THE controversial billion-ringgit Tanjung Aru Eco Development has not been scrapped but presently being reviewed by the state goverment, Sabah Chief Minister Shafie Apdal said. 

He said among the measures considered is to downsize the project, saying that while development is important, it must take account the grouses of Sabahans. 

“This is a very important project for the government. It will go on. I know there are objections from people and environmental groups on the project.

“They have made known their concerns well by letters and also through the media. We must listen to them but at the same time development must go on,” he said in response to the question and answer session at the Sabah State Assembly today.

Shafie was responding to the questions and additional questions posed by Luyang Assemblyman Phoong Jin Zhe, sit-in opposition leader Dr Jeffrey Kitingan and others.

TAED is an ambitious makeover of the popular tourist spot in Kota Kinabalu Sabah unveiled by the previous Barisan Nasional government with the ground-breaking ceremony done by former prime minister Najib Razak on Malaysia Day (September 16) in 2013.

The project is valued at RM7.1 billion, with an additional RM1.83 billion on reclamation of the Tanjung Aru beach shoreline.

Shafie said no investors had incur any losses from the revision of the project, adding however only the state government has invested around RM60 million on TAED to date.

“However, the government already knows that there is already a financier for the project.

“Still we have to be mindful of the investors interest and public, and we must mitigate both.

“Rest assured the first beach will remain belong to the public, but we must also need to generate revenue and this project will help us generate an income from the tourism industry,” he said.

When asked on the RM500 million federal allocation to kick start the project, Shafie said the state government must consider the financial health of the federal government trying to recover the national debt amounting to RM1 trillion and therefore, believe the funds will be affected.

Shafie also confirmed that reclamation of the Tanjung Aru shore line will continue but will not be as initially planned.

He noted the reclamation will cost between RM2 billion to RM3 billion. – July 4, 2018.