In a nutshell, PKA entered into several development agreements and supplemental agreements with KDSB with deferred payment scheme at a rate of 7.5%. The table below summarizes these agreements:
|
|
Land |
Development |
Total |
||
| LA | DA | ADW | NADW | ||
|
Land & development costs |
1,088 |
1,216 |
510 |
336 |
3,150 |
|
Variation orders |
|
|
102 |
67 |
169 |
|
Professional fees |
|
122 |
|
40 |
162 |
|
Contracted costs to KDSB |
1,088 |
1,338 |
612 |
443 |
3,481 |
|
CSSB |
|
|
|
|
17 |
|
Contracted costs to others |
|
|
|
|
41 |
|
Total contracted costs as at 31/12/08 |
1,088 |
1,338 |
612 |
443 |
3,522 |
|
Interest cost on deferred payments to KDSB |
720 |
512 |
114 |
79 |
1,425 |
|
Project Outlay |
1,808 |
1,850 |
726 |
522 |
4,947 |
* All figures are subject to finalization of accounts, legal advice and possible legal challenge.
Notes:
LA= Land Agreements (LA1 on 12/11/02, LA2 on 27/3/04)
DA= Development Agreements (DA1 on
ADW= Additional Development Works (ADW1 on
NADW= New Additional Development Works (NADW on
Two major issues concerning interest cost to KDSB were highlighted in the PwCAS report that will need to be addressed in the next phase of PKFZ fact finding:
Issue 7: PKA could have reduced its funding cost had it complied with MOF’s recommendation to issue government-guaranteed bonds and develop the project in phases.
Issue 9: KDSB may have overcharged PKA for interest between RM51 million and RM 309 million in connection of the land purchase (already on special value for deferred payment).
