KUALA LUMPUR, June 24 — UDA Holdings Bhd expects the Bukit Bintang City Centre (BBCC) project, with a gross development value of up to RM10 billion, to have 50 per cent participation by Bumiputera contractors.
Chairman Datuk Johari Abdul Ghani said the Bumiputera contractors’ participation in the project was in line with the Economic Transformation Programme agenda, which seeks to have more Bumiputeras involved in mega projects.
“However, we will ensure that only qualified Bumiputeras are involved in the project and it is not handed over to a third party,” he told a media briefing today.
The project cost for the redevelopment of the Pudu jail site is estimated at around RM5 billion.
He said UDA had also set up a consortium with another two partners, namely Eco World Development Group, which holds 40 per cent equity, and the Employees Provident Fund (EPF) with a 20 per cent stake.
Johari also said UDA had evaluated proposals from three companies and identified the potential developer based on financial performance and experience in mega projects.
“The EPF is involved in the Battersea Power Station Development Project in London, and the same goes with Eco World, which has also participated in a consortium project before.
“We cannot afford to fail in this project, and that is also the reason why we took a number of years to conduct a study before starting the project,” he explained.
On rumours of direct negotiation with Eco World, he said local companies had submitted proposals for the project, however, Eco World was selected based on the specific requirements and its ability in handling huge projects.
The five million sq ft development will comprise retail malls, entertainment hub, strata offices, super skyscraper signature tower and serviced apartments.
Asked on the impact on UDA’s business, Johari said the rental income would be one of the major contributors to the group’s earnings.
“The income from BBCC will be channelled to build affordable houses in Kampung Baru,” he said.
The project’s timeline is expected to be about five to seven years, and upon completion, the recurring income from space rental is projected to be about RM160 million annually. — Bernama