There was no flip-flop in the termination of the Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp (CREC) consortium’s 60 percent stake in Bandar Malaysia, a minister said.
Minister in the Prime Minister’s Department Abdul Rahman Dahlan said Johor-China consortium can also still bid to become the master developer of Bandar Malaysia.
“During his trip to Beijing, the PM (Najib Abdul Razak) 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,” Rahman was quoted as saying by The Edge today.
In 2015, the government sold off a majority stake in Bandar Malaysia to IWH-CREC as part of a 1MDB debt rationalising exercise.
The stake was terminated on May 3,, with landowners TRX City Sdn Bhd saying the consortium did not meet payment obligations for its 60 percent stake. The consortium had disputed this claim.
The Straits Times cited officials involved in the 1MDB debt restructuring as saying that the consortium had failed to prove they had the RM1.93 billion needed to relocate the Sungai Besi airbase.
The report also cited government officials as saying that CREC had failed to obtain approval from China’s financial regulators.
Since then, news emerged that a different Chinese firm – development giant Dalian Wanda – was eyeing the Bandar Malaysia project.
Najib had on Saturday paid a visit to Dalian Wanda, and expressed confidence in their ability to do great things in Bandar Malaysia.
However a deal has yet to be signed between the two.