By Asrul Hadi Abdullah Sani - The Malaysian Insider
The new Matrade centre is good value for money, says Mustapa. — file pic
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.”
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