Malaysia

[UPDATED] PSR: 930ha Island A to go private under SRS Consortium

RM3.8 billion needed to reclaim biggest of 3 islands, but funding will not involve Penang govt, says CM

Updated 5 years ago · Published on 25 Mar 2021 5:05PM

[UPDATED] PSR: 930ha Island A to go private under SRS Consortium — Gamuda Engineering Sdn Bhd has been appointed to reclaim Island A under Phase 1 of the Penang South Reclamation project, while other development works will be awarded through open tender. – Penangpropertytalk.com pic, March 25, 2021

by Sofia Nasir

GEORGE TOWN – The 930ha Island A of the Penang South Reclamation (PSR) project will be a privately funded, undertaken by SRS Consortium Sdn Bhd in a joint venture with the state government.

Chief Minister Chow Kon Yeow in a press conference today said SRS Consortium on February 15 proposed that the reclamation of Island A be done through private funding without involving the state government.

Some RM3.8 billion is needed to reclaim the biggest of the three islands.

“On March 24, the state executive council approved the proposed joint venture, and an additional agreement will be signed after this.

“All reclamation work on Island A will be carried out by a joint venture company that will be set up by the state government together with SRS Consortium.”

Chow said two joint venture companies will be set up – a project developer and turnkey contractor – involving Penang Infrastructure Corporation Sdn Bhd and SRS Consortium with a 30:70 stake.

Penang Chief Minister Chow Kon Yeow pointing at a proposed picture of Island A, the biggest of the three islands in the Penang South Reclamation project. – SOFIA NASIR/The Vibes pic, March 25, 2021

“Gamuda Engineering Sdn Bhd will be appointed to reclaim Island A under Phase 1, while other development works will be awarded through open tender.

“I would like to clarify that the reclaimed land and PSR project are still owned by the state government, not privately owned.”

He said preliminary works on Island A will begin on Monday, involving survey work and soil research that will take three months.

After that, he added, Phase 1 reclamation work on Island A will begin, involving an area of 485.6ha.

“Phase 1 is important as it will also be known as the ‘heart of the island’, and will take five years to complete.”

Last July, Gamuda Bhd was appointed by the Penang government as the project delivery partner (PDP) for the Penang Transport Master Plan (PTMP).

The conglomerate in a statement on Bursa Malaysia said its 60% subsidiary, SRS Consortium, has entered into a master agreement with the state government regarding its appointment as the PDP for the infrastructure project.

The PSR includes three artificial islands, with a total area of 1,700ha, in the waters of Permatang Damar Laut, near Bayan Lepas.

It is part of an infrastructure project in the PTMP worth RM46 billion. – The Vibes, March 25, 2021