MMC to seek compensation from Saudi govt for Jazan project termination

MMC to seek compensation from Saudi govt for Jazan project termination
Business & Markets 2013
Written by Bernama
Monday, 13 May 2013 19:32


A + / A - / Reset


KUALA LUMPUR, May 13 (Bernama) -- MMC Corp Bhd is seeking 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 Datuk 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 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 today.
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