PKA does not have the funds to meet its obligations to KDSB. Considering this project is of national interest to enhance the competitiveness of Port Klang, MOF decided to give a 20-year soft loan in the amount of RM4.632 billion. This amount, to be drawn down in tranches, has since been revised to RM4.382 billion as PKA has paid KDSB RM250 million from its own funds in 2007. The interest rate is set at 4% per annum.
Why did the MOF give a soft loan to PKA to finance the PKFZ project? Can you explain about the interest rates?
Updates
2010-01-05: Press Release
