Cabinet has decided to inject RM2.8 billion for the Tun Razak Exchange project (TRX) because abandoning it will result in having to fork out RM3.51 billion in compensation.
“It will also be an eyesore to have an abandoned mega-project in the heart of Kuala Lumpur,” said Finance Minister Lim Guan Eng in a statement today.
The RM2.8 billion injected was on top of the RM3,688 million transferred by the federal government to project owner TRX City Sdn Bhd (TRXC) since 2012.
In total, the federal government would have to fork out RM6.5 billion.
“Completing TRX will allow the full value of the project of at least RM7.6 billion to be realised. This will help to recoup and repay the TRXC borrowings, including sums misappropriated by 1MDB.
Lim added that of RM3,688 million transferred to TRXC, RM3,067 million had been misappropriated by 1MDB, mainly for 1MDB loan repayments.
“As a result of the misappropriation of funds, TRXC does not have enough money to fulfil its obligations as the master developer for TRX,” he said.
[More to follow] - Mkini
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