China-based company bags RM2.32 billion reclamation job in Penang

China-based company bags RM2.32 billion reclamation job in Penang

KUALA LUMPUR, Oct 28 — Eastern & Oriental Bhd (E&O) has awarded China Communications Construction Company (M) Sdn Bhd [CCCC(M)] a RM2.32 billion contract for the Seri Tanjung Pinang Phase 2 (STP2) proposed reclamation project in Penang.

The Letter of Award (LOA), issued through its subsidiary, Tanjung Pinang Development Sdn Bhd comprises two main parts, the lifestyle property developer said in filing to Bursa Malaysia today.

The first part involves the acceptance of the tender to reclaim Phase 2A of STP2 (Package 1) for a contract price of approximately RM1.035 billion.

Phase 2A of STP2 (384 acres or 153.6 hectares), comprising 253 acres (101.2 hectares) to be reclaimed off Penang’s northeast coast and 131 acres (52.4 hectares) on the Gurney Drive foreshore.

The second part of the LOA covers the conditional award for the proposed reclamation works for Phase 2B and Phase 2C of STP2 (Package 2) to CCCC(M) for a contract sum of approximately RM1.285 billion, subject to adjustments for exchange rate and fuel price fluctuations, and changes in cost if applicable.

Phases 2B and 2C measure approximately 507 acres (202.8 hectares) in total.

“With the reclamation contractor identified and financing arrangements soon-to-be firmed up, we look forward towards operationalising STP2 and bringing the project to fruition with mobilisation and commencement of works targeted by year-end,” E&O group managing director Datuk Seri Terry Tham Ka Hon said.

CCCC(M), a wholly-owned Malaysian subsidiary of China Communications Construction Company Limited, was incorporated to principally undertake the reclamation of STP2.

CCCC, the largest infrastructure construction and dredging company in China is listed on the Shanghai Stock Exchange and the Main Board of the Hong Kong Stock Exchange.