KUALA LUMPUR: China Communications Construction Company (M) Sdn Bhd will undertake the land reclamation for the Seri Tanjung Pinang Phase 2 (STP2) project in Penang under a RM1.078bil deal.
Lifestyle property developer Eastern & Oriental Berhad (E&O) said on Friday its subsidiary Tanjung Pinang Development Sdn Bhd had signed the reclamation contract for the STP2.
“The reclamation contract, for a lump-sum contract price of RM1.078 billion, sets out the terms and conditions to be adhered to by the signatory parties with regard to the reclamation process of STP2,” it said.
Recall, Tanjung Pinang Development had issued a letter of award to CCCC (M) in October 2015.
CCCC (M) is a unit of Malaysian subsidiary of China Communications Construction Company Limited (CCCC) and it was set up to undertake the reclamation of STP2.
In December 2015, Tanjung Pinang Development had secured a RM1.084bil syndicated banking facilities from Maybank Islamic Bank Bhd and RHB Islamic Bank Bhd.
The facilities were to be used to part-finance the reclamation and infrastructure of the STP2 project.
“Mobilisation of works for STP2 is targeted to commence at the end of January. In compliance with the prevailing regulatory requirements, the key requirements and authorities’ approvals for STP2 are already in hand,” it said.
E&O said they included the approval of the project’s detailed environmental impact assessment (DEIA) study by the Federal Department of Environment, endorsement of the STP2 masterplan and granting of the Planning Permission for STP2 reclamation by the Penang state authorities.
On Thursday, StarBiz reported E&0 was been given three additional years to complete the reclamation works for phase 2 of the RM25bil Seri Tanjung Pinang development. (Click here for story.)
Tanjung Pinang Development and the Penang state government inked on Wednesday a supplemental agreement to the 1992 concession agreement.
Under the supplemental agreement, the reclamation works that began in 1997 are required to be completed by Dec 31, 2022.
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