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’Â – 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)?
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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. 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… Read more »
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.
No businessman will pay you for nothing. SP Setia may plan to keep the pool for new hotel.
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. 🙂
Anyway, compliment must be given to LGE for having a public consultation with stakeholders.
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/
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… Read more »
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… Read more »
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.
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.
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.
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
Habib
What this news got to do with sPICE ? Are you the PR Chief for the Cheap Minister ?
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.
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.
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.”
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.
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… Read more »
Tony Pua will do a press conference on this project. Hope Anil will attend it to clarify all his concerns.
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… Read more »
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… Read more »
Let come out more silly explanations than admit you mistake.
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.… Read more »
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.
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!
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.
And you speak for the public?
I speak for the public fund.
If you cannot understand what is public and public fund, get lose before you incur more self-humiliation.
Im so ashamed that I even try with the likes of you.
I am not a card carrying member of any political party or NGO, just a registered voter and a Penang resident all my life. This sPICE project will create traffic chaos in the already congested Relau area as well as posing vast unknown financial risks to ratepayers. Remember LGE’s “track record” – the Kings of Tennis fiasco, the proposed Tiger Park, sending an Exco member who cannot speak English properly to represent Penang at a tourism function in Australia, etc, Anil, can you enlighten me whether he has publicly published the declaration of assets of his Exco members which he… Read more »
DAP is not offering good service to rakyat, they are betting on BN is more evil than DAP. This is only card they have.
& the same RM2 Ah Soon Enterprise wants the contract to implement the bestest land Transport system in Penang. An enterprise with no credentials.
For those with limited brain power and memory storage problem,please refresh your memory on Bayan Baru flash flood a constant agony at
http://www.malaysiakini.tv/video/19042/downpour-floods-bayan-baru-again.html
Don’t you people understand how business is normally carried out?
Eco Meridean may be a RM2 company today for the purpose of business name registration.
Soon, it will no longer be.
Please lah ….
Don’t place the business acumen and trust of Liew Kee Sin and his team in the same league as Zahrain and his family. 🙂
Register a sole proprietor company already costs RM30 plus other misc.
Are you ignorance or damn stupid to say register a sdn bhd company only need RM2.
If you cannot differentiate registration fee and paid-up capital, you should shut off your mouth till you learn the business 123 course.
Why people must trust Liew Kee Sin? He is just another UMNO crony with no business acumen unlike Robert Kuok.
One thing I cant understand why Desmond always give in to Umno cronies. Is it a prelude for DAP to join BN? The design of sPICE with the underground facilities at a site that prone to flooding, smell like a camouflage sabotage attempt. How Desmond learn to trust Liew Kee Sin is really puzzling me!
One more please tell us how the flood mitigation in the surrounding areas can guarantee that the underground facilities of sPICE will not be submerged by rain water.
When most convention facilities in the world is losing money and appear to be heading toward a larger loss in the near future,what make LGe think that sPICE will not end up as a white elephant that need the bailout of the state government. LGe should give detail projections on how the much money should go to paying off the debt for construction of the convention center. How much should be spent on sales and marketing to attract events organizers to use the facilities. How much should be paid for operations of the center. LGe should also provide detail information… Read more »
Public tender, no cronies nor rent seekers and a right business sense should suffice for government projects. The state should reveal sufficient details for its citizens on public websites, invite public opinion and discussion, so that tax payers are well informed. If Penang were to lead, political courage and a sense of enterprise is needed. It is unnecessary to refer back to the voters for every major decision. After all, a 5 year mandate had been given to the ruling party in the last state election. Would anyone expect that the appointed MPPP councillors would or should take leadership and… Read more »
Actually, the MPPP is responsible and accountable to the people of Penang Island on how their assessment income and other revenue are spent. So councillors have a crucial role to play in safeguarding MPPP coffers.
Please gentlemen get your fact right! LGe is dealing with Eco Meridean, a Rm 2 company , not SP Setia. If Eco Meridean go broke, LGE can’t claim any damage from SP Setia. LGE should explain how the tender was awarded to Eco Meridea. Remember how LGe laughed at Zahrain for asking him to give greenlight for a RM2 company to operate and manage the Bukit Jambul Golf and Country Club, of which Zahrain is a director. Why now a RM2 company is no longer a problem for building his monument? Why no open tender system for the proposed RM300mil… Read more »
The crux of Anil’s reservations is about the much-vaunted transparency the State Govt advocates. It talks CAT but the project, from inception to award, has been mired in the dark of stealth. It might well be this will be good for Penang, but show us the studies, the rationale. What are the short- and long-term implications to the people? This is public money so a little accountability is required.
This very important point is missed by many.
The whole real estate plus everything on top of it (some RM300 million in today’s ringgit) reverts back to the local authority after this “build and operate” lease expires in 30 years.
Over time, MPPP is the winner, unless cronies of government are able to extend it under dubious means like in the case of PLUS and other concessionaires.
With UMNO, this is sure to happen.
With DAP/Pakatan, there is hope.
Again Anil, We need a PICC, NO 2 ways about it. We need a proper convention Center of some international class. Penang is not looking for the same MICE market as Singapore or BITEC or KL Convention Center. We are trying to develop a regional to national level presence. In the 1970s Malaysian used to go to Singapore for shopping but today the roles are reversed. We cannot depend on our FIZ manufacturing in high volume, high labour intensive industries. What PR Govt is looking at is for the next 20-25 years. It is mypoic to say everything is okay… Read more »
If we cannot depend on our FIZ manufacturing in high volume, high labour intensive industries, why build sPICE which solely depend on the MNCs for survival?
SPICE rooftop park are indeed intriguing. In fact, it sounds good ,feel good, but pretty damn difficult and expensive to maintain. Apparently, LGE didn’t mentioned anything about WATER CATCHMENT abilities. So I assume there is NONE. So one question here : did MPPP ever think of watering expenses and issues? How much weight the “park” structure going to sustain without incur too much cost? What is the park water proofing cost? How much it cost to maintain to not jeopardy the whole building infrastructure? As reminder, Malaysia Parliament half billions maintenance/refurbish flood and leakage problem is some lesson to learn.… Read more »
How about organizing an on-line petition so we can demand LGE and Penang Govt provide clear cut info and answers to all these question we have on this SPICE deal with SP Setia? What I find most disappointing is that this is exactly the sort of haze we usually expect and see when UMNO/BN is involved and for which we have been taking them to task ever since. Now we find (almost) the same modus operandi from a State Govt we fully support and one which we see as a beacon of light for change for the better. It looks… Read more »
To sell or not to sell the land, there’s always politcal concern besides profit, which is common on this country nowadays. May be someone should mention to whom SPS is related to?
If i bought a land, then its mine. Whether i build or not its up to me? No? If it’s designated for commercial, as long as i comply with that and the building by-law, i can build anything that i want! No? If the land is mine, why should i waste my money on some 7 acres of tree on my rooftop? and the need to cater strong foundation for it and maintain it? So i think the issue here is transparency on the project and what is the gains for the all stakeholders and whether its worth the money.… Read more »