PRIVATE companies have been asked to play a bigger role in helping the government to undertake urban renewal projects within Kuala Lumpur.
According to Minister in the Prime Minister's Department Datuk Tengku Adnan Mansor, the government is looking into the possibility of relocating ageing low-cost City Hall flats currently on prime land area in Kuala Lumpur to make way for more urban renewal projects.
Private companies could come in as joint-venture partners to redevelop those areas to unlock their value, he said.
This would also help to relieve the government's financial and administrative burden and reduce the size and presence of the public sector in the economy, he told reporters after witnessing the signing of a RM110mil syndicated bridging loan between Bintai Kinden Corp Bhd and a consortium of financial institutions led by Aseambankers Malaysia Bhd in Kuala Lumpur yesterday.
Mayor Datuk Mohamad Shaid Mohd Taufik also was present.
The loan was for Bintai to construct eight blocks of City Hall low- cost flats known as Sri Rampai in Setapak Jaya to relocate existing tenants of low-cost flats in Jalan Pekeliling.
This is to facilitate a RM2bil urban renewal project to convert Jalan Pekeliling into a modern mixed development area. The urban renewal project has been awarded to a local company, Asie Sdn Bhd.
Adnan said the project would take up about 53 acres including the site of the low-cost flats, the police quarters and the Tuberculosis Hospital.
The government had also received a proposal from a company to undertake similar redevelopment at City Hall's low-cost flats in Jalan Padang Tembok Besar, Kuala Lumpur, he said.
Meanwhile, Asie project director Raja Datuk Seri Dzulkifli Raja Tun Uda said the Jalan Pekeliling project would take about 15 years to complete. It would be a mixed development, comprising residential apartments, commercial offices, shopping malls and a transportation hub.