The Ministry of Finance (MOF) is expected to release the findings later this week of a special audit to determine the actual cost incurred in developing the Port Klang Free Zone (PKFZ) at Pulau Indah, Selangor
Pricewaterhouse Coopers (PwC) conducted the audit.
“We have written to the MOF. It is supposed to give us the report this week. We are still waiting for it,” said newly-appointed Port Klang Authority (PKA) general manager and chief executive officer Lim Thean Shiang at his first press conference in Port Klang yesterday.
He said he is unsure if PKA will hold a public meeting and release the findings of the audit as it has yet to determine what the terms of reference of the report entails.
But until PwC validates the PKFZ project’s cost against the deliverables, PKA will not make any payment to the turnkey contractor Kuala Dimensi Sdn Bhd, a subsidiary of Wijaya Baru Global Bhd.
Payment to Kuala Dimensi is divided into four tranches, with the second tranche payable at the end of this month.
Lim said so far payment of some RM260 million has been made to Kuala Dimensi, being the first tranche and the initial down-payment of 10 per cent for the project.
It was reported that until March 31 this year, PKA has paid RM238 million for land purchase and RM480 million for development work.
The PKFZ project has drawn criticisms from the public over its ballooning cost overruns, which grew to RM4.6 billion from an initial RM1.3 billion.
“The RM4.6 billion amount is just a ceiling (spending limit). We don’t think the project’s actual cost will surpass that,” said Lim.
Meanwhile, PwC has been appointed by MOF to conduct another audit of the 405ha facility, this time on its “feasibility and how to make it successful”, said Lim.
On the soft loans provided by the government for the PKFZ project, Lim said the government has agreed to give the loans but details of the repayment scheme are still being worked out.
“We are seeking to extend the term of the loan to 20 years and to lower the interest rate to two per cent from the government-approved four per cent,” he added.
