Gamuda selected as PDP for Penang project

The group will have to provide a funding plan that includes a RM1.3b bridging loan to the Penang govt over the reclamation of Island A


GAMUDA Bhd has been appointed as the Project Delivery Partner (PDP) for the implementation of the Penang Transport Master Plan (PTMP) by the state government.

In a filing yesterday, the construction and engineering group stated its 60%- owned subsidiary SRS Consortium Sdn Bhd will receive a PDP fee between 5% and 5.75% of the total estimated development cost, which is estimated to be around RM46 billion.

SRS Consortium executed the master agreement with Penang yesterday in respect of the appointment of the PDP to manage and deliver the PTMP.

Among the responsibilities and obligations of SRS under the agreement includes completing the different public transport components including highways and the provision of new reclamation sites comprising islands A, B and C of the Penang South Reclamation.

The filing also stated Gamuda will have to provide a funding plan that includes a RM1.3 billion bridging loan to the Penang government over the reclamation of Island A. The group will also oversee the creation and formation of Island A under the Penang South Reclamation project.

“The PDP will after the execution of the master agreement look into the implementation of the following, all of which form part of the PTMP,” it said.

Among others, Gamuda will supervise a rail transit comprising a rail line with a total of 20 stations including four interchange stations, one depot at Penang South Reclamation and five potential park-and-ride sites, with a route length of 23.5km.

Additionally, it will also look after a dual-three carriageway highway which commences at the Gurney Interchange, traverses southwards through the Timur Laut and Barat Daya districts and terminates with an interchange at the Bayan Lepas Expressway/Tun Dr Lim Chong Eu Expressway.

All of which with an approximate length of 19.5km consisting of six interchanges involving the construction of viaducts, tunnels and embankment roads.

Gamuda will also oversee a dual-three carriageway highway which commences with a connection to/from the existing Penang Second Bridge and traverses as a viaduct in a southwest direction along Jalan Batu Maung/Jalan Permatang Damar Laut passing through Taman Sunway Mutiara and connects to the proposed arterial road in Island A of the Penang South Reclamation with an interchange.

The total alignment is approximately 5km and is more particularly described in the master agreement, the filing reads.

Besides that, the common infrastructure works to be constructed on Island A of Penang South Reclamation and the master planning for Penang South Reclamation as well as investor marketing and the tender and sales of the lands comprising Island A of Penang South Reclamation will also be under the purview of Gamuda.

In terms of target cost, fee and completion dates, Gamuda said each PTMP Component shall have its own separate target cost and target completion date that will be discussed at a later stage and to be mutually agreed.

“Gamuda shall fund its share in the PDP through internally generated funds and bank borrowings,” it added.

While the PTMP is not expected to have any material effect on the earnings of the Gamuda Group for the financial year ending July 31, 2020, it is expected to contribute positively to the future earnings of the Gamuda Group.

The PTMP was first mooted in 2009 before it was approved by the then Pakatan Harapan government last year.

The 4,500-acre three islands’ project was expected to house over 446,000 people.

Gamuda closed six sen or 1.65% higher at RM3.70 yesterday on the newsflow, valuing the company at RM9.3 billion.