ALOR STAR: May 1, 2008 By SIRA HABIBU
The Kedah Government is opting for open tenders for logging concessions as negotiated tenders had caused the state to lose an annual revenue amounting to more than RM50mil.
Mentri Besar Azizan Abdul Razak said the state could earn RM10,000 per acre (RM25,000 per hectare) but only got between RM500 and RM1,000 per acre (RM1,250 to RM2,500 per hectare) through negotiated tenders.
“How can the rate be so much lower for negotiated tenders? The loggers can sell one log for RM3,000 but the state is given a mere RM500 per acre.
“Don’t tell me we only have one tree per acre?” he asked.
Azizan said Kedah should earn RM60mil from the 2,400 ha of area allotted for logging annually if it got RM25,000 per hectare.
“That is why the state executive council has decided to implement an open tender system for logging concessions from next year.
“This way, we can help boost the state’s coffers,” he added.
It was reported Thursday that Kedah had closed its doors on negotiated tenders for logging concessions and was opting for open tenders instead.
He said the open tender system could not be implemented this year because the quota was almost taken up within the first two months of the year.
On the reduction of quit rent by between 25% and 75%, Azizan said the state was willing to offer the lower rates because it was looking for other sources of revenue.
“Why burden the public when we can earn greater revenue through logging concessions,” he added.
He had announced on Wednesday that the reduction in quit rent would cost the state RM15mil in lost annual revenue.
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