PETALING JAYA: Gamuda Bhd’s 60%-owned subsidiary SRS Consortium Sdn Bhd will undertake the development of Island A under the Penang Transport Master Plan (PTMP) through the deployment of private sector capital after the Penang state government (PSG) on Thursday accepted the terms of the project development as contained in SRS’s proposal.
The components comprised in the project development of Island A will be implemented via a project development model in joint venture with the PSG. A project developer company will be formed between SRS and a PSG-appointed entity.
As the funding of these components is to be borne entirely by the project developer, the delivery of these components will no longer be carried out under the project delivery partner (PDP) model under the master agreement. A supplemental agreement to the master agreement will be executed to effect the change. All other components comprised in the master agreement will remain under the PDP model.
The project developer has the sole, exclusive and full right to carry out the project development of Island A comprising the project development master planning including securing planning approvals and other approvals for the common infrastructure (including smart city features), investor marketing and land sale of the reclaimed lands (MPIL); and the design, construction and completion of Island A, common infrastructure (including smart city features), PIL 2A and Airport Link (works).
A special purpose vehicle to be set up by SRS will hold a 70% stake in the project developer while the PSG nominee Penang Infrastructure Corporation Sdn Bhd will hold the remaining 30% stake.
Meanwhile, the works will be awarded to a turnkey contractor, whereby a special purpose vehicle to be set-up by SRS will hold a 70% stake in the turnkey contractor while the PSG nominee will hold the remaining 30% stake.
The turnkey contractor will award the works mutually identified by the PSG and the project developer as “Phase 1 reclamation” to Gamuda’s wholly owned subsidiary Gamuda Engineering Sdn Bhd on a design and build lump sum contract basis whilst all other works (save for Phase 1 Reclamation) will be tendered out by the turnkey contractor.
“Gamuda will fund its share in the project developer and turnkey contractor joint venture companies through internally generated funds and bank borrowings. The proposal is expected to contribute positively to the future earnings of the Gamuda group,” Gamuda said.
Trading in Gamuda’s shares will resume on Friday after it was suspended on Thursday due to the announcement.
Island A will be implemented via a project development model in joint venture with the Penang state government. – Gamuda website pix
