No hanky panky in PKFZ, says Chan

Transport Minister Datuk Seri Chan Kong Choy has denied allegations that the Port Klang Free Zone (PKFZ) project is a failure.
In a written answer to Lim Kit Siang (DAP-Ipoh Timur) in the Dewan Rakyat (Parliament) today, he said despite the PKFZ having only begun operations last Nov 1, it had attracted 30 investors with investments totalling about RM725 million and offering 809 jobs.

“There is no hanky panky involved in the implementation of PKFZ. This project was approved by the government,” he said.

Lim had asked why the problems and cost overrun involving billions of ringgit were not monitored despite warnings from the Attorney-General’s Chambers and whether there is any bailout of the RM4.6 billion spent on the project.

Chan said the project was divided into two portions – land acquisition and infrastructure development.

He said the land acquisition cost was RM1.088 billion and with the deferred payment period of 15 years at an interest rate of 7.5%, the cost would amount to RM1.807 billion.

“This cost also involves initial work carried out, such as land reclamation, drainage, roads, bridges and other utility infrastructures,” he said

He said the development of infrastructure facility involved a cost of RM1.845 billion covering construction of office buildings, light industrial units and other interior infrastructure construction.

“Thus, the overall cost of the PKFZ, taking into account the land acquisition and cost of infrastructure development, interest cost of 7.5%, deferred payment, 10% professional fee and work changes limited to 20%, the cost amounted to RM4.632 billion,” he said.

Source: The Sun

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No hanky panky in Port Klang Free Zone