So from RM50 million that the MPPP will have to pay for the proposed convention centre, it has now become just RM11.5 million, which we are told is a “minute sum” for RM300 million worth of facilities.
If this sounds too good to be true, it probably is. And very ‘creative’ too. We are now told the council will save RM25 million in upgrading Pisa and the Aquatics Centre and it will also receive RM13.5 million from the sale of the hotel land. Thus the MPPP would only have to stump up RM11.5 million instead of RM50 million.
In the first place, has the MPPP budgeted or planned RM25 million on upgrading work? If it hasn’t, then there is nothing to save. Secondly, whether or not we have sPICE, the MPPP can still sell the land.
I have some questions:
- From what I hear, there is a list of things that S P Setia expects from the Penang state government/the MPPP in relation to its proposal. What are these? They should be made known to us. What does S P Setia expect in return for undertaking this RM300 million project and operating it?
- Where is the financial projection for the next 10 years? What is the breakeven period and ROI for the project?
- Who will absorb any persistent operational losses?
- How many trees will be planted on the roof-top garden and the ‘people’s park’?
- How much is the maintenance cost of the garden and the complex?
- Will access to the roof-top garden be free? Will rates for the aquatic and sports centre be maintained?
- Are there adequate car parks? If sPICE is going to have a 600-table (or whatever) banquet hall plus a hotel, how many car park lots do you need bearing in mind our limited public transport system?
- Was this on the agenda of the last full council meeting of the MPPP? From what I hear, it wasn’t. Has the full council seen the financial projections and approved all this?
Someone who was involved in the public relations industry told me that when the KLCC concept was being promoted, it was initially touted as the ‘Hyde Park of KL’ – a place where people work, live, play etc . Thousands of trees were supposed to be planted. But if you look at the KLCC green space now, it’s hardly a Hyde Park, is it?
Another person who saw the sPICE slideshow says it brought back ‘fond’ memories of the PGCC project. That too was supposed to be a place where people work, live, play, etc. Zero-carbon and all that jargon.
The Penang state government should take care not to expose the MPPP to future losses or heavy expenditure from any proposed development.
Here’s an alternative idea that will not expose the MPPP to any losses. In fact, it will make the MPPP a tidy immediate profit. Why not sell the whole land outright to S P Setia at market value? The MPPP will make a lucrative profit, which it can use for its operations. S P Setia can then go ahead with its ‘iconic’ RM300 million sPICE design (of course after it succeeds in getting through independent environmental/traffic/social impact studies). As we are told it is a viable project, S P Setia can keep all the profit it makes from operating the place. The people will get their ‘roof-top garden’. Win-win-win, right? This way, everything will be at arm’s length.
So why do we need a ‘public-private partnership’ and 30-year BOT, in which the MPPP will have to stump out cash (whether RM50 million or RM11.5 million)?
Are we asking for too much details? Waiting for a sure win formula before starting a new venture is exactly why most of us are not successful businessmen. So let’s not fool anyone like we know what we are taking about here. Just beg to know!
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Who care how big the risk you want to take if the money is entirely yours.
Risk takers does not mean a good businessman, only those know to handle calculated risk make it.
Public fund is not for you to gamble in the business venture.
Do you know how many billions Malaysia lost in the forex games in 80s? Probably more than 10 billions, and no one except Mahathir knows the exact figure.
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And you speak for the public?
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I speak for the public fund.
If you cannot understand what is public and public fund, get lose before you incur more self-humiliation.
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Im so ashamed that I even try with the likes of you.
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Dear nkkhoo.
Don’t you know that when we say a RM2 company, we normally refer that as a company with a RM2 paid up capital?
So for the purpose of business name registration (just in case others may also make a bid for that company name), the registrant normally submits the names of 2 directors and a paid up capital of RM2.
Now where on earth did I mention that the registration of a company only needs RM2?
So please read well before you comment lest you make a fool of yourself here, even with your knowledge of business 123.
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Don’t make yourself a fool after you made a gross mistake with after the fact explanation.
“Normally” is your own imagination, no serious bidder will submit RM2 company except BN crony company.
LGE always chided BN for allowing RM2 company in the past, he repeated the same practice. He is a hypocrite.
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Dear nkkhoo,
You don’t need to spin to appear that you did understand what I’d written before you commented.
Simply calling me a fool doesn’t exonerate you.
The discussion thread is there for everyone to follow.
I mentioned “Eco Meridean may be a RM2 company today for the purpose of business name registration” to which you responded with “Are you ignorance or damn stupid to say register a sdn bhd company only need RM2?”
If you still do not see where you’ve gone off in a tangent or where you are lacking, I will no longer attempt to correct nor teach you.
My assessment is that your knowledge and understanding of business commonsense is appalling.
You are entitled to your pride, however misguided.
Good day.
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Let come out more silly explanations than admit you mistake.
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Some people here have commented that we should reserve our comments after seeing the financial projections and business plan. Some even said evaluation should be by experts.
Well folks, sorry to puncture another hole into your argument.
First of all, LGE should not put the cart before the horse. The financial projection and business plans must be done BEFORE the project is given any go ahead.
In case of PICC, right from the beginning LGE was adamant that he will go ahead and refused to listen to the loud protests from rakyat. Instead of convincing us he went around looking for contractors to build yet another white elephant. He seems to subscribe to the policy of “build first and ask questions later”.
The onus is on the Cheap Minister to convince on the viability of the project. And based on track records not many convention centers in Malaysia and in the region been making money.
With the kind of hopeless talent we have on this CAT government, I don’t think the sPICE has even a ghost of chance of making a profit. We have “cakap tak serupa bikin” CM who does nothing but talk while the exco in charge of tourism can’t even speak English fluently.
The mismanagement of heritage buildings, Kings of Tennis fiasco, falling FDIs, worsening traffic jams, etc, etc the state govt has shown that it doesn’t even have the capacity to manage even simplest and basic tasks, what’s more on something far more complex and challenging like making Penang a successful MICE destination.
I would also like to ask LGE on his strategic plan and vision for Penang in making Penang a MICE hub. It can’t just be building the sPICE and hoping for tourists to fall from the sky.
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Tony Pua will do a press conference on this project. Hope Anil will attend it to clarify all his concerns.
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Habib: Pls let us know details when and where Tony’s PC will be held. Hopefully in Penang where all the stakeholders are. I will surely be present.
The viability of the project is one issue. The other bigger issue which many have not questioned is the accountability and transperancy of the project which Penang ratepayers are stakeholders of. We are asking the state govt to reveal details of concessions and terms of the contract given to this developer. Penalty clause, default clause, returns to MPPP, total development costs inclusive of infrastructure, etc and the likes. These are the minimum expectations of a CAT administration. Remember the lopsided concessions given to PLUS and Penang bridge operators only came to light after nearly 20 years?
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And then on this RM50 million issue. Early last year, the announcement was MPPP will bear all the RM50 million, expense RM30 million in 2011 and RM20 million in 2012. Then mid last year,the CM said the state will bear this cost. During the launch event last week, the CM then said MPPP will bear RM50 million. A few days later, after questions and pressure from the media, he clarified that MPPP actually will only pay RM11.5 million. So why all this flip flop and trying to wiggle out of the situation? We are just asking for the honest truth owed to the ratepayers of Penang.
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SH Tan, by all means, please ask for as much information that you want. You can even officially write to CM’s office for more information. As for the PC by Tony, you can read it here in Msiakini.
http://www1.malaysiakini.com/news/153805
Tony has compared and contrasted the difference between the 1NIH project and the SPICE project. If this does not convince you about how much effort and strong barganing that the Penang goverment would have done to get the best deal for Penang, nothing else will. Hope this helps to gain more trust and to allow the Penang government team to move forward with your support.
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Habib
I don’t think you are getting the point we are trying to drive at.
Firstly what Tony Pua has got to do with sPICE ? Is he the CM or even a part of Penang state govt ?
The person who should explain this is the Cheap Minister of Penang, LGE. And why is he hiding under the skirt of Tony ??
We had been asking for financial projections / ROI and business plan and not yet another meaningless spin by the so-called DAP’s economic whiz kid who is another example of tin kosong.
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Dear K.
Take a subscription with Malaysiakini and read the news.
It has everything to do with sPICE because a comparison was made between the BN way and the PR way and the clear contrast between the methods adopted by a Cheap Minister in Penang and an Expensive Prime Minister in Putra Jaya.
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You may get more respects if you can protect your master’s … with facts.
Twist here and twist there is a bygone era, used by BN to cheat orang kampung.
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SH Tan/Anil,
Another historical achivement…Penang No 1 in drawing investment in 2010 as reported by MIDA. How was this possible… almost 6x more compared to 2009!
http://www.facebook.com/notes/cm-lim-guan-eng/penang-is-the-no1-state-for-total-capital-investments-in-2010-attracting-rm-1223/185928228097563
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Habib
What this news got to do with sPICE ? Are you the PR Chief for the Cheap Minister ?
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Dear K.
The news may have nothing to do with sPICE.
However, I believe it has everything to do with Kometenmelodie because your namesake simply mentioned about “falling FDIs” in one of the earlier posts dated 18 January 2011 at 11.10pm, now proven to be incorrect.
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wira
So what ? Then Habib should reply to my post in the right thread and not behaving as the chief PR officer for LGE by spamming and posting irrelevant replies.
BTW, why are you replying on behalf of HABIB ? Are you using two usernames or a mindreader ? Certainly both of you share the same M.O.
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If you could rebut Habib when his thread was specifically addressed to SH Tan/Anil, in the same consideration, so could I butt in.
What is sauce for the goose is sauce for the gander.
Correct me then if you think your namesake was still right about “falling FDIs.”
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Wira,
Thanks. If the rebuttal is of factual nature, then I would respond. Those who indulge is name calling of silly nature, best to ignore coz its better not to dignify it with a reply. Thanks again for your support.
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Dear All,
All folks who are concerned about the sPICE project and wish to know more, you can from today (21-1-2011)visit PISA to view the plans for sPICE. It will be on display for 2 weeks and you can ask all the questions that you want to know from MPPP.
http://www.themalaysianinsider.com/malaysia/article/penang-starts-hearing-views-on-rm300m-centre/
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LGE was tried to twist and juggle the number. To claim state government only need to come out RM 11.5 million is a fallacy and misleading statement.
Why?
LGE argued the state government can save RM25 million for initial capital outlay for the repair of swimming pool and aquatics center, etc. is wrong.
Actually SP Setia paid RM 25 million in exchange for 30-year leasehold rights, meaning the state government is losing all opportunity incomes generated from the aquatics center and swimming pool which may be higher or lower than RM25 million.
In other word, LGE is paying SP Setia with future income, therefore he cannot claim RM 25 million is a gain.
Similarly for the land, the state government is losing a piece of land worth RM13.5 in exchange for RM13.5 million cash which is used as initial capital. There is no gain in this case, the net income is zero after losing a piece of land.
In other word, state government is still paying RM13.5 million to SP Setia (or Tetuan Eco Meridean)
In the nutshell, state government still have to fork our RM 50 million from the sale of land and future income cash flow.
Those attending the sPICE’s public meeting, please expose all BS from LGE.
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I doubt the aquatic centre has ever generated a profit.
Moreover, the use of that pool is supposed to be a “public service” to those who cannot afford to swim in private pools.
I remember those substandard pools had been, very often, closed for repairs since the centre was built by the BN government.
Without spending megabucks for a major repair and refurbishment, I doubt they can even reopen for public use.
Go to http://forum.mysplash.net/viewtopic.php?f=10&p=600 to get a feel about the condition of those pools today and the grouses of some users.
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No businessman will pay you for nothing. SP Setia may plan to keep the pool for new hotel.
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It is supposed to remain an aquatic centre after the repairs and refurbishments according to CM’s press release, if I remember correctly.
I don’t think SP Setia would dare covet that but
it will definitely be interesting if they do.
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Anyway, compliment must be given to LGE for having a public consultation with stakeholders.
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Send your feedback to hiyah@mppp.gov.my
Thx
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