Universiti Teknologi Mara (UiTM) has defended its move to build new campuses through concession companies, arguing that the method gives good value for money amongst other benefits.

 

“The private finance initiative (PFI) is a procurement method that is quick, in addition to having good value for money because it has a stringent valuation process through value management labs and project risk management with the companies that execute the project,” UiTM said in a statement yesterday.

 

The statement came in a wake of several press conferences in Parliament by Pandan MP Rafizi Ramli who claimed that crony companies have been awarded contracts to build and manage six campuses for the university.

He claimed that as a result, he said the government will be paying a bloated RM8.6 billion instead of the original cost of only RM1.8 billion.

 

No bailing out claim

UiTM maintained that the PFI arrangement allowed for the projects to be executed immediately using private funds as soon as the government gives the go-ahead for the projects.

 

The concession companies will only be paid after the project is fully completed and handed over to the government, and no payment will be made if there is any delay in completion. There will be no deadline extensions either, it added.

 

“The issue of bailing out the projects does not arise since the risks of the construction is the responsibility of the concessionaire, whereby the project will be handed over to the government when it is complete,” it said.

 

“The concessionaires for the UiTM projects will be allowed to refinance them and profits from the execution of this will be shared evenly with the government,” the university added.

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