The project to deepen and widen Sungai Klang under the Selangor Maritime Gate (SMG) initiative, which began in November last year, has not involved any injection of funds from the state government.
Landasan Lumayan Sdn Bhd managing director Syaiful Azmen Nordin said the project, worth RM700 million, is instead financed via premium liability for the land which will be developed, estimated to be RM117 million.
“It also involves RM54 million in debt obligations, with the remainder through financing exploration by the Menteri Besar Selangor (Incorporated) or MBI,” he said in a statement today.
The engagement session with several bodies including the Selangor Irrigation and Drainage Department (JPS), the Selangor Water Management Board (Luas), and consultants have determined the RM700 million estimate for the 56-kilometre project in Sungai Klang will take place over a five-year period.
Efforts to deepen and widen the river, as a result of the major floods that affected Selangor at the end of 2021, will focus on critical areas, ranging from Kampung Bukit Lanchong to Taman Sri Muda, with the river’s estuary estimated to cost RM249 million.
Syaiful Azmen added that participation from the Menteri Besar and the state executive councillor for infrastructure in the company Landasan Lumayan Berjaya Sdn Bhd (LLB) is aimed at ensuring this state government project is carried out properly.
“The position of Dato’ Seri Amirudin Shari and YB Izham Hashim is to represent the interests of the state government, so this project can be implemented in a transparent, orderly manner which meets its goals,” he said.
Wholly owned by MBI, LLSB was appointed by the state government in 2018 to realise SMG, a conservation and development project along Sungai Klang.
LLSB is collaborating with Berjaya Hartanah Berhad to establish a special purpose company for LLB after obtaining approval, including from the Selangor Economic Action Council (MTES) and the Selangor State Executive Council.
This came about after it was determined no other company met the criteria, due to the land and infrastructure conditions, which are expected to be costly in terms of restoration. Prior to that, 98 companies had sent in their proposals via the Request for Proposal (RFP) in 2019.
“Following this, LLSB received a proposal from Berjaya Land Berhad to establish a strategic partnership to holistically develop Sungai Klang, which looks at both real estate development as well as cleaning and conservation efforts,” Syaiful Azmen said.
