ID :
285251
Tue, 05/14/2013 - 05:34
Auther :

MMC To Seek Compensation For Jazan Economic City Development Termination

KUALA LUMPUR, May 14 (Bernama) -- MMC Corp Bhd is seeking US$53.6 million (RM160 million) alongside additional value compensation from the Saudi government for the termination of the Jazan Economic City development right. MMC Corp group managing director Hasni Harun said the termination was due to the inability of the company and its partner, the Saudi Arabia-based Binladin Group, to fund the massive project. It is estimated to cost US$30.1 billion (RM89.86 billion) and was to also feature a power plant and a deepwater port. "We have done a lot of work there, adding value to the land, and want to claim fair compensation for the termination. We are going to reclaim our investment outlay of RM160 million, plus value added to the land by us. "We are now working with the Malaysian ambassador to Saudi Arabia and are in active discussion with the government there to ensure we are compensated," he told reporters after the company's annual general meeting here Monday. Last month, the Saudi Arabian government terminated the MMC Corp-Binladin joint venture's right to develop the Jazan Economic City. It appointed Saudi's Aramco to take over the development to expedite the project, which was initially planned to attract heavy industries, a massive food production cluster, as well as an independent oil refinery. -- BERNAMA

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