KUALA LUMPUR: The government will make annual lease payments to a developer over a 25-year concession for the RM4 billion Kota Madani project in Putrajaya.
According to Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa, the Public-Private Partnership Unit (Ukas) is finalising the financial structure for the project.
Dr Zaliha said the exact payment amount would be decided after Ukas and the developer complete discussions on the project’s final development value, maintenance costs, and financial framework.
The government will not bear direct development costs during implementation through a Build, Lease, Maintain and Transfer (BLMT) model. Instead, she said, annual payments would only be made after the project has been completed and handed over.
She said this in a written reply yesterday to Datuk Seri Radzi Jidin, the member of parliament for Putrajaya, in the Dewan Rakyat.
Radzi had asked about the project’s overall development cost, the procurement method used, a breakdown of costs by infrastructure component and implementation phase, as well as the government’s annual payment commitments and the duration of the payments.
Dr Zaliha said the Kota Madani development covers a 102-acre site in Precinct 19, Putrajaya, with an estimated total cost of RM4 billion. The project will be developed by Putrajaya Holdings Sdn Bhd (PjH) and will feature 10,000 high-density residential quarters for more than 30,000 residents, vertical schools, and other public amenities.
She added that expenditure for the project would be scrutinised in detail by Ukas, and must undergo value management processes as well as approval procedures set by the government.
Other planned facilities include institutions for Technical and Vocational Education and Training (TVET), schools, health clinics, fire and police stations, a mosque, and financial institutions.
The first phase of development is expected to begin in September and be completed by the end of 2027.
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