KUALA LUMPUR: Deputy Prime Minister Tan Sri Muhyiddin Yassin has questioned the logic behind the proposed third link between Penang island and the mainland, warning it may end up being a waste of funds.

“It is up to the Penang Government to decide on this project. But I must caution them against wastage.

“Such a mega-project would require a lot of money. What is the need for a tunnel, I don’t know.”

Muhyiddin said there was no evidence the second Penang bridge, which is halfway towards completion, would be inadequate to handle the increasing traffic between the island and the mainland.

“The second bridge is being built with the future in mind. Allow this project to be completed first. then look at the situation over time.

“If it solves the problem, why would they (the state government) need to spend so much?” he asked, responding to the announcement by Penang Chief Minister Lim Guan Eng on the proposed third link that would be in the form of an undersea tunnel.

Source: The Star

Andaman Series, the second phase of Quayside Seafront Resort Condominium by E&O Property Development at Seri Tanjung Pinang, Penang.  This exclusive condominium boasts a vast array of modern and green amenities. It hosts a 7-acre landscaped garden, a 1-acre open park, a private 4.5-acre residences-only signature waterpark and 1.4km long of jogging/cycling path.

Location : Quayside, Seri Tanjung Pinang, Penang
Property Type : Seafront Resort Condominium
Built-up Area: 915 sq.ft. onwards
Indicative Price: RM 1,105,000 onwards
Developer : E&O Property Development

KUALA LUMPUR (Nov 15): The Penang government has proposed to undertake four road infrastructure projects worth up to a combined RM8 billion to reduce traffic congestion in the state. The move is deemed crucial to manage transportation needs of an expanding population there amid higher tourist arrivals, Chief Minister Lim Guan Eng said here on Monday at a media briefing.

According to the pre-qualification exercise document given out during the briefing, the Penang government plans to build a 6.5km undersea tunnel connecting Butterworth on the mainland and Gurney Drive, from which a 4.2km bypass would be constructed linking it to the Tun Dr Lim Chong Eu Expressway.

The plan will also see the construction of a 4.6km bypass from Bandar Baru Air Itam to the Tun Dr Lim Chong Eu Expressway, apart from a 12km paired road to the existing coastal road linking Tanjung Bungah and Teluk Bahang.

It is also the state government's intention to establish a light-rail-transit network along the proposed alignment, according to the document.

Lim said these projects represent a long-term plan for Penang as its existing road network would be insufficient to accommodate traffic volume in the near future. He said the proposed infrastructures would reduce the congestion along the tourism belt along Batu Ferringhi, besides residential areas such as Paya Terubong and the heritage sites within George Town.

Penang has a population of 1.52 million, still growing – the state is expected to house two million by 2020, according to Lim.

"This is our vision and we hope the Federal Government will participate," Lim said at the media briefing.

He did not specify the cost for each project, but only indicating that the total cost would range between RM5 billion and RM8 billion.

Lim said these public-private partnership projects would be undertaken via open tenders involving domestic and foreign construction companies. He said the state government would finance these projects via land swaps or toll collections.

Lim said the pre-qualification exercise for bidders would begin tomorrow and letter of awards would be issued to winners by September 2012 based on the best prices offered. He said the state may award all four projects to a single construction company or one project each to four winning bidders.

Construction work, which will take three years to complete, is anticipated to start in 2015 following feasibility studies.

The chief minister also indicated that while he is not in favour of elevated transportation structures which could adversely affect heritage buildings in the state; he was still "willing to consider other views" on such proposals.

The four proposed infrastructure projects coincide with the state government's plans to build more affordable homes in the state. Lim was quoted as saying over the weekend that the state authorities are setting aside RM500 milllion, from the sale of a piece of 41.5ha government-owned prime land along the Tun Dr Lim Chong Eu Expressway, to finance the construction of affordable houses in the state.

Lim had indicated that 81ha in Batu Kawan had been identified for the affordable home initiative which includes about 15,000 residential units worth between RM72,000 and RM220,000 each.

SOURCE: The Edge Property

KUALA LUMPUR, Nov 14 — The Penang government today announced an ambitious RM8 billion plan to construct four major road and tunnel projects that aim to reduce traffic congestion in the state.

Touting it as the state government’s biggest infrastructure exercise to date, Penang Chief Minister Lim Guan Eng said the projects — all of which will be conducted via open tender — will also allow greater access between the island and the mainland.

The proposed projects are a third (tunnel) link connecting Gurney Drive to Seberang Perai North District, a by-pass connecting Gurney Drive to the Tun Dr Lim Chong Eu expressway, a link between Bandar Baru Air Itam to the same expressway, as well as a paired road to the existing coastal road from Tanjung Bungah to Teluk Bahang.

“We need a northern link connecting Gurney Drive to Butterworth, to make it easier for people in the mainland to come to the island, and this will ease up congestion in addition to the two Penang bridges.

“The estimated costs for this project will be between RM5 [and] RM8 billion and expected to be completed by 2020,” Lim told reporters here.

The Penang CM said the state government will not provide any payments for the projects, and that the costs incurred will be recovered through a “competitive land swap” deals with prospective companies.

Lim said his administration will provide a preliminary financial proposal that will include the planned financing structure as well as bids to recover costs.

“The proposed land swap will involve the best prime land in Penang, which is in Gurney… the price of land in Penang will increase over the next few years, and this will benefit the companies who will undertake the road and tunnel projects.”

He also said his administration was also looking at the possibility of conducting a toll system for the projects once they are completed, but added this was provisional and would depend on what interested companies had to offer.

A pre-qualification exercise briefing for prospective companies will be held in Penang on November 29. Application and questionnaire pro-forma forms will be given out then and bidders must submit the forms by 12pm, January 2012.

Works will tentatively begin sometime in 2015.

Source: The Malaysian Insider

PETALING JAYA: Dijaya Corp Bhd and Ivory Properties Group Bhd shares were up after the companies announced a tie-up for a mixed-property project with a gross development value of RM10bil in Bayan Mutiara, Penang.

Dijaya rose 3.6%, or 5 sen, to RM1.44 while its warrants advanced 6.5%, or 3 sen, to 49 sen. Ivory Properties added 7%, or 7 sen, to RM1.07.

Dubbed Penang World City, the project will be undertaken by joint-venture vehicle Tropicana Ivory Sdn Bhd (TISB), which is 49% owned by Dijaya and 51% by Ivory Properties. TISB was set up on Oct 14.

Penang World City will be built on a 102.56 acre site, of which 35 acres is to be reclaimed. It will comprise residential units, a shopping mall, office suites, office towers, a hotel, retail spaces and an open mall with a boulevard.

The land is being bought for RM1.08bil from state-owned Penang Development Corp.

Bayan Mutiara is a new development hub in the eastern part of the Tun Dr Lim Chong Eu Expressway and is in the vicinity of Sungai Nibong.

Ivory Properties has proposed to finance the project via a renounceable rights issue of 186,000,000 new ordinary shares of 50 sen each as well as 186,000,000 new free detachable warrants.

Dijaya, meanwhile, will extend financial assistance to TISB in the form of shareholder advances, guarantee, indemnity or collateral of up to RM525.4mil, or 49% of the total consideration of the development land.

Analysts contacted by StarBiz have a positive view of the project, citing its prime location as a major plus factor.

“Land in Penang is scarce and the outlook for housing in the Bayan Mutiara area is booming,” an analyst said.

“It is not easy to get land in Penang for that price. Property developers prefer Johor Baru because land is much cheaper there.”

Another local bank-backed analyst said although he liked the land, he considered it pricey. At RM240 per sq ft, it was comparably higher than IJM Land Bhd’s land further north of the island that was purchased at RM50 per sq ft. IJM Land has a 150.24-acre mixed-development called Light Waterfront Penang.

The analyst also said the upside for Ivory Properties’ stock would be capped at around 30% as its share base would be diluted by two to three times following the rights issue.

He added that the choice of office towers in the development mix was surprising as the demand for office space in Penang was tepid.

Nonetheless, he said the project was still at its early stage and was subject to change.

“We haven’t seen a detailed breakdown of the development components yet but the residential portion is likely to be larger,” he said.

Penang World City is scheduled to be completed in eight years. Work on the first phase is scheduled to begin at the end of next year.

SOURCE: The Star