KUALA LUMPUR (June 30): The scale of 1Malaysia Development Bhd's (1MDB) Bandar Malaysia mixed development here may require the combined expertise and financial strength of consortiums to ensure its success.

According to CH Williams Talhar & Wong (WTW), which is managing the request for proposal (RFP) for the 198-ha (495 acre) Bandar Malaysia, not many Malaysian companies would be able to undertake the projects on their own.

"Based on the size of Bandar Malaysia, obviously there would be not many Malaysian companies by themselves that would be able to afford this.

"We hope that they form consortiums," WTW deputy managing director Danny S.K. Yeo told reporters at a briefing on Bandar Malaysia earlier today.

Yeo said details on the RFP had been circulated to interested parties.

He said WTW would undertake the selection process and subsequently 1MDB would make the final decision on the consortiums for Bandar Malaysia.

Yeo said construction for Bandar Malaysia was expected to start as early as 2017.

Earlier, 1MDB had said the RFP followed its rationalisation plan, which was presented to the Malaysian Cabinet on May 29 this year.

On that day, the finance ministry said in a statement that the government, which owns 100% of 1MDB, intended to turn Bandar Malaysia and Tun Razak Exchange (TRX) into standalone companies.

The finance ministry said Bandar Malaysia and TRX would have full autonomy and be accountable for their operations and financials.

"Whilst options are being pursued with respect to the monetisation of Edra Energy, the Ministry of Finance will remain a key shareholder in TRX and Bandar Malaysia, which will raise equity via third party investors. Proceeds raised will be used for capital expenditure and to reduce 1MDB’s debt," the finance ministry said.