The Pudu Jail redevelopment project which is expected to be completed within the next four to five years will not utilise government funding, Datuk Nur Jazlan Mohamed (picture) has said.
The UDA Holdings Berhad chairman explained today that the project will be financed entirely by UDA Holdings’ strategic business partners.
“The strategic partners of UDA Holdings Bhd who have chosen to be a part of this project will need to use their own financial capabilities to generate development to ensure that the project is completed within schedule.
“The Bukit Bintang City Centre (BBCC) project is on a large scale and requires huge financial funding with development costs alone expected to reach RM3 billion to RM4 billion,” said Nur Jazlan in a statement.
The Pulai MP said that was the reason why UDA Holdings Bhd has been “careful” in issuing strict conditions to all 11 companies to not mortgage the 7.76 hectare piece of land as a means of funding.
“UDA Holdings Bhd wants to minimise financial risks by cooperating with strategic partners who will act as investors and not contractors.
“The strategic partners also have to bear full responsibility to the marketing of their assets and UDA Holdings Bhd will not carry that role, and will only focus on assets that we own — an estimated RM2 billion and yearly returns to the company amounting to RM300 million will put the company’s finances back on track,” said Nur Jazlan.
He reiterated that UDA Holdings Bhd would prioritise “qualified and credible” Bumiputera contractors, and that Class B contractors and those below will be given a shot at joining the project.
“Through this approach, UDA Holdings Bhd will be the key driver of the BBCC project, and will have the final say in all forms of development assets owned, including contracts that will be offered,” Nur Jazlan added.
Nur Jazlan has been accused by Penang Umno chief Datuk Musa Sheikh Fadzir and Umno’s Utusan Malaysia of ignoring Bumiputera interests in handling the project.
He has stated that he is ready to release the names of the companies currently bidding to be part of the BBCC project, but said that only one of the 11 companies involved was a fully-owned Bumiputera company.
