The Penang South Island (PSI) reclamation project, which has been scaled down from three islands to one following a request from the prime minister, will finally kick off with Gamuda Bhd starting Phase 1 of the reclamation works worth RM3.717 billion on July 1.

This involves about 1,260 acres of the total 2,300 acres to be reclaimed for the island known as Silicon Island (also known as Island A), which the project developer Silicon Island Development Sdn Bhd — the 70:30 joint venture between Gamuda and the Penang state government — had previously estimated would cost RM6 billion in total to reclaim, with the cost of common infrastructure expected to be RM2.5 billion.

Under the project development agreement executed in March between the Penang state government and Silicon Island, which is undertaking the development entirely through the deployment of private sector capital, Silicon Island will award the full scope of Island A’s reclamation — comprising both reclamation and common infrastructure works and the building of a highway — to Gamuda’s wholly owned SRS TC Sdn Bhd as the turnkey contractor.

In a filing Thursday (June 22), Gamuda said Phase 1 of the reclamation works has now been awarded to SRS TC Sdn Bhd, who has in turn awarded it to Gamuda Engineering Sdn Bhd, another Gamuda wholly-owned unit.

The job is expected to be completed by June 30, 2030.

Source: TheEdgeMalaysia.com