KUALA LUMPUR (June 22): The Penang South Island (PSI) reclamation project, which has been scaled down from three islands to one following a request from the prime minister, will finally kick off with Gamuda Bhd starting Phase 1 of the reclamation works worth RM3.717 billion on July 1.
This involves about 1,260 acres of the total 2,300 acres to be reclaimed for the island known as Island A, which the project developer Silicon Island Development Sdn Bhd — the 70:30 joint venture between Gamuda and the Penang state government — had previously estimated would cost RM6 billion in total to reclaim, with the cost of common infrastructure expected to be RM2.5 billion.
Under the project development agreement executed in March between the Penang state government and Silicon Island, which is undertaking the development entirely through the deployment of private sector capital, Silicon Island will award the full scope of Island A's reclamation — comprising both reclamation and common infrastructure works and the building of a highway — to Gamuda's wholly owned SRS TC Sdn Bhd as the turnkey contractor.
In a filing Thursday (June 22), Gamuda said Phase 1 of the reclamation works has now been awarded to SRS TC Sdn Bhd, who has in turn awarded it to Gamuda Engineering Sdn Bhd, another Gamuda wholly owned unit.
The job is expected to be completed by June 30, 2030.
On May 11 this year, Penang Chief Minister Chow Kon Yeow said the state government would reduce the size of the three-island project from the initial 4,500 acres to just one island measuring 2,300 acres, following a request made by Prime Minister Datuk Seri Anwar Ibrahim to do so.
He said then that the downsize was a 49% reduction from the original approved plan, and that only development works for Island A — Silicon Island — would proceed, while the second and third islands, B and C, would be discontinued.
In return, Anwar announced that additional federal funds would be channelled to help the state government expedite the construction of the George Town-Bayan Lepas light rail transit.
On Thursday, Gamuda’s share price closed 0.71% higher at RM4.25, valuing the group at RM11.31 billion. Year-to-date, the counter has appreciated by 12.43% from RM3.78 on Jan 3.