From Malaysia Today:
The controversial Taman Manggis land fronts the Jalan Burma main road, diagonally opposite the New World Centre and Tune Hotel – certainly strategically located.
Jalan Burma is one of Georgetown’s main streets and leads from the popular tourist area of Penang Road, parallel with Gurney Drive for a while, before ending from the roundabout at the end of Gurney Drive.
When the DAP Penang government sold the 47,916 square feet. land previously allocated for public housing to KLIDC for RM232 p.s.f., many had said that this price was severely underpriced, with Penang Barisan Nasional saying it is worth at least double of that.
The Penang government however had defended the sale price saying it is slightly above the official JPPH valuation and done via “open tender”.
There are two things wrong with this excuse:
1) JPPH’s valuations are normally below market value and take into consideration the land use restrictions then (which the Penang government has not dared to release).
2) It was NOT an open tenderIt was a RFP restricted to those with experience in managing a specialist medical centre and able to get license for a medical centre.
This condition was CLEARLY stated in the RFP.In fact, the RFP was titled “Cadangan pembinaan dan pengurusan pusat perubatan pakar” – which, of course, severely restricts the potential bidders for the land, as not many people will be qualified.
If it was an open tender to just sell land for any purpose, the bid prices will certainly be much higher as more people will bid.
An RFP is an invitation to enter into negotiations.
When the successful party is chosen, they have been granted the opportunity to negotiate with the owner/developer for the work, but they have not yet been awarded the contract.
In contrast, a call for tenders (or open tender) is a more formal, detailed process that gives the bidders the assurance that if they put forward the best bid, judged according to the criteria set out in the tender, they must, in accordance with the law, be awarded the job.
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