Putrajaya ditches Chinese US$1b Pudu Jail plan for local developers
By Jahabar Sadiq, The Malaysian Insider
KUALA LUMPUR, Oct 5 — The Najib administration has dropped a mainland Chinese developer’s US$1 billion (RM3.2 billion) redevelopment plan for Pudu Jail in favour of splitting the eight-hectare prime land into parcels to be developed by mainly Bumiputera companies, sources say.
The Malaysian Insider understands that Pudu Jail land owner, UDA Holdings Bhd, has been instructed by its shareholder, the Ministry of Finance (MOF), to set up a special purpose vehicle (SPV) to oversee the redevelopment and carve up the land with two parcels to be given to Bumiputera companies and one to a non-Bumiputera firm.
“UDA Holdings received a letter from the MOF in July rejecting the Chinese bid despite a majority board decision to recommend their plan,” a source told The Malaysian Insider, referring to China’s Everbright International Construction Ltd’s bid.
A source said the eight-hectare piece of prime land will be split into three parcels under different developers. — vitruvianman.blogspot.com pic
UDA Holdings chairman Datuk Nur Jazlan Mohamed confirmed the MOF directive but declined further comment. Prime Minister Datuk Seri Najib Razak is also the Finance Minister with Datuk Ahmad Husni Hanadzlah as the Second Finance Minister.
It is understood that the Pulai MP chaired an UDA Holdings board meeting yesterday to work out the terms of reference for companies interested in redeveloping the site, which became Kuala Lumpur’s main prison from 1895 until its formal closure in 1996.
“The board is working out the terms for the new bids and it will take some time,” another source told The Malaysian Insider, adding the requirements were set by the MOF.
UDA Holdings had recommended Everbright as its partner for the redevelopment after a shortlisting process had been completed with Everbright’s bid providing an integrated commercial and transport hub worth RM2 billion, three times the value of the land. The other bids from local companies were not impressive or gave similar returns, a source said.
The board had planned an integrated commercial and transport hub as the site is near the proposed 100-storey Warisan Merdeka tower, the Jalan Shaw Light Rail Transit (LRT) station, the planned Klang Valley Mass Rapid Transit (MRT) and UDA’s own Pudu Sentral bus terminal.
