PETALING JAYA: Benalec Holdings Bhd, which has requested for its stock to be suspended pending an announcement, is close to securing a land reclamation project that will cover about 5,000 acres in Tanjung Piai in the southwestern tip of Johor, sources said.
The sources added that the contract was being awarded by the Johor government to Spektrum Kukuh Sdn Bhd and Spektrum Budi Sdn Bhd, both of which are 70:30 joint ventures between Benalec and certain individuals.
The blocks of land were divided into two parcels one in the southwest of Tanjung Piai measuring 3,485 acres while the other is in the southeast measuring 1,700 acres, the sources said, adding that Benalec was likely to announce the deal this week.
According to sources, Benalec will undertake a private placement soon to raise funds for the project. Benalec declined to comment when contacted by StarBiz.
The source said the parcel at the southwest of Tanjung Piai was some 17km or 9 nautical miles from the major petrochemical complex on Jurong Island in Singapore. That part of Tanjung Piai is also suitable to be a deepwater petroleum terminal facility, similar to what Dialog Group Bhd is developing in Pengerang, Johor.
“The anchorage in that area is deep and shielded from monsoon,” said the source.
Meanwhile, the land to be reclaimed in the southeast of Tanjung Piai may include a container port to serve Petroliam Nasional Bhd's planned RM60bil refinery and petrochemical integrated development complex in Pengerang.
Sources also said it was likely that Singapore's Jurong International, the master planner for Jurong petrochemical complex, would be appointed the master planner for the reclaimed land in Tanjung Piai.
Benalec is an integrated maritime construction company. Its main activities are land reclamation works, dredging and other services like marine structure and breakwater construction.
Benalec is working on several reclamation projects like Arab City in Malacca, Glenmarie Cove in Port Klang and dredging for the Kapar power station. Its contracts in hand are valued at about RM800mil.
Payment for Benalec's services comes in two forms cash or payment in kind where Benalec is granted some portion of the reclaimed land. The company is currently the largest “land manufacturer” in Malacca with an entitlement of some 1,360 acres. The bulk of this was secured in the form of payment-in-kind from Oriental Holdings Bhd for reclamation works done.
As at June, Benalec has reclaimed and sold 330 acres in Malacca. Out of the outstanding 1,030 acres, 270 acres have been reclaimed and already come with land titles.
AmResearch said in a report that the balance 760 acres would be reclaimed over the next four to five years. A major portion will consist of a sizeable reclamation contract in Klebang where works had commenced since March.
Recently, Benalec won a RM36.6mil contract to reclaim 60 acres on the coast of Pulau Konet, Alor Gajah, Malacca.