Benalec's Pengerang reclamation project gets DoE nod


Sand being pumped into an area in Pengerang that is being reclaimed by Dialog.

KUALA LUMPUR: Benalec Holdings Bhd has received the Department of Environment’s (DoE) conditional approval for the reclamation works on 677.2ha in Teluk Ramunia for the development of Pengerang Maritime Industrial Park.

The marine construction services company told Bursa Malaysia that the Detailed Environment Impact Assessment (DEIA) study (DEIA) submitted by its 70% owned subsidiary, Spektrum Budi Sdn Bhd, and Johor State Secretary Inc had been approved by DoE on Jan 7.

The Pengerang project is Benalec’s second reclamation project in Johor.

In January last year Benalec had received the DoE’s go-ahead to start work on its other reclamation project for the 1,410ha Tanjung Piai Integrated Petroleum and Maritime Industrial Park in Pontian. That project is carried out by 70% owned Spektrum Kukuh sdn Bhd, but actual reclamation works had not started as of October last year.

Benalec’s Pengerang venture is earmarked as a container port to complement the nearby Petroliam Nasional Bhd’s Refinery and Petrochemical Integrated Development (Rapid) project.

The Doe’s approval is valid for two years from the date of the letter of approval.

Its approval of the study is conditional on various terms and conditions, such as the reclamation works must be carried out in two phases (477.8ha and 199.4ha) and include the construction of drainage channel, construction of jetty and development of land reclamation.

Also, Spekrum Budi must get the necessary approvals from the state government and relevant governmental departments before the proposed project is implemented.

Moreover, the condition of approvals and recommendations in the DEIA report must be incorporated as terms and conditions to be fulfilled by any contractor/subcontractor involved in the implementation of the proposed project of tender documents and contractual agreements.

Benalec said the proposed project was expected to provide the group with the springboard for enhancing its business sustainability and upscaling its growth prospects over the next 10 years and beyond.

Benalec signed a development agreement with the state of Johor in late 2011, which gave the company the right to reclaim land at two sites in south Johor, namely Tanjung Piai for 20 years and Pengerang for 10 years.

According to reports, Benalec’s partners in Spektrum Budi and Spektrum Kukuh are the crown prince of Johor, Tunku Ismail Idris Tunku Ibrahim and Daing A Malek Daing A Rahaman.

Benalec shares gained half a sen to 55 sen on Tuesday.

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