First here is the news:
Economics Minister Azmin Ali assurance airport in Kulim “100%” private sector
government does not have funds to develop airport but development is neede.
Who said it was a government project?
Azmin pointed out Penang cannot cope with increasing traffic
expansion for Penang airport is limited
Azmin said Kulim Airport necessary to attract investment in northern state
Azmin said Kulim Airport necessary to attract investment in northern state
Kulim airport one of several high-impact projects in Kedah
My comments :
Remember the 'Flying Car' Minister? He refused to divulge who was the private company behind the 'Flying Car' idea. Until today he has refused to name the company. A mysterious company.
This only raises questions. Is it a GLC, camouflaged as a "private company"? It is still taxpayers' money.
Or maybe a joint venture between a GLC and a private company? Also taxpayers' money involved.
Now yet another "mysterious" private company will fully fund an RM1.6 billion airport in Kulim? Is this really a "private company" or just another GLC camouflaged as a 'private company'?
Are there any government guarantees involved?
If not, then it has to be a private company yang tak tahu kira.
Because firstly NO bank is going to lend money to a private company to build an airport. It is just not financially feasible.
An airport is an infrastructure project. The financial returns are very small.
You just lay millions of tons of concrete and steel to make an airport. The average Return on Investment on an infrastructure project like an airport is say 2% - 4%. That is all.
If you put your money in Fixed Deposits, you can earn a higher Return on Investment, more than 4%.
And ALL infrastructure projects, especially airports, will suffer cost overruns.
On a project this size, a 25% cost over run is nothing.
So RM1.6 billion can become RM2.0 billion in no time.
So why would a 'private company' take all that risk just to generate a return of 2% to 4%? Or is it another 'koporat yang tak tahu kira' ke?
Unless....unless... they are asking for payment in kind - LAND.
In return for building the airport for RM1.6 Billion, they will get say 5,000 acres of land somewhere else in Kedah? Or maybe adjacent to the new airport itself?
Plus of course the land for the airport itself. How many thousand acres is that?
And using the lowest valuation? Like the 1MDB model?
There is a story from Kedah that one billionaire bought a few thousand acres of State land (during the Kleptocracy) for 25 sen a square foot. (Eh . . where is Kulim ah?)
The billionaire then resold the land to the Federal government for RM25 psf.
This is exactly the 1MDB model.
Talk is he made RM6 billion from this sale.
He gave an RM1b 'cut' to the Moron.
Folks, this type of land swap may make this Kulim airport "financially" feasible - for the pirates. Not for you and me. We are the suckers.
And who is going to operate the airport?
Will there be sufficient international flights going into Kulim to sustain a profitable airport?
Or will this become another 'bailout and rescue package' some years down the road? For you and me to pick up the 'hutang negara'?
A proper transportation study may give us a better idea if Kulim can sustain an international airport. A comment elsewhere asked the following pertinent questions:
Indeed where is the Minister of Transport?
I say Anthony Loke? Where are you?
But this is Pakatan Harapan. The Ministers seem to be encroaching into areas outside their Ministries.
On Saturday Mujahid Rawa (Cranium X Files) is organising a Solidarity gathering or something. Shouldnt it be the job of Waythamoorthy in National Unity?
Back to the Kulim Airport, it may not be financially viable for a commercial operator. This should not or could not be a private sector project.
I only see bailouts.
Or a huge land swap deal.
Or both.
Remember the 'Flying Car' Minister? He refused to divulge who was the private company behind the 'Flying Car' idea. Until today he has refused to name the company. A mysterious company.
This only raises questions. Is it a GLC, camouflaged as a "private company"? It is still taxpayers' money.
Or maybe a joint venture between a GLC and a private company? Also taxpayers' money involved.
Now yet another "mysterious" private company will fully fund an RM1.6 billion airport in Kulim? Is this really a "private company" or just another GLC camouflaged as a 'private company'?
Are there any government guarantees involved?
If not, then it has to be a private company yang tak tahu kira.
Because firstly NO bank is going to lend money to a private company to build an airport. It is just not financially feasible.
An airport is an infrastructure project. The financial returns are very small.
You just lay millions of tons of concrete and steel to make an airport. The average Return on Investment on an infrastructure project like an airport is say 2% - 4%. That is all.
If you put your money in Fixed Deposits, you can earn a higher Return on Investment, more than 4%.
And ALL infrastructure projects, especially airports, will suffer cost overruns.
On a project this size, a 25% cost over run is nothing.
So RM1.6 billion can become RM2.0 billion in no time.
So why would a 'private company' take all that risk just to generate a return of 2% to 4%? Or is it another 'koporat yang tak tahu kira' ke?
Unless....unless... they are asking for payment in kind - LAND.
In return for building the airport for RM1.6 Billion, they will get say 5,000 acres of land somewhere else in Kedah? Or maybe adjacent to the new airport itself?
Plus of course the land for the airport itself. How many thousand acres is that?
And using the lowest valuation? Like the 1MDB model?
There is a story from Kedah that one billionaire bought a few thousand acres of State land (during the Kleptocracy) for 25 sen a square foot. (Eh . . where is Kulim ah?)
The billionaire then resold the land to the Federal government for RM25 psf.
This is exactly the 1MDB model.
Talk is he made RM6 billion from this sale.
He gave an RM1b 'cut' to the Moron.
Folks, this type of land swap may make this Kulim airport "financially" feasible - for the pirates. Not for you and me. We are the suckers.
And who is going to operate the airport?
Will there be sufficient international flights going into Kulim to sustain a profitable airport?
Or will this become another 'bailout and rescue package' some years down the road? For you and me to pick up the 'hutang negara'?
A proper transportation study may give us a better idea if Kulim can sustain an international airport. A comment elsewhere asked the following pertinent questions:
- Why isn’t there a full-scale feasibility study covering the financial, economic and environmental aspects of the project, with due consideration to the economic impact on a well-established major international airport nearby besides the question of redundancy?
- What is the difference between this Harapan government and the previous kleptocratic BN, when it also rushes into major infrastructure project without proper feasibility study or any form of public accountability and consultation?
- Who made the decision to implement this project forthwith any way – transport minister? Finance minister? Economic minister? Prime minister?
- Was the cabinet ever consulted?
Indeed where is the Minister of Transport?
I say Anthony Loke? Where are you?
But this is Pakatan Harapan. The Ministers seem to be encroaching into areas outside their Ministries.
On Saturday Mujahid Rawa (Cranium X Files) is organising a Solidarity gathering or something. Shouldnt it be the job of Waythamoorthy in National Unity?
Back to the Kulim Airport, it may not be financially viable for a commercial operator. This should not or could not be a private sector project.
I only see bailouts.
Or a huge land swap deal.
Or both.
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