KUALA Lumpur City Hall will not take over the controversial Taman Rimba Kiara (TRK) project as it is too costly, said Federal Territories Minister Khalid Samad.
The financial consequences of cancelling the project are not limited to the RM155 million already spent by the developer, he said, adding that DBKL will also have to pay a lot in compensation.
“Cancelling the project will include interest, other costs and a loss of profit for the developer. A loss in profit for a RM3 billion development project is quite substantial,” Khalid told The Malaysian Insight.
“For example, we sell the land for RM100 million and buy it back for RM150 million, we will be incurring a loss.”
Residents of Taman Tun Dr Ismail in Kuala Lumpur are protesting against the proposed TRK development as they fear the loss of the “last green lung” in the area.
The proposed development – a joint venture between Memang Perkasa and Yayasan Wilayah Persekutuan (YWP) – comprises eight blocks of luxury serviced apartments, between 42 and 54 levels, with 1,800 units.
It also includes a 29-storey block featuring 350 affordable apartments with 200 units reserved for the relocation of longhouse families nearby.
City Hall had in 2016approved the housing development on a 4.86ha land in TRK, which is designated as a public open space under the Kuala Lumpur City Plan 2020.
The TTDI residents’ association took the matter to court but their judicial review application was rejected last week. The court ruled that the development order on the project was legal.
Khalid said scrapping the project will also mean the longhouse residents of Taman Rimba Kiara will not have the homes promised to them since the days of the Barisan National government.
“Let’s say the developer moves out and we pay the compensation, we’re still stuck with the longhouse residents. We will have to build at least 200 houses or apartments for them. And not low-cost housing,” he said.
“This will incur a minimum of RM30-40 million, that’s my personal estimate. This money will have to come from City Hall, too.”
Under the previous administration, the longhouse residents were promised affordable homes at RM300,000 per unit. The residents were told they would get homes at 50% the market rate.
“Each family will have to be compensated RM450,000 if the houses promised to them are not built. I cannot just be giving away City Hall’s money like that,” Khalid said.
If DBKL is to cancel all development projects to which the people objected, it would be paying out billions of ringgit in compensation. And that, Khalid said, will not be fair to the other residents of Kuala Lumpur.
Khalid added that he has his hands full trying to juggle the interest of various parties, mainly the residents of TTDI, developers, longhouse residents and City Hall.
“I also have to consider the interest of the developer who has put in money. They want their profits. I’m trying to negotiate with them so that we don’t get sued.
“I also have to consider the longhouse residents. They need to get their homes after waiting for 36 years. Three generations have been staying there now, in wooden houses, we have to be fair to them.”
Khalid said his priority is to protect City Hall and make sure it does not lose money.
“I don’t think, just for the sake of being popular, I can give everyone what they want. It won’t be very responsible on my part to do that.” – December 7, 2018.
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