Shareholder agreement on PORR project ready

PENANG: Peninsular Metro-Works Sdn Bhd (PMW), the concessionaire for the Penang Outer Ring Road (PORR), has finalised its shareholders agreement which will be submitted to the Economic Planning Unit (EPU) after July 20.
Managing director Datuk Abdul Rahim Saibu said the finalised agreement structure, however, did not include Malaysian Resources Corp Bhd (MRCB) as widely believed.
The shareholders in the finalised structure are investment holding company Nadi Senandung Sdn Bhd, with a 55% stake; and Kumpulan Perhubungan Sdn Bhd, a unit of Yayasan Bumiputera Pulau Pinang Bhd, with 30% interest, while Lingkaran Tanjung Sdn Bhd and Melati Jebat Sdn Bhd would hold 8% and 7% respectively.
Rahim said the company saw no reason to delay the signing of the concession agreement.
“The concession agreement should be signed before the end of August,” he told StarBiz.
Rahim said the entire project would be fully financed by and had the full support of Macquarie Bank, Bank Pembangunan and Affin Bank.
Gurney Drive as it is today. The landscape will change after reclamation of 500 acres in the area under the PORR project.“PMW plans to call for open tenders to select competent Malaysian contractors as well as to ensure the support of the local industry in Penang,” he added.
PMW, with a paid-up capital of RM5mil, was incorporated in 1995 with the specific objective of building and operating the PORR project for 34 years.
The 17.2km two-lane dual expressway, is designed for speeds of up to 80km an hour. Some 11km of the expressway will be elevated to accommodate an 8km double-decked road, the first of its kind in Malaysia.
The expressway, which is expected to have four toll plazas and eight interchanges, will stretch from Tanjung Bungah to Penang Bridge on the island.
The project is expected to drastically change the landscape of Penang and create significant economic spillover effects for the state.
The project will take about four years to complete. The planning and designing, and working out financial aspects would take at least a year.
The construction and development costs are estimated to be about RM1.2bil. and
the project also involves reclaiming up to 500 acres at Gurney Drive