Friday, September 16, 2011


dari blog :

This project initiated by PR Penang state government is a good project but it comes with dubious and smelly execution.

I concluded the contract is one-sided contract tilted to developer, Eco Meridian Sdn Bhd (EMSB), a wholly owned subsidiary of SP Setia after a scrutiny on its contract.

The project estimated cost is RM300 million, with RM50 million free money from MPPP.
The concessions given by MPPP to EMSB is too lucrative to be believed. For an example, 1500 extra housing units are granted to SP Setia can rake in RM700 million profits for the company. Its ROI details can be found from here.

The shocking fact is MPPP got no profit-sharing from RM50 million investment. This is another BN-like contract under PR government.Besides, there is no EIA study on its impact on traffic flow and environment before the contract was sealed.

This is so-called transparency, but without accountability and competency, a mockery of LGE’s CAT “Competency, Accountability, Transparency” slogan.

Repost my posting in Anil’s blog.
MPPP or LGE (LGE overstepped MPPP) said three companies have bid for the project.
Did LGE show you the other bidders’ offers when you met up with MPPP and LGE some time ago?
IF LGE is talking transparency, he should also list down two other biddings (the companies name can be omitted) for people to see SP Setia is truly the best bidder or not.
Display a signed contract for public to read is not transparency, is a political stunt.
In the end, the whole sPICE bidding and tender process is no different with BN pirate no open tender system because people still in the dark on how a contractor was selected and why RM50 million public money injected for a private BOT project.
More shocking revelations by BN opposition about sPICE after the agreement was opened for public reading.

- 3.1 acres land sold to developer at merely RM100 per sq ft which is much below market price of RM300 per sq ft. Potential losses are estimated at RM 27 million.

- The developer is allowed to build 450 units max 650 sq-ft medium cost house with minimum selling price of RM 72500. The land is supplied by state government. Excepted income for developer is RM10 million

This clause is designed to protect developer, not the rakyat.

- 1500 extra density given to developer to rake in extra RM450 million on land utilization alone. The project profit is estimated at RM700 million by using present value.

Public fund for sPICE : RM 50 million
Losses from the side concessions unrelated to sPICW :  RM737 million
Number of PR White Elephant Project monitored : 2
Total accumulated cost/losses: RM 792 million