This is a figure estimated by PwCAS which could arise in the scenario PKA’s cashflow projection shows a cumulative cash deficit between 2012 and 2041 thereby necessitating an extension of te MOF’s soft loan to 2051.
This scenario assumes that PKA and PKFZ does not do anything further to restructure the debts nor is there a faster take-up rate of PKFZ through improved marketing campaigns and improvement to external economic conditions.
This figure has also been misused by certain quarters as the total cost to the Government. It is not.
The cost to the Government is simply the difference between the prevailing market rates for comparable investments (size, risk profile, and time horizon) and the soft loan interest of 4%. Even then, that cost should be discounted by the socio-development benefits of increased employment and new industries made possible by a transshipment hub anchored in a free trade zone. Examples of new industries that can be illustrated at PKFZ currently include specialized oil and gas deep-sea drilling equipment, power boat manufacturing, and ultra-high precision metal fabrication.
