IWH CREC can bid for Bandar Malaysia again — PM's Department

KOTA KEMUNING (May 16): IWH CREC Sdn Bhd is allowed to bid for the Bandar Malaysia real estate project again as long as the offer is right for the Malaysian Government, according to Minister in the Prime Minister's Department Datuk Seri Abdul Rahman Dahlan.

Abdul Rahman said Prime Minister (PM) Datuk Seri Najib Tun Razak had indicated that the Government was soliciting new bids for the planned Bandar Malaysia project on a 194ha (486 acre/21.17 million sq ft) tract within the old airport site in Sungai Besi here because the land's value had increased.

"During his trip to Beijing, the PM has made it clear that the new consortium can include the previous consortium players. They can still participate, as long as the numbers are okay.

"The deal was never a flip flop, there were certain conditions not fulfilled by the previous consortium, so the Government terminated the deal, legally, and called for another tender, which is beneficial to the country as the value (of the land) has now appreciated a lot," Abdul Rahman told reporters here today during Gamuda Bhd's Tunnelling Training Academy graduation ceremony.

Najib concluded today his visit to China since last Friday (May 12). During his China trip, he attended the Belt and Road Forum in Beijing and visited Alibaba Group Holding Ltd's headquarters in Hangzhou.

In Malaysia, Bandar Malaysia is in the spotlight after Malaysian Government-owned TRX City Sdn Bhd alleged on May 3 this year its planned sale of a 60% stake in Bandar Malaysia Sdn Bhd to IWH CREC was "null and void with immediate effect".

The Government via the Finance Ministry owns TRX, a former unit under 1Malaysia Development Bhd (1MDB). The Government also owns 100% of 1MDB. Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd jointly own IWH CREC.

TRX alleged that "IWH CREC failed to meet the payment obligations" under the share sale agreement. In response, IWH CREC said TRX's allegation was "unacceptable" because IWH CREC had fulfilled "all the required payment obligation" under the agreement dated Dec 31, 2015.

Today, Abdul Rahman said the termination should be viewed separately from the Government's relationship with IWH CREC, which is linked to Tan Sri Lim Kang Hoo.

Lim owns a stake in IWH. He is also a common shareholder in Iskandar Waterfront City Bhd (IWCity) and Ekovest Bhd.

Abdul Rahman said: "Tan Sri Lim Kang Hoo, IWH, they are still having a lot of work with the Government, it is just that the conditions (for Bandar Malaysia deal) were not fulfilled, but the PM has stated very clear that the future consortium might include previous consortium players." — theedgemarkets.com

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