While it is the intention of 1MDB and the Consortium to transfer the remainder of the relocation construction costs and the Sukuk debt to the New Special Purpose Vehicle 1 (SPV 1) — owned 40 per cent by 1MDB/MoF Inc and 60 per cent by the Consortium — the transfer, said the company, will require: determination and agreement between the parties on the final costs for the relocation and the Sukuk and all relevant consents, including but not limited to, from the Government of Malaysia, the contractor (PPHM) and sukuk investors.

1MDB was commenting on “certain questions, queries and concerns” being raised by various parties on the recently announced sale of 60 per cent equity in the Bandar Malaysia project to a Consortium comprising Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corporation (CREC).

Should 1MDB and the Consortium agree on the costs and manage to procure the consents, then the Consortium will pay its 60 per cent share of the costs and the Purchase Consideration will be adjusted accordingly, i.e. RM12.35 billion Land Value less RM1.9 billion relocation costs less RM1.63 billion Sukuk costs = RM8.8 billion of which 60 per cent Consortium share is RM5.3 billion, said the company in the statement. “However, if the costs cannot be agreed upon or the consents cannot be procured, then the Purchase Consideration of RM7.41 billion will be paid in full to 1MDB, who will still be responsible for the costs.”

In either scenario, said the statement, the Purchase Consideration of RM7.41 billion to 1MDB does not change. “The only difference is whether 1MDB receives the amount in full, then pays for the costs OR whether the Consortium pays for its share of the costs and remits the balance of RM5.3 billion to 1MDB.”