Gamuda: Penang govt has accepted proposed terms on Island A project

Published by Malay Mail• 25/03/2021• 07:51pm

KUALA LUMPUR, March 25 — The Penang state government (PSG) has accepted the terms on the development of the Island A project proposed by Gamuda Bhd’s 60 per cent-owned subsidiary, SRS Consortium Sdn Bhd (SRS).

SRS was appointed as the project delivery partner (PDP) to manage and deliver Penang’s Transportation Master Plan through a Master Agreement with the PSG, signed on July 1, 2020.

“Following months of negotiation, the PSG and SRS have come to an agreement, whereby SRS will undertake the development of Island A through the deployment of private sector capital without any recourse to PSG,” Gamuda said in a filing with Bursa Malaysia today.

It added that the development of Island A shall be implemented via a project development model in a joint venture with the PSG, and a project development company shall be formed between SRS and a PSG-appointed entity.

“As the funding of these components is to be borne entirely by the project developer, the delivery of these components shall no longer be carried out under the project delivery partner model under the Master Agreement.

“A supplemental agreement to the Master Agreement will be executed to effect the change, while all other components comprised in the Master Agreement shall remain under the PDP model,” it added. — Bernama