How much was the land acquisition deposit ECK Group could not pay?

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ECK Group Failed to Pay Land Acquisition Deposit for KXP Project

The ECK Group of Companies (ECK) is no longer participating in the joint venture for the Kulim International Airport (KXP) project. This termination occurred in May of this year due to ECK's non-compliance with the joint venture agreement, specifically their inability to provide the required land acquisition deposit. The state government is now seeking new partners for the development.
Termination of Joint Venture Agreement

The joint venture between the Kedah state government and ECK for the KXP project was officially terminated in May. This decision was a direct consequence of ECK's failure to meet the stipulated conditions within the joint venture agreement. The acquisition of land is fundamental to the airport's development, and ECK's inability to secure this aspect led to the dissolution of the partnership.
Land Acquisition Deposit Amount

ECK failed to pay a land acquisition deposit that was stipulated to be 125 per cent of the estimated land acquisition cost. The estimated cost for acquiring the necessary land for the KXP project was RM2.1 billion. This substantial financial commitment was a key condition that ECK could not fulfil, leading to the termination of their involvement.
State Government Seeking New Partners

Following the termination of the agreement with ECK, the Kedah state government is actively seeking new companies to undertake the KXP development. Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor indicated that eight companies have already expressed interest in partnering with the state for this project. KXP AirportCity Holdings Sdn Bhd, a subsidiary of the Kedah State Development Corporation (PKNK), will be responsible for assessing these potential partners.
Due Diligence for New Appointment

The process of selecting a new company to develop the KXP project will involve a thorough due diligence assessment. PKNK will evaluate potential partners to ensure they possess the necessary financial strength and capability to manage such a significant investment. The Kedah Aerotropolis and Airport City project, which includes the KXP development, requires substantial commitment, and the state government aims to appoint the most convincing company through a rigorous selection process.

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How much was the land acquisition deposit ECK Group could not pay?

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