1MDB awards RM2.1bil contract to Armed Forces Fund Board unit

PETALING JAYA: 1Malaysia Development Bhd (1MDB) has awarded an RM2.1bil contract to a unit of the Malaysian Armed Forces Fund Board (Lembaga Tabung Angkatan Tentera or LTAT) to develop eight sites for the relocation of the former Royal Malaysian Air Force (RMAF) base in Sungai Besi.

The relocation was to facilitate the construction of the 200.32ha mixed-use Bandar Malaysia, for which 1MDB is the master developer, the state-owned strategic investment firm said in a statement.

Construction work on Bandar Malaysia can only commence after the new facilities are developed and relocation completed.

However, several preliminary works had started while the Bandar Malaysia International Master Plan Design Competition was almost concluded, 1MDB added.

The relocation involves various units of the RMAF, Royal Artillery Regiment (31 RAD) and the air wing of the Royal Malaysian Police (RMP) from the old Sungai Besi airport, the birthplace of the RMAF.

As the turnkey contractor, LTAT's wholly owned unit Perbadanan Perwira Harta Malaysia (PPHM) would design and build installations at the eight locations, including three new sites: the RMAF base in Sendayan, Negri Sembilan; the 31 RAD base in Kajang, Selangor, and the RMP air wing base in Subang, Selangor.

The rest are in Subang; Kuantan, Pahang; Butterworth, Penang; Gong Kedak, Terengganu; and Ipoh, Perak.

The land in Sendayan for the RMAF base and in Subang for the RMP air wing base was recently purchased by 1MDB. The company would also contribute funds towards the improvement and upgrading of specialised equipment as part of the relocation exercise.

PPHM was expected to provide opportunities for local contractors to participate in the development of the new sites, which were scheduled for completion by 2016, 1MDB said.

1MDB Real Estate Sdn Bhd chief executive officer Datuk Azmar Talib said LTAT, an agency under the Defence Ministry, was in a strong position to ensure that the relocation process would not jeopardise national security.

“They also best understand the needs of the Force's personnel and therefore, would be able to ensure that the welfare of the staff and their families are taken care of,” he added.