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Gamuda leads pack for multi-billion ringgit Penang transport job

GAMUDA Bhd is the favourite to land the job as the Project Development Partner (PDP) to oversee the implementation of key components of an integrated transportation plan on Penang island

The others in the running for the PDP job that is estimated at more than RM5.5bil for the initial phase are IJM Corp Bhd, MMC Corp Bhd, the Scomi Group and WCT Holdings Bhd.

The state that is expected to issue a request for proposal (RFP) exercise next month have made it clear that only companies with a minimum RM3bil annual turnover and a track record of 15 years can participate.

Two key components of the RFP would be to build a 17.5 kilometre light rail transit (LRT) project that connects the Komtar building to the airport and a link cutting across the island from Bayan Lepas to Tanjong Bungah.

The Bayan Lepas-Tanjong Bungah cuts across a mountainous terrain and would require tunnels.

“The LRT project alone is estimated at RM4.5bil,” said a source.

In return for implementing the entire transportation system, which is expected to cost RM27bil and to be done over many years, the PDP would be awarded with the rights to reclaim a sizeable amount of land in the state.

Sources familiar with the proposed plan said Gamuda met with the state government officials about two months ago to present its proposal.

“The proposal to construct a LRT line would need the license from the Federal Government which would be the responsibility of the PDP. For instance, if Gamuda wins the mandate, it would also be responsible for securing the licence,” the source said.

The Scomi Group is the dark horse for the project because it already has a mandate from the Federal Government to carry out a train project on the island.

“The mandate was given in 2008 but could not be implemented after the state government fell into the hands of the opposition,” said an industry official.

In exchange for carrying out the project, the state is giving the PDP the rights to reclaim large tracts of land and the option is in two areas on the island.

The first option is an area in the southern part of the island involving reclamation of some 2,000 acres of which about 30% or some 600 acres will be carved out for the state for the future expansion of the Penang International Airport and to enlarge the Free Industrial Zone (FIZ).

The other option is for the PDP to reclaim the seagrass land located in between the Penang Bridge and the river mouth of Sungai Pinang, which is popularly known as the Middle Bank seagrass.

The state has already indicated that it would start work on an integrated transportation master plan last month.

In relation to this, on June 13, Penang Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow had said in a press conference the Penang government would call for a RFP in August for companies to bid to be the Project Delivery Partner (PDP) in the state’s Penang Transport Master Plan strategy.

According to Chow, the appointed PDP must be a reliable partner to the state to guarantee the projects’ delivery.

“They will have to oversee all the projects with costs estimated at RM27bil. The costs cover highway infrastructure (RM16bil) and public transport (RM9bil). The institutional costs amount to RM905mil,” Chow had said during the press conference held in June.

Chow had said that any interested company or consortium comprising local or international companies could take part in the RFP and the submission period was open for three months. Chow said the appointed PDP had to ensure that the projects complied with government policies and procedures, and obtain all relevant approvals including securing of funds.

He said the PDP would not be working on the projects but only acting as a consultant to the state.

“However, the PDP will be involved in the calling for tender process of the transport master plan projects and will have to step in should the contractors fail to deliver, either to replace the contractors or to do it themselves under their own cost,” Chow had said.

The concept is almost similar to Chief Minister Lim Guan Eng’s plan to build a tunnel between Penang island and Butterworth together with a traffic dispersal system near the Gurney Drive and Tanjong Bungah area.

The project was awarded to Consortium Zenith BUCG Sdn Bhd, a joint venture between a Malaysian company and a China company. The entire project is expected to cost RM6.3bil and is to be paid by the company having some 110 acres of land in the reclaimed area of Tanjong Tokong.

Source: StarProperty.my

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  1. Bond
    July 5th, 2014 at 23:57 | #1

    Bayan Lepas is the next satellite town with all these projecrs and improvements on traffics.

  2. chingching
    July 6th, 2014 at 00:19 | #2

    Bond, you don’t know what you’re talking about. I think it’s better for you to just keep quiet. The PG gov has already a blue print for the whole dev in the next 30 years. But only selected few people have seen it. In fact, Bayan Lepas will lose out to some of the key areas, comparatively speaking.

  3. Chocolate
    July 6th, 2014 at 00:46 | #3

    chingching :
    Bond, you don’t know what you’re talking about. I think it’s better for you to just keep quiet. The PG gov has already a blue print for the whole dev in the next 30 years. But only selected few people have seen it. In fact, Bayan Lepas will lose out to some of the key areas, comparatively speaking.

    Since u know something and sound like u seen the plan, can share arr? Otherwise just shut up your mouth as well.

  4. Happy
    July 6th, 2014 at 10:10 | #4

    Ya lo. tok tok tok onni. LRT coming soon ok?

  5. kenneth123
    kenneth123
    July 6th, 2014 at 16:38 | #5

    Bond :Bayan Lepas is the next satellite town with all these projecrs and improvements on traffics.

    LRT is coming to Bayan Baru, finally? At last. I have been waiting for such a long time.
    The D-Piazza Condo Promotional Brochure by developer among others selling points was a proposed LRT station. Yes, I still keep that brochure, an orange colour small booklet like :)

    Any way, I am thankful I still keep my 1300Sq ft condo as well. Although I rent out since OC.
    I am thinking when I retire, too old to drive, that condo will be useful with a LRT station nearby for old couple to travel.
    Please, and please let this be a reality. LRT system for Penang Island. Every one will benefit.

  6. kenneth123
    kenneth123
    July 6th, 2014 at 16:43 | #6

    I still keep the D-Piazza Condo promotional brochure.
    It is stated that a proposed LRT station nearby.
    I hope this LRT station will become a reality. I still keep my 1300sqft condo, for rental since OC

  7. joe
    July 6th, 2014 at 17:20 | #7

    “….a link cutting across the island from Bayan Lepas to Tanjong Bungah.”

    I thought the Consortium Zenith BUCG Sdn Bhd will be building a link from teluk bahang all the way link to Tun Lim Chong Eu highway till bayan lepas?

    Why still need this extra Bayan Lepas to Tg Bungah link?

    Should build highway / tunnel link to Balik Pulau area…..prosper that area….rather than keep reclaiming n spoiling the pretty sea coast…

  8. dude
    July 6th, 2014 at 18:37 | #8

    @joe

    This is LRT, not highway.

  9. IsaacTan
    IsaacTan
    July 7th, 2014 at 09:45 | #9

    Seems like LRT a never ending story since few years back but till today still haven’t get executed.
    Hopefully this round will not be a just talk and no action plan again.
    Pg is getting more & more congested. In order to bring up the economy, supporting infrastructures are also very important.
    If Singapore can do it…believe Pg also can. All the best and let’s us all pray that Pg will prosper and shine!

  10. Musang King
    July 7th, 2014 at 10:09 | #10

    Looks like Bayan Lepas is the next boom area and investment area. Any one can recommend good projects to invest in? Residential please

  11. winter8
    July 7th, 2014 at 10:23 | #11

    @IsaacTan
    You need to understand. For the mass transportation to build in a state, it requires federal government approval. Why is it taking so long to implement, because still waiting for approval, you should know why lol.
    A successful federal government should think people first, rather their benefit/power, regardless which party controlling the state.

  12. IsaacTan
    IsaacTan
    July 7th, 2014 at 10:34 | #12

    @winter8
    Bo Bian la….all Cronies Pte Ltd.
    If you never award to their CRonies Pte Ltd, for sure they give you a hard time.
    Just like the airport expansion issue. What we can do are just hoping the best for PG.

  13. yy
    July 7th, 2014 at 10:41 | #13

    would The Light get a station?

  14. signer
    July 7th, 2014 at 10:58 | #14

    sure The light wouldnt get a station, it should route through jelutong, usm, bayan lepas, airport as it is more resident, more congested and more practical

  15. gary
    July 7th, 2014 at 12:00 | #15

    Good question…. whether the lrt go from the Lim Chong Eu express or the back way. Anyone have this info?

  16. Musang King
    July 7th, 2014 at 13:23 | #16

    @gary

    @chingching
    Ask chingching who has insider info. All hail chinching

  17. lkt
    July 7th, 2014 at 13:38 | #17

    @chingching

    Please share. I have a condo unit near the SPICE. Hopefully there is a station there within walking distance.

  18. yoyo
    July 7th, 2014 at 14:24 | #18

    This topic sounded like “goreng nasi semalam”…..I bet this will not be done until the day one same gov rules the state and federal…

    http://www.thestar.com.my/story.aspx/?file=%2f2011%2f11%2f3%2fnorth%2f9825322

  19. Musang King
    July 7th, 2014 at 14:26 | #19

    I think SPICE sure to have station. That you dun worry. Common sense will tell you that.

  20. yoyo
    July 7th, 2014 at 14:31 | #20

    @Musang King

    You think this as easy as building a bus stand? haha.

  21. Musang King
    July 7th, 2014 at 15:10 | #21

    @yoyo
    Hey Toyo….sure not easy but this is SPICE we are talking about.Perhaps you are not local

  22. yoyo
    July 7th, 2014 at 15:25 | #22

    @Musang King
    Still dreaming? Do you think federal will give license to build? Wait got license then only you beg the station build infont of you house la..haha…

  23. IsaacTan
    IsaacTan
    July 7th, 2014 at 15:36 | #23

    Just wondering how was the undersea tunnel?
    Same case as this LRT that need federal Gov approval?

  24. yoyo
    July 7th, 2014 at 15:57 | #24

    @Musang King
    Hey Musang King…does the undersea tunnel needs federal gov to approve? will common sense tell you this?

  25. Sg Ara Betty
    July 7th, 2014 at 16:35 | #25

    What’s wrong with this yoyo? You are so negative. Found out your spouse cheating on you is it?

  26. IsaacTan
    IsaacTan
    July 7th, 2014 at 16:39 | #26

    How to demark which need federal gov (FG) approval?
    Previously undersea tunnel looks like a go ahead without FG approval but LRT, airport expansion needed.
    How about port expansion?

  27. yoyo
    July 7th, 2014 at 16:42 | #27

    @Sg Ara Betty
    i suspect the one I slept with last night was your spouse…damn it! So regret!

  28. joe
    July 7th, 2014 at 16:45 | #28

    IsaacTan :How to demark which need federal gov (FG) approval?Previously undersea tunnel looks like a go ahead without FG approval but LRT, airport expansion needed.How about port expansion?

    check Malaysia constitution….. bridge/LRT/MRT/tram/public transport all need federal gov approval…..undersea tunnel was not mentioned in it…..so this is a loop hole….hehe

  29. yoyo
    July 7th, 2014 at 16:46 | #29

    @IsaacTan
    As far as my knowledge, undersea tunnel does not need federal gov to approve. However if this mega project involves funding from other county then it needs federal gov to be the guarantor. It seems like state gov executed this project via swapping land hence I think it did not go through federal.

    All the public trasnport needs federal gov to approve.

  30. IsaacTan
    IsaacTan
    July 7th, 2014 at 17:02 | #30

    @joe

    @yoyo

    Thanks Guys…..but anyone know if the undersea tunnel still alive or already undersea …..LOL

  31. Billy Lee
    July 7th, 2014 at 18:59 | #31

    You people no shame. Sleeping around also announce to the world. What is going on!

  32. Lim
    July 7th, 2014 at 23:13 | #32

    Really hope this LRT project can success on the island. We really need better infrastructure to drive penang economic.

  33. F16
    July 8th, 2014 at 11:00 | #33

    Yes, you do need federal approval for LRT/monorail. Building a light rail system is not that difficult, but the politics is….:D

    Giving this project to PDP is a good move, because PDP will be responsible to get approval from federal for the project. And with that kind of money on the table, someone will be very motivated to start working.

  34. kevin tan
    July 11th, 2014 at 15:33 | #34

    talk only nothing materialise but traffic jam materialise and improve everyday.

  35. Frank
    July 11th, 2014 at 16:20 | #35

    @kevin tan

    Can use 2nd bridge, hardly see cars.

  36. IsaacTan
    IsaacTan
    July 11th, 2014 at 17:04 | #36

    Now i think the point was congestion in Pg island itself….so not really about which bridge to use

  37. Economic Crisis
    July 12th, 2014 at 19:55 | #37

    After the second bridge completed as mega project in Penang, any upcoming mega projects will just talk only! E.g. The undersea tunnel will complete in 2025; so how about the LRT? In 2050? The LRT is underground or monorail on top? If it is a monorail or train or cable car on top, forget it, it is just a crap.

  38. Economic Crisis
    July 12th, 2014 at 19:57 | #38

    Penang is just can’t move as fast as Kuala Lumpur and Johor Bahru. How to become International City? Tokok only!

  39. kevin tan
    July 13th, 2014 at 12:00 | #39

    wait for Dap taking over federal then it will sound a bit realistic otherwise its rather show or mere empty challenge.undersea tunnel will be completed in2025 but the swap land will be built and sell soon.make money 1st and build tunnel later and charge toll for don’t know how many years.Good biz!!malaysia gov regardless which political parties are all craps just the matter of who is in power and being able to abuse it

  40. Ram
    July 17th, 2014 at 09:50 | #40

    The transportation project funding should come from Federal. Penang State should not contra land for these projects. Anyone can get new apartment in Penang Island (excluding Balik Pulau) below RM 300K now? If land for projects strategic continues one day the properties in Penang will be most expensive in Malaysia. The state should fight for funding from Federal Government.

  41. uncle T
    uncle T
    July 17th, 2014 at 11:09 | #41

    we have to do ourself better, only have more people and more investor come in, we can see the penang government was develop batu kawan for affordable housing and some developer was following the state to build affordable house at paya terubong, tanjung tokong, teluk kumbar and so on. yes things will have positive and negative, for now the federal government no want to do any things in penang should we wait and wait. Had waiting for 20 over years nothing much they did.

  42. teh
    July 17th, 2014 at 11:39 | #42

    Economic Crisis :
    After the second bridge completed as mega project in Penang, any upcoming mega projects will just talk only! E.g. The undersea tunnel will complete in 2025; so how about the LRT? In 2050? The LRT is underground or monorail on top? If it is a monorail or train or cable car on top, forget it, it is just a crap.

    All these mega construction works will fuel the next wave of growth for Penang. The 17.5km LRT should be ready by 2020. Then the undersea tunnel by 2025.

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