .This raises the issue whether he’s capable to deal with international trade talks with his counter-parts from other countries.No wonder Malaysia trade export has gone down and the prices of all imports are pretty more expensive nowadays.No doubt now why Malaysia too is losing its competitiveness and corruption index has reached 56th position.The minister should resigned .
#13 by Dap man on Thursday, 26 November 2009 - 7:08 am
“We have this building for free and in return we give them a piece of land.”
This Minister is speaking like a ketua kampong from Kelantan. What makes him think that we Malaysians are that stupid that the government is getting RM 628 million as a gift.
Walk into any sale. A RM20.00 T-shirt is suddenly prized at RM 40.00 with a ‘buy one free one’ poster on the counter.
Is the government in the ‘buy one free one’ business?
#14 by Godfather on Thursday, 26 November 2009 - 7:56 am
And I’ll bet the RM628 million doesn’t stop there. There’ll be last minute changes to the building scope and specs, and there’ll be last minute additions, which will drive the cost of the building to over RM 1 billion, and all these additional costs will have to be paid by the gomen to NAZA.
Oi, Finance Minister II, the rakyat are not stupid. UMNO’s standard modus operandi is clear for everyone to see.
#15 by Bigjoe on Thursday, 26 November 2009 - 8:17 am
Here is some simple math to verify the truth. If a project has a GDV value of RM15 billion. The profit is basically 30% on average RM5 billion. This means the cost of the project should be RM 10billion. Of that RM10billion, land cost in prime land of KL should average 30% (in fact good builders can do it at 50%) which comes down to RM3billion at least. THAT is the MINIMUM value of the land…
#16 by Jeffrey on Thursday, 26 November 2009 - 8:22 am
//This is nothing but a public-private partnership//-Datuk Mustapa Mohamed.
On the contrary, it is everything. It is who the govt partners. There is no competitive bidding and open tender – crux of LKS/Tony Pua’s contention. Govt is therefore not getting the best possible deal in giving up nation/public assets. The cronies of those in power do. Govt’s MATRADE getting RM628 million’s worth of building in exchange for 62.5 acres of land valued in 2007 as RM197 million, ie RM70 per square foot? That cannot be true Unconverted land for Hartamas/Duta area is already over RM100 per sq ft. In government supported deal like this, the govt will alienate the land under category of land use “commercial” which land will fetch a market value of anything RM350 to RM500 per sq ft or RM1.5 billion (not counting GDV of RM15 billion). NAZA has a sweet heart deal. As HJ Angus says the govt is giving away RM922m, difference between RM1.5 billion and RM628 million’s worth of building!
This is not the first time.This Govt partnering private sector (read cronies) – “land for building scheme” – is refined to state of art since Tun Dr Mahathir/Tun Daim era. In 2004/5 students, teachers, conservationists protested demolition of Bukit Bintang Girls School in heart of Bukit Bintang KL (BBGS) – to no avail. (DAP didn’t object that one?) They gave BBGS & Weld Road Swimming Pool to Malton’s subsidiary to erect what is present day Pavilion Shopping Centre. Can one imagine the value of that 12.6 acres in heart of Bukit Bintang? In exchange for BBGS/Weld pool, Developer Malton built a smart school in Cheras and DBKL office tower (next to Pavilion) free. The scope of govt support extended to redirecting traffic flows of Jalan Bukit Bintang, Raja Chulan & Sultan Ismail to ensure easy access and exit out of Pavilion, so that it does not suffer problems faced by Berjaya Times Square! You have to find out on your own why Malton was the favoured developer!
The larger picture is what Barry Wain described in soon-to-be launched book ‘Malaysian Maverick: Mahathir Mohamad in Turbulent Times’ – that RM100 billion lost since that era in this paradigm of privatization of public assets/profits/reward & socialisation of risks/losses. Classic examples of bail outs – PKFZ where socialisation of risks/losses is prominent. This is because there’s no proper feasibility studies, very optimistic forecast, inflation of costs, easy credit and incompetent people running these crony deals. This is camouflaged by Malaysia Boleh and appeal to national pride that we need to seen beating others (in appearance) : hence Petronas 88 floor Twin Towers have spires beating 110 floor Chicago (Sears) Willis Tower; Pavilion was touted our answer to Orchard Road, Ginza and Fifth Avenue etc and our MATRADE Expo will now challenge Singapore Marina Bay Sands. I ask: why don’t you get the Ringgit stronger vthan the Siong Dollar, where it counts? The rest is hubris.
Yet not all such projects are failures, some of these integrated development are successes where although there was privatization of public assets/profits/reward, there was no apparent socialisation of risks/losses (unless one thinks taking over of Twin Tower/KLCC by Petronas is a losing venture for rakyat as Petronas is stakeholder for Malaysian heritage). Pavilion, in spite of a mega syndicated loan, faced the same cost overruns but somehow it was lucky to get international property investor Kuwait Finance House to take up 49% stake to finance it.
They’re not likely to budge on NAZA so we can only hope that if there were privatization of public assets/profits/reward, there won’t be concomitant socialisation of risks/losses.
#17 by undertaker888 on Thursday, 26 November 2009 - 8:33 am
so when will the matrade roof collapse? Let’s see. Assuming It will be completed in mid 2013, assuming again it will ever be completed, assuming again apocalyse will not come in 2012, I will give it about 6 months during the rainy seasons in December of 2013.
Assuming it will be like pkfz, the sum will be blown out of proportion to 4billion and another 100 million to fix the roof. total cost is 4.1billion of, sadly, rakyat’s money AGAIN.
Free? Mustapa?NEP is free.
#18 by Jeffrey on Thursday, 26 November 2009 - 8:44 am
Sorry typo – “…Ringgit stronger than the Singapore Dollar…”
There’s something we need understand. Why is it the government now moves to guarantee RM3.4 billion in bonds issued by turnkey contractor Kuala Dimensi Sdn Bhd (KDSB) to fund the debt-ridden Port Klang Free Zone (PKFZ) project???
It matters not that what Chan Kong Choy issued was a mere support letter and not a guarantee. It would be made one (retrospectively) for so long as any support letter or any other instrument, even not a guarantee within purview of Finance Procedure Act is relied upon by banks, financial market and investors to deal with govt agencies like PKA and cronies deals.
It is the heart of the crony capitalism in this country that the govt honours and be seen to honour all govt supported deals. It suffices if that honouring is moral and not necessaily based on legal obligation. Going into technicalities – guarantee or no guarantee – is a waste of time as it not connected to this crux of the motive/issue that govt need to be seen to support all deals related to govt agencies and govt’s favoured partners in private sector…..
If they do not do that, there won’t be money raised from private sector, banks and financial market, and that being the case no money politics and no opportuinities for politicians or political parties to make money from power wielded. Then they may as well go in to business instead of politics. It is as simple as that.
#19 by K S Ong on Thursday, 26 November 2009 - 8:50 am
Whatever credentials he has, his statement shows that he is one or he takes us all as fools.
How could an exchange be considered as free?
Based on his logic, we got NSE for free too, but at what costs to the government and public over the years? As someone mentioned, PKFZ started with something similar in terms of ‘good deal’ and look at it now!
With such a huge area which the government will be maintaining, it is like getting a Ferrari for free and you are forced to use it daily. Look at the costs of maintaining Putrajaya. If critics are not allowed to use whatever buildings they criticize, then Putrajaya shall remain with BN forever!
He cannot see the difference between oppositionists criticizing projects for lack of transparency and fairness or opposing the project to no avail because BN has the mandate to carry through, and the rights to use of those public properties.
If what he said was true about the good deal, will he be prepared to open it to others? I am sure, and most people would agree, that there are much better offers from better companies.
Being the first and therefore the ‘only’ company to have come out with the proposal
and therefore accepted, must be the joke of the year. But we are getting used to such jokes coming from ministers of late.
#20 by k1980 on Thursday, 26 November 2009 - 9:17 am
umno has been getting lots of free lunches ( not to mention free breakfasts, dinners and suppers ) since its inception. Example: RM500 million commission for the Scorpene subs
#21 by Bigjoe on Thursday, 26 November 2009 - 9:21 am
BOTTOM LINE is.: NO REFORM (independent judiciary, police) NO GST…
#22 by taiking on Thursday, 26 November 2009 - 9:27 am
Nothing wrong with the costing and the projections in terms of value/worth. I just have to assume this for the time being until more info on the project (yeah wot about transparency?) trickles into the public arena (raja petra your help is needed here). So trumpeting the benefits from these facts (i.e. costs and projections) will not do. For all we know, as KS Ong (comment #19) said, the good deal could well sour after several years. I am negative. But I shall try to put my negativity aside for a brief moment and say that that is not the issue here. Certainly not at the moment. Not yet. The concern now is this. It is about the people (i.e. naza) who were entrusted to develop the expo and the clouded way in which they were engaged. Free buildings it seems. Based on the same costing and projections couldnt other property-development company handle the project with the same result ie free buildings to matrade?
#23 by HJ Angus on Thursday, 26 November 2009 - 10:16 am
I believe many do not object to public/private JVs but the secret manner in which the project is hatched.
After all, a convention center does not involve rocket science like some patented cloning facility and many Malaysian companies are capable of delivering such a project at maximum benefit to the government and taxpayers(sorry, I do not include promoters).
To me, a basic system of accountability and transparency is lacking in government.
http://malaysiawatch4.blogspot.com/2009/11/malaysiakini-reports-early-christmas.html
#24 by SENGLANG on Thursday, 26 November 2009 - 11:03 am
I always tell my sons, if some one offer you something free please run as fast as you could. When ever something free crop up that is when a scam start. Remember the tactic use in the scrap and win free prices?
What is relevant here is, any one believe in the Minister reply that the MATRADE center is free gift free NAZA? Another minister with the head on but with no brain. In this world there is nothing free.
We are talking about giving out free land. Now this genuinely free this time because only government of the day can offer free. But when you look deeper it is no free either. Instead of saying free we rather say it does not involve cash out lay. Anyway, the prime land has huge value on it and this is how NAZA will get it for free in the real sense.
Next, whether the MATRADE center can have that 628m value is for all to guess and nobody can know and OSA can always be used to say the pricing is OSA . So we can’t really know how much it cost. It simply come free a minister with the head on but no the brain.
So NAZA is reputable developer? Any taker? Left it to the Wiseman on street to judge.
Malaysian has short memory right? Remember the MATRADE that was already there. What has happened after all the money gone with the bankrupt developer? It that MATRADE no big enough or simply they need another project to milk money for the next GE? This is the most important question to answer.
#25 by House Victim on Thursday, 26 November 2009 - 11:59 am
#6 by boh-liao on Thursday, 26 November 2009 – 12:32 am
1. Why He has to tell the Malaysian in USA and not in Malaysia that Malaysia is ready to work for a better world?
Yet his was there to “Guarantee” PKFZ bonds (1b USD=3.4b RM) which is full of muds!!
http://www.themalaysianinsider.com/index.php/business/44494-malaysia-says-will-guarantee-around-us1b-pkfz-bonds
2. Can MOF guarantee any bond when the major, if not the whole, part of the Project was not even approved by the Parliament?
3. Since MOF approved 4.632b soft-loan in July 2007 and only agreement of 920m was signed by PKA in 30.6.2008, balance 3.712b. Does that meant the Government has to issue bonds in US before they can provide the soft-loan?
4. The 3 “Minister’s letters” had cause the issue of 4.6b bond in Malaysia, the MOF is now saying that they will honour it!
a) Can MOF honours those 4.6b bonds?
b) Is the Government trying to issue bond to honour this bond?
5. Since the project has not gone through the proper procedures in the Parliament, at those beyond the initial 1.8b, the Government is beyond the Power to saying anything beyond 1.8b, even if that 1.8b is properly approved, but doubted!!
This shows that the Creditability of the Government is down to earth in Malaysia. And, they continue to override the limitation or the legitimacy of the PKFZ project.
The Parliament should issue an Emergency Warning to the Cabinet!!
#26 by Winston on Thursday, 26 November 2009 - 12:24 pm
There may still be many who are unaware of all these scams.
I think that the PR should start launching campaigns to bring people’s awareness to what is happening in this country.
The earlier this is done, the better.
#27 by SENGLANG on Thursday, 26 November 2009 - 12:42 pm
Kononnya ini lah cereta.
Dari budak kereta jadi Maharajarela AP. Dari Generasi ke Generasi, kini digelar pula Pemaju yang Handal kerana TTDI Jaya.
Apanya AP minta apanya didibagi Kerajaan. Kini dapat pula tanah yang berrjuta-juta pula.
Kerajaan terus bagi kerana kononnya kata Menteri berkepala tapi tiada Berotak, “sama sama kita beruntung atas prinsip Public-Private JV punya”.
Katanya pula, Menteri berkepala tapi tidak berotak, “kita dapat MATRADE FREE berjumlah 628 juta”
Tetapi apa yang nak ditanya, Jika FREE mengapa tanah sudah dibagi? Betulkah tanah di Malaysia free? Itu yang nak ditanya-tanya? Siapa boleh beri jawab? Itu tidak kesah, kerana telah dijawab oleh YB Menteri berkepala tapi tidak berotak.
Betulkah MATRADE itu 628 juta? Ini jaga ditanya kerana OSA sudah siap berada.
#28 by k1980 on Thursday, 26 November 2009 - 1:28 pm
//Can MOF honours those 4.6b bonds?//
Once GTS is imposed, RM4.6 billion is peanuts
#29 by taiking on Thursday, 26 November 2009 - 1:41 pm
Matrade building took (wot?) 9-10 yrs to complete. And despite the unduly undue delay, the same contractor was still kept on-board. Why? Beats me! I dont think we have quite forgotten that one. So dont blame us for being jumpy on this new one.
#30 by i_love_malaysia on Thursday, 26 November 2009 - 1:47 pm
Yes, it is free!!! The terms and conditions are as follows:-
1. NAZA TTDI can issue unlimited bond with letter of support issued by the minister of International Trade and Industry as and when required
2. There is no limit to VO.
3. International Trade and Industry Ministry or MoF will take over the project if NAZA TTDI could not complete the project due to unforseen circumstances and NAZA TTDI will be refunded in full plus interest & will keep the land.
#31 by i_love_malaysia on Thursday, 26 November 2009 - 1:56 pm
Singapore govt lelong their land and the highest bid is always higher than the latest market price!!! Here we exchange the prime land for peanuts!!! We dont have to ask Ah Kui to know the answer for this practice!!! If you check the latest director(s) appointed to NAZA TTDI and you will know why!!! May be they are not doing it too obviously, just some bank transactions will do!!!
#32 by frankyapp on Thursday, 26 November 2009 - 3:03 pm
Sen wise,ringgit foolish,this label should given to the minister.
#33 by Godfather on Thursday, 26 November 2009 - 4:18 pm
What is a Public-Private Partnership (PPP) ? It is nothing more than a form of financing which allows the government to share in certain risks and benefits with the private sector by allocating the risks (and therefore the benefits) to those best equipped to handle and manage these risks. Hence if there is a need to build a new prison, the government could allow the private sector to build the new prison on a less crowded location, transfer the prisoners from the existing prison once the new prison is completed, and then the developer gets to re-develop the site of the old prison.
If there is a need for a new sports stadium, then the government could invite builders to build the new stadium with ideas on how to minimise the cost of the new stadium – e.g. service apartments, car parks, water facilities, restaurants, etc. This is what is happening for the new national stadium in Singapore – a PPP where the government literally gets a new stadium for free.
What Mustapha and his UMNO friends forget to tell you is that the PPPs we witnessed in Singapore, Australia, Canada, UK and the US have all been awarded based on OPEN TENDER. The tender that minimises public sector contribution wins the deal.
The NAZA case isn’t about them being a developer, or having the best ideas. It’s about bailing out a bumiputra company mired in debt, and which owes the Ministry of Finance hundreds of millions in unpaid import duties and levies. It is downright blatant, stupid and irresponsible – but then it’s the standard operating procedure for UMNO.
#34 by limkamput on Thursday, 26 November 2009 - 4:18 pm
There are simply too many questions on this project. Are we creating another PKFZ? Read my lips, it will be another white elephant.
If there are no tender, how do we know the exhibition centre is value for money? How do we know RM628 million is not too expensive or cheap. What about conditions and terms on variation order? Yes the building is RM628 million now. What is the possibility of cost padding through variation orders? Half way through, the building could cost RM1.5 billion or RM3 billion, who know. Who will be paying if cost escalates either deliberately or through unforeseen circumstances? I may sound negative, but is this not what happened to most of our projects?
Who said the government is getting the building free? The exhibition centre is paid for in exchange of state land that is dubiously prized.
Who is NAZA TTDI? What is so special and capable about them? Didn’t they grow filthy rich through thousands of APs given to them each year for umpteen years? So after APs, it is now premier state land. When is this bunkum going to end?
#35 by limkamput on Thursday, 26 November 2009 - 4:23 pm
PPP is usually for projects that are able to generate revenue for their own upkeep. Do you think this exhibition centre will be self-financing? If you ask me, I must say my ass. It will be another big hole in our annual operating budget.
#36 by HJ Angus on Thursday, 26 November 2009 - 4:32 pm
“When is this bunkum going to end?”
The day that Malaysians relegate the BN to the opposition bench; hopefully in the next elections.
The Minister should be warned that his award of this project will be the first to be investigated for improper dealings and possibly corrupt practices.
#37 by Winston on Thursday, 26 November 2009 - 5:10 pm
They are robbing the country blind.
And the opposition is rendered helpless by completely skewed laws passed by the BN.
Are we to wait until they have parcelled out the whole country to their cronies?
#38 by yhsiew on Thursday, 26 November 2009 - 5:35 pm
Mustapa should not be so naive calling the swap “value for money”. He must be aware that in any swap deal the party that initiates the swap normally has an undisclosed intention.
Mustapa should study carefully what is Naza TTDI’s true intention of offering the deal. What makes Naza TTDI so keen in offering the deal?
#39 by HJ Angus on Thursday, 26 November 2009 - 5:44 pm
“What makes Naza TTDI so keen in offering the deal?”
I would prefer to phrase this in a different question:
What makes Mustapha so keen to jump into this trade-off?
NAZA is definitely getting the better deal – No it is not a good deal – the taxpayers are getting ripped off!
#40 by Bigjoe on Friday, 27 November 2009 - 9:16 am
Tidak ada Reformasi, Tidak ada GST. Tolak Barang Naik…
#41 by cskok8 on Friday, 27 November 2009 - 8:06 pm
Do we need another convention centre in Klang Valley?
PWTC
KLCC
Sime Darby
Putrajaya
Mines
Sunway
Many 5 star hotels
What is the occupancy rate?
#42 by monsterball on Saturday, 28 November 2009 - 5:02 am
NAZA takes the land worth RM1.5 billion to a bank to borrow RM628 million…to build it up…and when finished worth RM15 billion.
All Banks will approve NAZA’s loan….which means NAZA need not take out one sen to make billions.
If under open tender….the cat is out of the bag. .and huge guys like Yeoh Tiong Lay or Genting Group..or even Sime Darby….with proven lots of billions in their banks..will win the tender.
So no open tender….another UMNO crony will do the dirty job.
#43 by ktteokt on Thursday, 3 December 2009 - 7:06 pm
That’s exactly what will pour out from an IDIOT’s mouth!!!!!!!!!