Mohammed Badrul Ahsan :
Fresh complexity on payment system in the draft agreement with Malaysian company has once again made the future of Rajuk’s largest apartment project at Uttara uncertain, sources said.
According to the source, Ministry of Law (MoL) vetting has recently found the payment system, as mentioned in its draft agreement, prepared for signing with a Malaysian consortium, inconsistent.
Officials concerned said MoL has already sent back the draft to Rajuk, suggesting necessary amendment to the payback system, through which payment of the foreign builder will be cleared.
They also said development works of the Tk 53-billion project for building 8,400 apartments at Uttara Residential Model Town in the capital might face further deferment following the complexity.
According to the draft of the master agreement, the city development authority will sell out the flats to applicants through advertisement. The consortium will build the flats in two categories – 1,250 sq-ft (square-feet) and 1,050 sq-ft – at a rate of Tk 4,500 per sq-ft. Its payment for constructing the apartments will be cleared from the income through their sale.
It is also mentioned in Schedule-F of the draft that the payback process will start on completion of the project, and will be finished within a year in four phases (25 per cent in each installment).
Seeking anonymity, a senior official of MoL said they found a part in the draft inconsistent with the project profile, which says the flat holder will clear 50 per cent of the total payment in four instalments and the rest in next eight annual instalments.
“Then, how Rajuk, which has no extra fund in hand as was stated, will clear dues of the Malaysian builder in 12 months? That’s why we’ve advised them to amend it,” he added.
When contacted, Project Director Raihanul Ferdous said MoL made some observations, particularly on financial matter, over the draft master agreement with suggestion of amendment. The draft covers all the major aspects of the project deal, including financial matters, mode of payment, timeframe, type of infrastructure and facilities.
“We’ve received the ministry’s observation and will hold meeting with the Rajuk chairman soon over the matter. In that meeting, we’ll discuss every possible thing as far as the payback system is concerned,” he added.
Rajuk sources said the city developing authority is considering the option of taking bank loan to pay construction expenditure of SPV ALM-GEMILANG Consortium Limited.
But bank finance could cause further trouble in the form of ballooning debt burden, if Rajuk fails to sell out the flats. No applicant was found for 800 apartments of the project even after extending timeframe several times for application, they added.
Under the consortium the Malaysian government will build a total of 8,400 apartments in Block-B and Block-C of the project under G2G (government to government) arrangement. Besides, Rajuk will construct 6,636 apartments in Block-A through local construction firms, according to the project profile.
The flats, to be built in the model of Industrialised Building System (IBS), will have many environment-friendly facilities, like – solar system, storm water harvesting and Sewerage Treatment Plant (STP).
The project is supposed to play a significant role in providing modern accommodation facilities to a large number of families, who do not have enough money to own living space. Prices of land and flat are soaring abnormally in the overpopulated megacity.
Fresh complexity on payment system in the draft agreement with Malaysian company has once again made the future of Rajuk’s largest apartment project at Uttara uncertain, sources said.
According to the source, Ministry of Law (MoL) vetting has recently found the payment system, as mentioned in its draft agreement, prepared for signing with a Malaysian consortium, inconsistent.
Officials concerned said MoL has already sent back the draft to Rajuk, suggesting necessary amendment to the payback system, through which payment of the foreign builder will be cleared.
They also said development works of the Tk 53-billion project for building 8,400 apartments at Uttara Residential Model Town in the capital might face further deferment following the complexity.
According to the draft of the master agreement, the city development authority will sell out the flats to applicants through advertisement. The consortium will build the flats in two categories – 1,250 sq-ft (square-feet) and 1,050 sq-ft – at a rate of Tk 4,500 per sq-ft. Its payment for constructing the apartments will be cleared from the income through their sale.
It is also mentioned in Schedule-F of the draft that the payback process will start on completion of the project, and will be finished within a year in four phases (25 per cent in each installment).
Seeking anonymity, a senior official of MoL said they found a part in the draft inconsistent with the project profile, which says the flat holder will clear 50 per cent of the total payment in four instalments and the rest in next eight annual instalments.
“Then, how Rajuk, which has no extra fund in hand as was stated, will clear dues of the Malaysian builder in 12 months? That’s why we’ve advised them to amend it,” he added.
When contacted, Project Director Raihanul Ferdous said MoL made some observations, particularly on financial matter, over the draft master agreement with suggestion of amendment. The draft covers all the major aspects of the project deal, including financial matters, mode of payment, timeframe, type of infrastructure and facilities.
“We’ve received the ministry’s observation and will hold meeting with the Rajuk chairman soon over the matter. In that meeting, we’ll discuss every possible thing as far as the payback system is concerned,” he added.
Rajuk sources said the city developing authority is considering the option of taking bank loan to pay construction expenditure of SPV ALM-GEMILANG Consortium Limited.
But bank finance could cause further trouble in the form of ballooning debt burden, if Rajuk fails to sell out the flats. No applicant was found for 800 apartments of the project even after extending timeframe several times for application, they added.
Under the consortium the Malaysian government will build a total of 8,400 apartments in Block-B and Block-C of the project under G2G (government to government) arrangement. Besides, Rajuk will construct 6,636 apartments in Block-A through local construction firms, according to the project profile.
The flats, to be built in the model of Industrialised Building System (IBS), will have many environment-friendly facilities, like – solar system, storm water harvesting and Sewerage Treatment Plant (STP).
The project is supposed to play a significant role in providing modern accommodation facilities to a large number of families, who do not have enough money to own living space. Prices of land and flat are soaring abnormally in the overpopulated megacity.
