ADVERTISEMENT

E&O secures RM1.08bil banking facilities for STP2 reclamation


An artist's impression of the Seri Tanjung Pinang Phase Two project showing two bridges connecting Straits Quay and Gurney Drive to the reclaimed island.

An artist's impression of the Seri Tanjung Pinang Phase Two project showing two bridges connecting Straits Quay and Gurney Drive to the reclaimed island.

KUALA LUMPUR: Eastern & Oriental Bhd’s (E&O) subsidiary, Tanjung Pinang Development Sdn Bhd (TPD), has secured up to RM1.084bil in syndicated banking facilities for its Seri Tanjung Pinang Phase 2 (STP2) reclamation project.

TPD has signed a facility agreement with Maybank Islamic Bank Bhd and RHB Islamic Bank Bhd in relation to the facilities, E&O said in a statement.

The syndicated banking facilities will be used to part-finance the reclamation and infrastructure works of the STP2 project in Penang.

E&O managing director Datuk Seri Terry Tham Ka Hon said with the funding in place for STP2, one of the key aspects to operationalise the project had been addressed.

He said that all relevant requirements and authorities’ approvals for STP2 were in hand. These include the Federal Department of Environment’s approval of the project’s detailed environmental impact assessment study.

E&O said the concession agreement for Seri Tanjung Pinang dated Oct 4, 1990 provided for the reclamation of 980 acres at Tanjung Tokong off the northeast coast of Penang island.

This would be reclaimed in two phases; 240 acres in the first phase and 740 acres in the second phase.

However, in 1999, E&O was required to surrender 20 acres of the 240 acres reclaimed in STP1 to the Penang state government for the proposed Coastal Road Corridor.

In return, 20 acres would be replaced in STP2, bringing the total reclamation of STP2 from 740 acres to 760 acres.

E&O shares rose by 3 sen to close at RM1.53 on Monday.

   

ADVERTISEMENT