RM4b projects seen in Penang

The Penang Master Builders and Building Materials Dealers Association (PMBBMDA) expects the value of construction contracts in Penang this year to be slightly over RM4bil, which is the same as last year, but below the RM5bil forecast in 2009.
PMBBMDA president Vincent Ong said this was due to the global uncertainties and the pending gradual removal of subsidies, which would hike construction costs and lower demand.
“Nevertheless for the first quarter 2010, the value of 38 contracts from both the government and private sectors in Penang hit RM206mil, compared with about RM45mil achieved in the previous corresponding quarter, according to the Construction Industry Development Board (CIDB) report,” he told StarBiz.
“Of the 38 contracts, 10 were from the government sector. This compared with 11 contracts in the first quarter last year, of which three were government jobs.”
He said the association hoped to get more contracts from the state and federal governments for projects such as the expansion of the Penang International Airport, the second bridge and the Mengkuang Dam expansion.
“A lot of the government and private contracts that our members are handling now were approved before 2010.
“We hope this year there will be more fresh projects. If not, there may not be sufficient work to go around,” he said.
Last year, there were a total of 88 contracts, with an estimated value of RM638mil.
Meanwhile, PMBBMDA immediate past president Finn Choong said there would be over RM350mil worth of renovation jobs available for the association’s 117 members from now till March next year.
The renovation jobs are from projects such as the phase three of Setia Pearl Island and The Looc Residence, which recently obtained a certificate of fitness, Prestige Heights, the Moonlight Bay, Suria, Pavillion, Summer Place and Platino, which will be ready for renovation before year-end, and the Residence@Southbay, which will be ready in the first quarter 2011.
“The total sales value of these projects is about RM1.32bil.
“These properties will easily generate about RM350mil worth of renovation jobs, as it is normal for the owner of a unit to spend 25% to 30% of the property’s value on renovation,” Choong said.
Real Estate Housing Estate Developers’ Association Penang chairman Datuk Jerry Chan said the pending removal of subsidy sales would spur the sales of properties.
“This is natural as people want to grab properties with prices as they are today before an increase after the subsidies are removed,” he said.

Cost of rail projects may top RM50bil

The figure is inclusive of LRT extension and proposed MRT
PETALING JAYA: The total bill for rail-based public transport improvements in the Klang Valley, including the ambitious mass rapid transit (MRT), could top RM50bil, reliable sources said.
The RM50bil is inclusive of the confirmed RM7bil light rail transit (LRT) extension projects. The other RM43bil is for the recently proposed MRT project.
Sources said that of the RM43bil, RM36bil was for the construction (including tunnelling works) and design of the MRT, RM2bil for land acquisition, RM3bil for rolling stock and RM2bil for developing an underground commercial space.
Rolling stock comprises all the vehicles that move on a railway.
Gamuda Bhd and MMC Corp Bhd presented a joint MRT proposal to the Government in January.
“The proposal now is at the National Economic Action Council level and is expected to be presented to the Cabinet in two to three weeks.
“The MRT proposal network has three major lines or routes from Damansara to Serdang and Kepong to Cheras – where both lines will converge in the middle of the city centre.
“Additionally, there will also be a crucial line that will tie up all the network connectivity circling the city centre,” the sources told StarBiz.
City centre covers important areas such as Kuala Lumpur City Centre, Platinum Felda, Pasar Rakyat and Raja Chulan.
The sources said Kuala Lumpur was lagging behind in terms of rail benchmarking compared with its regional counterparts such as Singapore, Hong Kong and Japan.
“Kuala Lumpur’s rail network is only 15km per one million population, while most other cities are over 40km per one million people.
“Thus, we need another 150km to be at par with the other cities and this is where the proposed MRT system will come in.
“The proposal also indicates the MRT system would result in a three-fold increase in rail network and a five-fold increase in ridership in line with the public transport target of 40% by 2020 from 18% in 2009,” the sources said.
This will translate to two million trips per day in 2020 using the rail network from 400,000 trips per day currently.
During the 10th Malaysia Plan period, the Government will improve the liveability of cities and has identified major initiatives under the national key result areas, particularly to address crime and improve public transportation in urban areas.
The Greater KL has been identified as a new key economic area and initiatives are under way, including the proposed MRT system, to transform it into a leading global city.

Sunway explores RM250m JV development in Colombo

SUNWAY HOLDINGS BHD is planning a joint venture (JV) with Dasa Tourist Complex (Private) Ltd to develop a 34-storey building on a parcel of freehold land in Colombo city, Sri Lanka, with an estimated gross development value of US$78 million (RM254.8 million).In a statement on Thursday, June 17, Sunway said it had on the same day entered into a memorandum of understanding with Dasa Tourist to explore the possibility of forming the JV for the proposed development. The development will comprise 71 commercial units and 176 residential units.It said it would be located in the premium mixed-use zone of Bambalapitiya in Colombo 4 and had the potential to generate a total sellable area of 400,000 square feet.Sunway said Dasa Tourist, a company incorporated in Sri Lanka, was in the manufacturing of textile and garment.Under the MoU, Sunway shall undertake feasibility studies and market research to ascertain the viability of the proposed development within two months."The overseas market is a major source of revenue for Sunway. The MoU will give Sunway the opportunity to explore the feasibility of expanding its property development business in Sri Lanka by developing a parcel of land in an attractive location," it said.Citing the IMF World Economic Outlook April 2010, it said Sri Lanka was now enjoying its "peace dividend" with the economy expected to grow by 5.5% and 6.5% in 2010 and 2011 respectively, following the defeat of the Liberation Tigers of Tamil Eelam in May 2009.

IJM wins RM350mil second Penang bridge job

IJM Corp Bhd unit IJM Construction Sdn Bhd has secured a RM349.98mil job from Jambatan Kedua Sdn Bhd (JKSB) for the construction of the second Penang bridge.
The contract includes Package 3B: Batu Kawan Expressway which involves the construction of a 5.7km dual two-lane carriageway with a cloverleaf interchange and four bridges.
IJM told Bursa Malaysia that the construction period was 31 months from the date of site possession on June 28.
JKSB is a unit of the Minister of Finance, Inc.
The estimated cost of RM4.5bil may be revised downward due to competitive pricing, according to a recent news report.
The 24km second bridge will link Batu Kawan in Seberang Perai to Batu Maung on Penang island.