The state government has offered to build the retaining wall costing RM1.5mil along Jalan Paya Terubong in its effort to revive the stalled Taman Terubong Indah (Majestic Heights) Phase 1 project.

Chief Minister Tan Sri Dr Koh Tsu Koon said the state could assume the responsibility of building the wall because it was part of the Jalan Paya Terubong road-widening project.

"The road-widening project was a condition imposed on the developer," he told reporters at the Majestic Heights Purchasers forum at Geodesic Dome in Komtar yesterday.

Dr Koh said the state could justify paying for the retaining wall because part of the road belonged to the government, but not for any other structural work which should be the developer's responsibility.

With the subsidy, he added, Phase 1 purchasers could now opt to pay less than RM5,000 each to complete the project on their own.

"If the buyers are willing to pay less than RM3,500 for rectification work and RM1,500 for strata title, construction work can start immediately once a new developer takes over, pending the winding up of Majestic Heights Sdn Bhd," he said.

Dr Koh added that the state government had rejected the revised rescue plan by a developer which included construction of 6,000 more low medium-cost (LMC) units on the remaining land as a trade-off.

"It was found that the plan would lead to very serious over-crowding, traffic congestions and high risks from substantial cutting and filling of steep slopes," he said.

The state, Dr Koh added, would only allow a maximum of 3,899 LMC units and commercial lots to be built on the flat terrain adjacent to Majestic Heights to cross-subsidise the completion of the project.

Phase 1 (comprising 1,557 units) and Phase 2A (370 units) should have been completed in 1997; Phase 3A (569 units) in the middle of last year; and Phase 2B (542 units) in March this year.

Dr Koh said the state goverment would continue to work closely with the Ad-hoc Committee for Majestic Heights Purchasers of the remaining three phases on how to revive their projects as soon as possible.

Also present at the forum were Bayan Baru MP Wong Kam Hoong, state executive councillor Dr Teng Hock Nan, Paya Terubong assemblyman Dr Loh Hock Hun and Padang Kota assemblyman Teng Chang Yeow.