Undersea tunnel study results still unannounced
17 June 2014It is not clear if the Penang tunnel project has received the green light to proceed as there is still no word on the feasibility study which was supposed to have been completed in April 2014.
But, the consortium awarded the project - Ewein Zenith (Consortium Zenith) - seems to be moving ahead as per the contract signed on 6 October with the Penang state government.
In a circular to shareholders filed with Bursa Malaysia (the exchange holding company) on 12 June, main project shareholder Ewein said it is ready to undertake the mixed development on Tanjung Pinang land it received as payment for the highway projects that will form part of the overall tunnel links.
The other shareholders in Ewein Zenith are Zenith Construction, Beijing Urban Construction Group, Juteras, and Sri Tinggi .
The MYR 133M (USD 41M)cost for the 1.485ha development will be financed via advances from Ewein Land (20%), bank borrowings (40%) and internally generated funds (40%).
The development is located near the Seri Tanjung Pinang new township being built on a reclaimed land off the eastern side of Jalan Tanjung Tokong by Eastern & Oriental Group in phases.
Consortium Zenith has yet to decide on what mix of commercial and residential properties it will develop on the plot.
Ewein said the land is to be vested by the Penang state government. "The alienation of the land is partial payment for the works to be carried out by Consortium Zenith for the major road project and the third link tunnel project there and it will be treated as Consortium Zenith's contribution."
In the contract signed last year, Consortium Zenith was awarded the construction, feasibility studies and detailed design work of a MYR 6.3bn (USD 1.9bn) integrated road transport project comprising:
- a 12km paired road between Tanjung Bungah and Teluk Bahang,
- a bypass each between Air Itam and Tun Dr Lim Chong Eu expressway, and between Gurney Drive and Tun Dr Lim Chong Eu expressway, and
- a 6.5km undersea tunnel connecting the Penang Island and the mainland.
Penang isn't paying any cash for the project as the consortium will be given 44.5ha of freehold land in Tanjung Pinang (at RM1,300 per sq ft) as payment.
Ewein said the proposed mixed development now being undertaken forms part of this 44.5ha of freehold land identified in the 6 October 2013 contract.
It also said that once the project is completed, Consortium Zenith is permitted to collect toll for the undersea tunnel for 30 years at toll rates similar to the toll rates of the Sultan Abdul Halim Muadzam Shah Bridge - also known as the Penang Second Bridge.
