Penang says will ask concessionaires to waive secrecy in land reclamation deals

Lim claimed that the concession agreements for the reclamation projects are worth 'tens of billions' so the state needed time to look through the agreements. — Picture by K.E. Ooi

GEORGETOWN, Dec 15 — Penang will ask land reclamation project concessionaires here to forego the confidentiality of their agreements in order to declassify the documents, Penang Chief Minister Lim Guan Eng said.

The Penang lawmaker, who was under pressure from the civil society groups and political opponents over the number of land reclamation projects in the state, said the agreements signed by the previous administration included confidentiality clauses that stopped him from releasing their contents without permission.

"We don't have the power to instruct them to waive their rights under the confidentiality clauses because they are protected by the agreements," Lim said.

He claimed these concession agreements for the reclamation projects are worth "tens of billions" so the state needed time to look through the agreements.

"Let the legal advisor look through these agreements first, write to the concessionaires and by January we should have the answer but worse comes to worse, we will declassify agreements approved by our administration first," he said in a press conference at his office today.

Yesterday, Penang Barisan Nasional Chairman Teng Chang Yeow told the state government to instruct the land reclamation concessionaires to waive their rights under the confidentiality clause.

Teng pointed out that back in 2007, then prime minister Tun Abdullah Ahmad Badawi had declassified highways agreements after instructing the concessionaires to waive their rights under the confidentiality clause.

He said Penang could similarly instruct the land reclamation concessionaire, E&O Bhd, to waive its rights instead of making an about turn on the state's decision to declassify all these agreements.

Today, Lim said Teng was either ignorant or feigning ignorance of the law by making such a suggestion, especially when the agreements were approved by the previous BN administration.

He also accused Teng of trying to blame him and the current administration for the confidentiality clauses approved by BN, saying the latter should explain as he was a state exco member when the deals were signed.

He added that the state wants to declassify all land reclamation agreements, both approved by BN and the current administration, but they needed time to go through the confidentiality clauses.

Lim has accused the previous BN state government of approving a total 3,241 acres of land reclamation projects for the state while the current administration approved only 60 acres.

When pressured to cancel the previously approved projects, Lim claimed it could bankrupt the state government as compensation could go up to RM1 billion.

Gerakan and the civil society have been pressuring Lim to reveal the concession agreements to prove that cancelling those projects would lead to RM1 billion in compensation payments.

This article first published in The Malay Mail - 16 Dec 2015

We care about fishermen's plight, says govt

This article first published on The Malay Mail - 16 Dec 2015 (P3)

GEORGE TOWN — The state government will look into the welfare of fishermen before making decisions on land reclamation projects. State executive councillor Chow Kon Yeow said the government was always concerned about their plight.

"Look at the history of land reclamation projects in Penang and every other project," the local government, traffic management and water mitigation committee chairman said.

Hundreds of fishermen and residents demonstrated against the proposed land reclamation project at Permatang Damar Laut on Sunday. The area is rich in marine life and is the main source of livelihood for the residents.

"It was a natural reaction by the fishermen since there is a proposed development project in their area and their income would be affected," Chow said after launching a food composting machine at Tanjung Bungah market.

"It is an opportunity for them to highlight the issue to the authorities."

He said studies were still being conducted on the viability and feasibility of the project. The state government claimed two­thirds of the fishermen in Permatang Damar Laut had accepted its proposal to carry out the reclamation project.

Executive councillor Datuk Abdul Malik Kassim said the residents had supported the project after the government promised to protect the community's interest.

The Batu Maung assemblyman said the state government held several dialogue sessions with the residents to safeguard their interest and livelihood.

The proposed project is to fund the state's RM27 billion Transport Master Plan (TMP), which includes an undersea tunnel, three highways, an.LRT system, two monorails and a cable car project linking the island and the mainland.

The reclamation project will be undertaken by SRS Consortium — the master plan's delivery partner — as part of a land swap deal to fund the master plan.

About 120 fishermen and residents attended the last dialogue session with state government representatives led by Malik on Dec 9. Malik said he explained to those present how they would benefit from the project and the master plan, which would ensure efficient, reliable and affordable connectivity.

"Consultants from the consortium company will also meet them when conducting studies before undertaking the project," he said. Malik said land reclamation was not new in Penang as similar projects had been carried out in Jelutong, Gelugor and Tanjung Tokong.

He said SRS Consortium would conduct three detailed impact studies on natural and social environments, and marine lives before making

Penang ready to bare all

This article first published in The Malay Mail - 16 Dec 2015

Over 400ha of land to the south of Penang island to be reclaimed

This article first appeared in The Edge Financial Daily, on Dec 11, 2015. 

GEORGE TOWN (Dec 11): Some 1,000 acres (404.69ha) of land on the two isles to the south of Penang island that will be reclaimed as part of the state government’s land swap deal with SRS Consortium for the Penang Transport Master Plan (PTMP) have been earmarked for industrial development.

Recall that on Nov 27, SRS Consortium project manager Szeto Wai Loong said the two islands, measuring 1,300 acres and 2,100 acres, would be reclaimed at costs of RM7 billion and RM8 billion respectively. An 800-acre island next to the two islands had also been identified for further reclamation in future, pending the state’s needs.

Yesterday, Ideal Property Development Sdn Bhd (IPD) director Datuk Alex Ooi told reporters that the 1,000 acres earmarked for industrial development would have sites for the electronic and electrical sector, as well as light industries.

“There [is] no other industrial cluster which is as big as this in Southeast Asia, so we want to provide that space,” he said.

He said the RM27 billion PTMP is viewed as an economic transformation project for the state, with a five-time multiplier effect in terms of economic benefit from the project — some RM135 billion — and as such, is Penang’s growth catalyst.

Ooi said the remaining acreage would be allocated for a green lung (1,000 acres), dam, sewage plant and airport expansion, as well as administrative buildings, offices and residential units.

IPD, a subsidiary of Ideal Property Group, is one of the three players — including Penang-based Loh Phoy Yen Holdings Sdn Bhd — in SRS Consortium, the appointed PTMP project delivery partner that is led by Gamuda Bhd.

Ooi said the consortium spent more than RM10 million on preliminary studies for the land reclamation.

The reclamation, identified as a land swap model to finance the PTMP, is expected to take off in 2018 once federal and state approvals for the project have been attained.

It was previously reported that the cost of detailed environmental impact assessments for road, rail-based public transportation and the reclamation would amount to about RM300 million to RM400 million, and would be borne by the state.

A tender for the reclamation will be called once approvals from the authorities are given, and the detailed design for the rail-based segment is completed.

Meanwhile, Ooi said the Penang entities’ role in the project, including Loh Phoy Yen’s, is to provide local expertise for the project.

“Our job is to provide local expertise. We will liaise with local authorities, and carry out consultations with fishermen and other stakeholders. Some 90% [of the] feedback is favourable,” he said.

PiT notes and is happy of the following developing:

1. Penang Exco approves railway, highway lines for transport masterplan. 

2. The State Government will look into welfare of fisherman before making decisions on land reclamation projects.

More of these stories can be viewed via our blog and Facebook page. Stay tuned. 

Success of TMP hinges on Penangites’ support

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.

PTMP impact study due in six months

Source: The Sun Daily, 8 Dec 2015

sunbiz@thesundaily.com

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SHAH ALAM: Environmental and social impact studies on the RM27 billion Penang Transport Master Plan (PTMP) will be ready for public display in six months’ time, according to Gamuda Bhd managing director Datuk Lin Yun Ling.

“In the coming months, when it is completed, it will be put online and for public display. There will also be many rounds of consultation with the stakeholders and public,” he said, adding that the process needs to be very transparent.

Nevertheless, Lin said the project will not go ahead if it does not receive overwhelming support.

In August, SRS Consortium comprising Gamuda (60%), Ideal Property Development Sdn Bhd (20%) and Loh Phoy Yen Holdings Sdn Bhd (20%), was appointed as the Project Delivery Partner (PDP) by the Penang government to implement PTMP.

Under a land swap model to finance this mega project, the PDP will be given the rights to reclaim a sizeable amount of land on the island.

At a press conference yesterday, Lin said one “should not jump the gun” on the payment mode for the development of PTMP. However, he believes that the reclamation proposal is “what the company can come up with”.

“That one probably (is) the final stage of how are we going to be paid, the important thing is what the public thinks of this project. This is what the due process has to focus on,” he said.

Lin added that dissatisfaction among the public over the project is not due to the reclamation per se, but the large number of reclamation sites and transparency of the due process.

PTMP involves the construction of a light rail transit line, a monorail line, bus rapid transits and new highways.

“These projects have a lot of multiplier effects (and) are beneficial to the economy,” he said.

Lin noted that tender for the first and second packages of the Mass Rapid Transit Line 2 (MRT 2) project is underway and construction work is expected to begin before May next year. Gamuda and MMC Corp Bhd are the PDP for the MRT 2 project.

He also said Gamuda will invest RM3 to RM3.5 billion on its property development division in 2016 following the RM4.5 billion investment pumped in this year.

“This will bring us RM7 to RM7.5 billion, to a kind of gearing that we’re comfortable with, about 0.7 times equity,” he added.

Gamuda reported a net profit of RM682 million for the financial year ended July 31, 2015 (FY15), a 5.15% drop compared with RM719 million a year earlier.

On a pre-tax level, the infrastructure concessions contributed the most (44%) to the group, followed by property development (30%) and engineering and construction (26%).