Malaysia, Johor: Special housing ownership scheme for residents affected by Pengerang petrochemical projects

Ahmad Fairuz Othman New Straits Times 5 Sep 12

ADDITION TO COMPENSATION: Offer from state government goes to more than 3,000 residents affected by oil and gas projects in Pengerang

THE state government is offering a special housing ownership scheme for more than 3,000 residents who are affected by the oil and gas (O&G) projects in Pengerang.

Menteri Besar Datuk Abdul Ghani Othman said the categories of houses offered are based on the valuation of the owners' existing houses.

All the new houses come with about 557 sq metres of land each.

The valuation and offer of new homes, which were stated in a press release recently, are based on the criteria below:

a) For existing houses valued between RM10,000 to RM40,000, villagers will be able to own new houses (70 sq metres built-up area) with 557 sq metres of land at an estimated market value of RM120,000 by paying only RM35,000 -- a fraction of the market price. The state government will subsidise a minimum of RM85,000.

b) For existing houses valued between RM40,001 and RM75,000, villagers will be able to own new houses (93 sq metres built-up area) with about 557 sq metres of land at an estimated market value of RM180,000 by paying a mere RM65,000. The subsidy by the state government is RM115,000.

c) For existing houses valued at RM75,001 to RM95,000, the state will subsidise RM130,000 for the villagers to own new houses with 121 sq metres built-up area and about 557 sq metres of land at an estimated market value of RM215,000 by paying only RM85,000.

d) For existing houses valued above RM95,000, villagers will be able to own new houses (about 149 sq metres) with about 557 sq metres of land at an estimated market value of RM245,000 by paying only RM105,000. The state will subsidise RM140,000 under this category.

This special housing ownership scheme is an addition to compensation that will be paid out to affected residents, whose land or properties are acquired for the development of the O&G projects.

Ghani said the cash compensation will be offered based on a valuation process on the affected properties and land, conducted by the Valuation and Property Services Department.

An ongoing public hearing is being held until Sept 14 in Pengerang to allow residents to state their cases on matters of government compensation.

The state government will acquire some 8,094ha of land in Pengerang for the development of the Pengerang Integrated Petroleum Complex (PIPC).

This complex will use up about 2,550ha for the Petronas Refinery and Petrochemical Integrated Development (Rapid), while 544ha will be for the Pengerang Independent Deepwater Petroleum Terminal, which is a joint venture between Dialog Group, Royal Vopak and Johor's State Secretary Incorporated.

These are the first two projects to be developed in PIPC.

Future potential investors and supporting industries will take up the remaining land in PIPC.

This massive development is the state government's initiative to transform Pengerang into a regional downstream oil & gas hub.

It will involve the relocation of 3,122 people from 927 families currently residing at the affected areas.

Phase One of the relocation exercise will begin in March 2013 involving three villages, namely Kampung Sg Kapal, Kampung Teluk Empang and Kampung Langkah Baik.

By October 2013, another four villages will follow suit. These are Kampung Sebong, Kampung Batu Mas, Kampung Jawa and Kampung Sungai Buntu.

The affected families in these villages will be moved to a new resettlement area, Taman Bayu Permai in Kampung Dato Abdul Ghani Othman covering 157 hectares.

The new resettlement area is within a 15km radius of their existing villages.