KUALA LUMPUR, 28 May 2009: PricewaterhouseCoopers Advisory Services (PwCAS) was appointed by Port Klang Authority (PKA) to conduct a review of the Port Klang Free Zone (PKFZ) and Port Klang Free Zone Sdn Bhd (PKFZSB).
The report was made public on 28 May.
Project costs escalation
In its review of the Port Klang Free Zone Project and Port Klang Free Zone Sdn Bhd, PwCAS said the project outlay for the PKFZ has escalated from RM1.957b to RM3.522b, excluding interest cost. Including interest cost, project outlay increase to RM7.543b.
PKA was unable to fund its obligation to KDSB from its own resources when the first scheduled payment was due in 2007. PKA secured a 20-year soft loan of RM4.632 billion from the Ministry of Finance (MoF), of which RM4.382 billion was available for drawdown. This loan would impose an additional interest cost of RM2.506 billion resulting in total project outlay of RM7.453 billion.
Read more here.
This article first appeared on Thursday, 28 May 2009 in www.theedgemalaysia.com. Used with permission.