SEREMBAN: The Negri Sembilan government has decided against securing a bank loan for its RM250mil Bandar Warisan project as it was too risky.
Mentri Besar Datuk Seri Mohamad Hasan said the state government would probably get the loan from another government agency.
I will announce the name of the agency once the matter is finalised, he told reporters here yesterday.
The development of Felda Sendayan will see settlers receiving compensation of up to RM1mil each, including land and a house.
Before this, the state government had approached the Employees Provident Fund to finance the project but the EPF board turned down the request.
On Wednesday, the mentri besar said the state government could not meet the stringent conditions set by the EPF.
One condition was for the government to mortgage its land to EPF as collateral for the loan, with the application to be made by the state government subsidiary, Mentri Besar Incorporated.