Penang to auction 6-acre freehold land to fund Air Itam road project

 

Penang Infrastructure Committee chairman Zairil Khir Johari. NSTP File pic

GEORGE TOWN: Penang will auction a strategic six-acre freehold plot to help fund the remaining eight per cent of the Ayer Itam-Lebuhraya Tun Dr Lim Chong Eu (Ayer Itam-LCE) bypass project.

State Infrastructure and Transport Committee chairman Zairil Khir Johari said the project had achieved 92.46 per cent physical progress as of Aug 31, while financial progress stood at 81.69 per cent.

He said the RM850 million project was being financed through a land-swap mechanism, under which land was transferred based on work completed by the contractor, Consortium Zenith Construction Sdn Bhd (CZC).

"Although physical progress has reached 92.46 per cent, financial progress is only 81.69 per cent.

"CZC has claimed land worth RM695.977 million so far, of which 11.6183 acres worth RM427.657 million have been transferred. The remaining value of land claimed but yet to be transferred is RM225.768 million," he said in a statement today.

Zairil said CZC had sought the state government's assistance to monetise the land through a sale to generate cash flow and ensure the project could be completed by April 2027.

The six-acre prime freehold plot, identified as P.T. 858 (Plot 7A), Section 2, Bandar Tanjung Pinang, in the northeast district, will be offered through a public auction on Oct 7 at 11am.

Located next to Gurney Bay and Andaman Island, the plot has a reserve price of RM313.632 million, equivalent to RM1,200 per sq ft.

"Proceeds from the sale will be shared between the Penang government and CZC," Zairil said.

The auction will be held at Level 51, Komtar. Prospective bidders are required to submit a bank draft deposit of RM3.13632 million, equivalent to one per cent of the reserve price, payable to the land administrator of the district before 11am on the auction day.

Further information on the auction's terms and conditions, participation procedures and property details can be obtained from the appointed auction agent, One Asia Property Consultants (PG) Sdn Bhd, at 25-F Gottlieb Road, Penang, or by calling 04-227 7222.

Participation is subject to the Proclamation of Sale and the terms and conditions set by the Penang state authorities.

The 6km, toll-free dual-carriageway is intended to provide an alternative route and ease traffic congestion in George Town.

The project, which began construction in February 2021, comprises elevated viaducts, ground-level roads and other structured sections.

Its completion target has been extended to April 12, 2027, following delays linked to financing and site logistics. -NST