Hartasuma Sdn Bhd executive director Tan Sri Ravindran Menon (seated, right) and Bank Pembangunan Malaysia Bhd (BPMB) group head of coverage Gerald Goh (seated, left) signing the financing agreement for the Penang Hill Cable Car Project. Witnessing the ceremony (from left) are BPMB managing director, group corporate & investment banking Mohamed Nazri Omar, Penang Chief Minister Chow Kon Yeow and Hartasuma chairman General (R) Tan Sri Zulkiple Kassim.
GEORGE TOWN: Bank Pembangunan Malaysia Bhd (BPMB) and Hartasuma Ropeways Sdn Bhd, a wholly owned special purpose vehicle (SPV) under Hartasuma Sdn Bhd, formalised their partnership today for the new Penang Hill cable car project.
The project aims to enhance access to Penang Hill. It will expand connectivity to the Penang Hill Biosphere Reserve and boost the state's tourism sector.
The project is a key infrastructure initiative with a financing facility valued at RM367.2 million.
Hartasuma Ropeways, as the long-term concessionaire, will be responsible for developing, financing, operating and maintaining the entire cable car system.
BPMB group corporate and investment banking managing director Mohamed Nazri Omar said the financing reflects BPMB’s commitment as a development financial institution to support sustainable infrastructure that delivers long-term social and economic benefits.
"This RM367.2 million financing facility reflects our focus on supporting sustainable tourism infrastructure that generates long-term social and economic benefits.
"By enabling the Penang Hill cable car project, we are helping to strengthen Penang's position as a world-class tourism destination and create meaningful opportunities for the community," he said at the memorandum of understanding (MoU) signing ceremony here today.
BPMB group head of coverage Gerald Goh and Hartasuma executive director Tan Sri M Ravindran signed the MoU, witnessed by Penang Chief Minister Chow Kon Yeow.
Mohamed Nazri said the project marks BPMB's first blended finance initiative, combining debt financing and equity investment of up to RM30 million via subsidiary BPMB Dana Sdn Bhd.
Meanwhile, Ravindran said the project is about creating a shared legacy that future generations can connect with.
"With this milestone now achieved, the focus will shift towards execution to deliver a transformative, globally admired experience by early 2027,” he added.
Chow said the cable car project reflects Penang’s vision for sustainable tourism, balanced development and long-term planning.
"Today's signing ceremony is more than just a financing milestone. With ridership on the funicular surpassing one million this year and major transformation underway at the Astaka food court, the need for this project is urgent.
"The cable car will not replace the funicular, but complement it. It will alleviate congestion, enhance visitor experience and strengthen preparedness during peak periods," he said.
Designed to carry up to 1,400 passengers per hour in each direction, the Penang Hill cable car will be a 10-minute 2.73-kilometre journey from the Penang Botanical Gardens to the summit.
There will be three main stations, the Garden Station at the foothill, the Turn Station mid-way and the Hill Station at the top.
It will offer an alternative transport mode to the existing funicular railway.
The Penang Hill cable car project is scheduled for completion by December 2026. It will undergo a three-month trial and "a dry commissioning” phase before being opened to the public. - Bernama
