Kota MADANI Project To Begin In 3Q, Costing RM4 Bln

Barnama

24-06-2025

REGION - CENTRAL > NEWS
PUTRAJAYA, June 24 (Bernama) -- The phased development of Kota MADANI in Precinct 19, Putrajaya — a government quarters project — is set to begin in the third quarter (3Q) of this year, with an estimated total cost of RM4 billion.
Putrajaya Corporation (PPj) president, Datuk Fadlun Mak Ujud, said the project is a federal government initiative following an in-depth study which identified an urgent need for affordable housing, particularly for civil servants.
"The government has agreed for the development to proceed under a Private Finance Initiative (PFI), and Putrajaya Holdings Sdn Bhd (PjH), a subsidiary of Petronas, has been appointed to implement the project. The development cost approved by the government is around RM4 billion," he told reporters during a Kota MADANI briefing attended by Minister in the Prime Minister's Department (Federal Territories), Datuk Seri Dr Zaliha Mustafa, here today.
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Fadlun said all development costs will be detailed in a definitive agreement and thoroughly scrutinised by the Public Private Partnership Unit (UKAS), including through value engineering processes to ensure cost efficiency and effectiveness of public investment.
"This project is based on the build, lease, maintain and transfer (BLMT) concept, meaning the government does not directly bear the maintenance costs of the quarters but pays through a long-term lease as set by the government. Therefore, the financial burden is significantly lower compared to current models.
"This is the approach being introduced for the development of quarters, and the repayment period will also be determined by UKAS. The government is carefully reviewing all implementation costs of this project," he said.
Fadlun added that the first phase of the development, beginning this September, will comprise 3,000 residential units under phases 1A and 1B, along with a vertical school expected to be completed by 2027 — allowing educational facilities to operate concurrently with the completion of housing.
He said an open tender process will soon be carried out by PjH, stressing that the government will not be directly involved in contractor selection but will closely monitor overall costs and the approved budget ceiling.
Occupying 41.28 hectares, Kota MADANI will feature 10,000 high-density vertical residential units for more than 30,000 residents.