Malacca to revive RM1.4b reclaimed island scheme

18/11/2008 The Star By Chen Pelf Yeen
 

MALACCA: The state government has seized the RM1.4bil Pulau Melaka reclaimed island project from its receivers following their failure to settle land premiums despite being given ample time to do so.

Chief Minister Datuk Seri Mohd Ali Rustam said the state would revive the stalled project to protect the interests of the 1,200 purchasers.

“We are calling for a meeting in December with the purchasers and the banks that had provided the loans to them.

“The state is looking at ways to revive the project,” he told reporters here after chairing the state executive council meeting recently.

He said the meeting would determine if there was any balance from the bank loans that could be used to complete the project.

He said, from Dec 1, the entry to Pulau Melaka would be controlled by the state instead of the developers to facilitate those wishing to perform prayers at the RM10mil Masjid Selat Melaka built on the island in Nov 2006.

Mohd Ali also said that Chief Minister Incorporated would construct a rest and recreation centre, including restaurants, on a portion of the island reserved as state land.

The RM1.4bil project, launched in 1996, involved mixed developments on two man-made islands off the Bandar Hilir coast.

Earlier this year, the project was revived by court-appointed receivers with Phase I, Phase II and Phase III targeted for completion within 18 months.

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

Phase I and Phase II were 90% and 85% completed respectively while apartments under Phase III were completed, he said, adding that the apartments could not be occupied as the developers were yet to complete plumbing and sewerage works.