PETALING JAYA: The RM43 billion Melaka Gateway project will proceed, the state government said today, two weeks after the contract with the main developer was terminated.
Utusan Malaysia reported that Chief Minister Sulaiman Md Ali announced at a state tourism event that the state government did not want the project to be abandoned.
The Melaka Gateway project entails the reclamation of three islands and the building of a deep sea port and a cruise terminal.
“The development will continue, but we have some technical issues that we need to fix,” he said. Sulaiman said the project falls under the state’s new economic corridor called the Melaka Waterfront Economic Zone.
Sulaiman told reporters that the state government would not issue any further statements regarding the termination of the reclamation contract with KAJ Development Sdn Bhd.
He said issues surrounding the contract should be referred to the lawyers.
The state government said on Nov 16 that KAJ Development’s contract was terminated after it failed to complete the work by the given date.
The company’s chief executive, Michelle Ong, said there were “no reasons given” for the termination notice.
She said RM700 million had already been spent on the project so far, with 40% of the project work carried out, including soil investigations.
The company is the master developer and holds the concession to reclaim and develop three islands spanning 246ha, which would include a deep sea port and Asia’s largest cruise terminal.
In 2018, the company’s port and cruise terminal projects were cancelled by the federal government, but the decision was reversed in November last year after an appeal by the company. The cruise terminal was supposed to be completed by September this year.