Malaysia Reaches Deal to Restart $34 Billion Ex-1MDB Project
- Developers to pay 50% of land sales dividend to government
- Government revived project in April to bolster economic growth
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Malaysia signed a deal with developers to restart the $34 billion Bandar Malaysia project which languished for years after being conceived under the oversight of troubled state fund 1MDB.
A consortium comprising Iskandar Waterfront Holdings Sdn. and China Railway Engineering Corp. will acquire 60% stake in the venture for 6.45 billion ringgit ($1.6 billion). That’s based on Bandar Malaysia’s 12.35 billion ringgit land value and accounts for its 1.6 billion ringgit outstanding debt. The joint venture known as IWH-CREC Sdn. will make payments over three years instead of the earlier agreed seven.