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Dialogue session on stalled project hits a snag

07/03/2009 The Star By ALLISON LAI

MALACCA: Efforts by the state to revive the stalled RM1.4bil Pulau Melaka island reclamation project off the Bandar Hilir coast, hit a snag Wednesday when liquidators and state officials failed to reach a settlement.

Answers needed: Some 500 property buyers at the dialogue session with the state and liquidators over the stalled project.

Some 500 over property buyers affected by the project turned up for a two-hour dialogue session with the state officials and liquidator, Ferrier Hodgson MH Sdn Bhd, to determine their status following the seizure of the island by the state last Nov.

State Housing, Rural Township and Project Revival committee chairman Datuk Abdul Ghafaar Atan said the state’s move to seize the project was being challenged by the liquidators.

“We had seized the project based on the failure of the liquidators to fulfil their responsibility in settling the land premium.

“They are now appealing and we will have to wait for the outcome of the court to see the next course of action to be taken to revive the project,” he said when met after the dialogue held on Wednesday.

He noted that it would take an estimated RM60mil to revive the project and the state would find ways to ensure that it was completed in the best interest of the buyers.

However, several property buyers voiced concern over the long delay and possibility of increase in cost for the projects to be revived.

Launched in 1996, the project involved mixed development on two man-made islands off the coast here.

Although recording over RM190mil in sales, only one of the 45ha island was reclaimed and partially developed before the project stalled.

In 2006, the project was revived with Phase I, Phase II and Phase III targeted for completion within 18 months.

A total of 521 out of 612 four-storey shoplots had been sold under Phase I while 589 of 762 similar units and 85 apartments were sold under Phase II.

Phase I and Phase II are 90% and 85% completed respectively while the apartments under Phase III were completed but the

plumbing, electrical and sewerage works had yet to be completed.

Later, the state seized the project and took over control of the island on July last year.

Meanwhile, Ghafar said the proposed RM200mil Arab City development project on the island did not involve land under the stalled project.

The Arab City project is being carried out on the one-sixth of reclaimed land that initially belonged to the state government, he said.

In a related matter, Chief Minister Datuk Seri Mohd Ali Rustam officiated the launching of the Arab City project that will see the development of a two-storey complex on 9ha site.

He said the complex would house Arabian themed restaurants and cafe including bazaars offering genuine Arabian goods.

He added the complex is one of two others being developed by Arab investors, Golden Corporate Heritage, here.


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