GEORGE TOWN (Nov 2): The Penang government has received no fresh request from Consortium Zenith Construction Sdn Bhd (CZC) to reauction a six-acre (2.42-hectare) plot of land near Gurney Drive after an earlier auction failed to attract bidders.
Chief Minister Chow Kon Yeow said the initial auction in September was conducted at CZC's request to raise funds for the remaining construction work on the Package 2 Highway Project, a bypass linking Bandar Baru Ayer Itam (Farlim) to the Tun Dr Lim Chong Eu Expressway.
“To date, the state government has not received any fresh request from CZC to facilitate a reauction, as the company is no longer facing cash flow constraints and can complete the remaining works, which are now more than 95% completed,” he told the Penang State Legislative Assembly on Monday.
Chow was replying to Lim Guan Eng (Pakatan Harapan-Air Putih), who asked about the unsuccessful land sale through an open tender and whether another auction would be held.
The chief minister said the previous public auction had been widely advertised in newspapers, on the official websites of the Penang Land and Mines Office and the Northeast District and Land Office (PDTTL), and through the Real Estate and Housing Developers’ Association Malaysia (Rehda) on Sept 7.
However, Chow said participation depended on the interest and readiness of qualified bidders, and the land administrator could not guarantee bids despite extensive publicity.
He said any further action involving the land would be subject to a decision by the state authority, with PDTTL responsible for implementing the necessary follow-up measures.
The land, located along Jalan Peter Paul Dason near Gurney Drive, had been offered at a reserve price of RM313.632 million, equivalent to RM1,200 per square foot.
Under the land-swap financing arrangement, proceeds from the auction were expected to cover the value of land owed to CZC for work already completed, with any surplus to be shared between the state government and the company according to agreed terms.
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