This article first appeared in The
Edge Financial Daily, on December 8, 2015.
KUALA LUMPUR: The successful
implementation of the RM27 billion Penang Transport Master Plan (PTMP), of
whichGamuda-led SRS Consortium Bhd is the project delivery
partner (PDP), hinges on the support of the residents there.
Gamuda group managing director Datuk
Lin Yun Ling said the support from Penang residents is crucial, and the
implementation of the project is riding on the outcome of a due process
exercise, which will take six months to complete.
“For now, the [PTMP] is just a plan.
The next step in [implementing it] is the due process, which involves impact
studies on the environmental and social aspects of the plan, and this has
already commenced by an independent consultant appointed by the Penang state
government,” he told reporters after Gamuda’s annual and extraordinary general
meetings yesterday.
“If there is no overwhelming support
for the PTMP from the people of Penang, then we should not go ahead [with it],”
he added.
However, Lin declined to comment on
the magnitude of the percentage that would constitute overwhelming support.
“I wouldn’t want to go into that,
that’s an open ended debate,” he said.
Lin, however, noted that there are
some grouses from the people of Penang on the Penang government’s land
reclamation process.
“They are not unhappy about
reclamation per se, [but] their perception is that the state is reclaiming in
too many places, and the due process [for the reclamation process] is not
transparent, and this needs to be cleared up,” said Lin.
“The results from the detailed impact
studies conducted will be shared with the key stakeholders and the general
public, and it will outline the advantages and disadvantages of the PTMP [among
others],” he added.
On its part, Gamuda will undertake
its responsibility as PDP in ensuring that all the requirements in terms of
data gathering, as well the selection of appropriate consultants for the
implementation of the PTMP are undertaken in a transparent manner.
Penang-based Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd are the two other
parties of the Gamuda-SRS Consortium, with a 20% stake each in the venture.
On the payment method of the PDP,
which could be in the form of land swaps or land reclamation rights, Lin said
it is too soon to say.
“I think it will be jumping the gun
[to talk about the payment method] now; the focus at present should be on the
public’s perception of the PTMP, and this is where the due process comes in,”
he said.
On Gamuda’s outlook for 2016, Lin
said it is still positive about the construction industry.
“The government is embarking on a lot
of railway projects, so it is a good time for capital investments in
infrastructure projects.
“For Gamuda, in 2015 we have spent
about RM4.5 billion on our property development and related infrastructure
projects in Malaysia, Vietnam, Singapore and Melbourne, Australia, and for 2016
we will probably invest another RM3 billion in capital expenditure (capex),
which will bring our total capex [for the two years] to RM7.5 billion,” he said.
As for the status of the sale of its
40%-owned water asset Syarikat Pengeluar Air Selangor
Holdings Sdn Bhd (Splash)to the Selangor state government, Lin said the
appropriate price for the sale would be at the book value of the asset.
“We are expecting an offer for the
asset at its book value, which at present is RM3 billion, based on previous
news report published. I believe the state government has appointed an
independent valuer to perform a valuation of Splash, and what we would like is
for that report to be shared with us, and the public as well,” said Lin.
Gamuda (fundamental: 1.3; valuation:
1.4) shares closed up 13 sen, or 2.84%, to RM4.70 yesterday, bringing a market
capitalisation of RM11.28 billion.
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