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Wednesday, 28 October 2015 | MYT 8:59 PM

China firm wins RM2.3bil Penang reclamation contract

 From left: CCCC Tianjin Dredging Co Ltd deputy general manager Liu Shu Dong, CCCC Malaysia managing director Fang Zhen Ru, E&O chairman Datuk Azizan Abdul Rahman and E&O deputy MD Eric Chan Kok Leong.

From left: CCCC Tianjin Dredging Co Ltd deputy general manager Liu Shu Dong, CCCC Malaysia managing director Fang Zhen Ru, E&O chairman Datuk Azizan Abdul Rahman and E&O deputy MD Eric Chan Kok Leong.

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) has awarded a contract to China Communications Construction Company (M) Sdn Bhd (CCCC Malaysia) to undertake the land reclamation works for Seri Tanjung Pinang Phase 2 (STP2) in Penang.

In a filing with Bursa Malaysia, E&O said its subsidiary Tanjung Pinang Development Sdn Bhd had issued a letter of award (LOA) to CCCC Malaysia, a wholly owned Malaysian subsidiary of China Communications Construction Company Ltd (CCCC), to undertake the works. 

E&O group managing director Datuk Seri Terry Tham Ka Hon said the group had gone through an extremely rigorous tender process that included the pre-qualification of potential contractors prior to the tender submission.

CCCC is listed on the Shanghai Stock Exchange and the Main Board of the Hong Kong Stock Exchange. The group is the largest infrastructure construction and dredging company in China and the world’s largest dredging company in terms of both total capacity of trailing suction hopper dredgers and total cutter section dredgers, the key machinery in the reclamation dredging process.

The LOA comprises two parts. The first involves the acceptance of the tender to reclaim Phase 2A of STP2 (Package 1) for a contract price of about RM1.035bil. Phase 2A of STP2 measures approximately 384 acres comprising 253 acres to be reclaimed off Penang’s northeast coast and 131 acres on the Gurney Drive foreshore.

The second part of the LOA covers the conditional award for the proposed reclamation works for Phase 2B and Phase 2C of STP2 (Package 2) to CCCC Malaysia for a contract sum of about RM1.285bil, subject to adjustments for exchange rate and fuel price fluctuations, and changes in cost if applicable. Phases 2B and 2C measure about 507 acres in total. 


Tags / Keywords: Corporate News , Property , Eastern Oriental Bhd

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