KUALA LUMPUR – There has been a lot of buzz over the future plans for Shah Alam Stadium following Selangor Menteri Besar Datuk Seri Amirudin Shari’s announcement last week that the stadium will be enjoying a new lease of life.
Last Friday, state investment arm Menteri Besar Incorporated (MBI) handed over a non-binding letter of intent (LoI) to construction and engineering firm Malaysian Resources Corporation Bhd (MRCB) for the purpose of conducting and delivering a detailed study on how to salvage the 28-year-old stadium – or if it is worth saving at all in its current condition.
Naturally, the pertinent question on everyone’s lips is the cost that will be involved.
Amirudin told the media that the cost of repairing and renovating the current outdoor stadium, which is home to Selangor FC, as well as the indoor Malawati Stadium next door, is in the range of RM787 million.
However, this has been taken to mean that it will cost taxpayers RM787 million to upgrade Shah Alam Stadium.
“This is not the case,” said a highly placed source familiar with the matter.
“The scope of any proposed redevelopment or refurbishment design and budgetary value has yet to be set by MBI and will only be determined after a detailed engagement process,” he said.
He explained that this process will take six months and is subject to details, which would have to be reviewed and approved by a review committee set up by the Selangor government.
For now, MRCB only receives the LoI as no contract has been awarded. They will have to propose on whether Shah Alam Stadium should be refurbished or redeveloped.
“The RM787 million is not the value of the contract,” he explained.
More details will be shared by MBI in September once MRCB submits a detailed proposal, which is expected to include several options for redevelopment, refurbishment, as well as a completely new facility.
“These proposals and options are put together based on detailed discussions with all relevant stakeholders, including sports associations and fans; residents’ associations and government agencies,” said the source.
Perennial problem of maintenance
The source said that as far as the state is concerned, the proposal must be one that is feasible and low-maintenance; and takes into consideration the current economic situation.
“Maintenance is always an issue with our facilities. Look at the current pitch which is waterlogged and does not receive enough sun,” he said.
On Monday, the menteri besar clarified through a tweet that the RM787 million price tag is not for the redevelopment of the premises but to repair the Shah Alam and Malawati stadiums.
He said that the expensive repair works include lifting the stadium platform by 1.5m to avoid flooding – such as those that happened in 2006, 2015, and 2021 – and replacing the entire wiring system and the damaged roof panels of the current stadium.
Amirudin reiterated that the redevelopment will not involve state funds, but that MRCB will receive land banks equivalent to the value of the stadium development.
“However, any agreement to participate in this project will be dependent on a win-win formula where both parties are satisfied that the value to be released from any land swap commensurates with the work that is to be undertaken, and that adequate returns can be made to shareholders and stakeholders,” the source said.
“MRCB’s main shareholder is the Employees Provident Fund (EPF), so obviously, EPF must also weigh in on what is beneficial to its 14 million contributors,” the source opined.
At the LoI handing-over ceremony, Amirudin revealed that MRCB was among 15 companies that were considered for the job.
The menteri besar had said the company was chosen due to its strong financials and track record.
We do not want to give the job to someone who is going to put the stadium up as collateral just to secure loans for his other projects,” Amirudin had said.
The source added that MRCB’s front-runner status is precisely due to the reasons conveyed by Amirudin, as well as the company’s strong track record in building complex structures like stadiums.
MRCB not new to the game
MRCB is not a newcomer when it comes to stadium redevelopment, as it had gained experience from the Kuala Lumpur Sports City project, which was completed on a tight deadline.
MRCB had 18 months to complete the refurbishment of five sports venues – of what used to be Bukit Jalil Sports Complex – in time for the 2017 Southeast Asian (SEA) Games hosted by Malaysia.
Most sports stadium experts estimated it would take 36 months to finish KL Sports City, but MRCB did it in half the time,” the source said.
MRCB’s “stadium in the park” concept won over 10 awards both locally and internationally. The awards were presented by, among others, sports journalists, spectators, and the construction industry.
Among them were the Best Stadium at the World Stadium Congress Awards 2018 (Netherlands), the Outdoor Lighting Award 2018 (Bangkok); and the International Architecture Award 2018 (United States).
“The project was fully compliant with and achieved all certifications from the relevant international sports federations prior to the start for the 2017 SEA Games and the handover of the venue.
“The redevelopment of these stadiums included injecting sustainability elements to allow the facility owners to generate additional income to help them fund the long-term maintenance for these venues e.g., the building of corporate boxes, designated areas for food trucks, world class sound and lights systems to create multi-use venues that can host large non-sporting events,” said the source.
The project subsequently went through a rigorous costing and due diligence process by the Public Works Department as well as the National Audit Department.
The project was also given the thumbs up by the Public Accounts Committee (PAC), which reviewed the cost; the process of the contract award; safety features; management of defects and the usage of assets.
Then PAC chairman Datuk Seri Ronald Kiandee was quoted by Bernama on March 14, 2019, as saying that the implementation of the project was of high quality because it had successfully gained recognition at the international level.
However, the scourge of non-maintenance has also hit the RM1.1 billion KL Sports City – five years after the SEA Games.
With peeling tracks and badminton courts, and a waterlogged pitch at the national stadium, the complex is going to cost taxpayers more in repairs.
It needs to be noted here that the track, courts, and pitch were not within MRCB’s job scope.
Perhaps it would be more practical for the Shah Alam project that MRCB be awarded and made responsible for all aspects of the stadium for better coordination and accountability.
That is, unless MRCB decides that the Shah Alam Stadium’s job is more trouble than it is worth! – The Vibes, July 22, 2022
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