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Old May 17th, 2008, 06:34 PM   #241
khensthoth
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Well, the reason I say money isn't the problem is that Penang Port Sdn. Bhd. is part of the Finance Ministry. Just look at how our government (federal) spends money - sending a doctor/model into space? Any amount of money wouldn't justify it. There are more examples.

Secondly, currently the second bridge cost has ballooned to RM 4.6 Billion from RM 2.5 Billion (see from first post of this thread). I do not doubt for a bit there are inflation and rise in building material cost. However, I do not think the price could almost double. I still think the project should be tendered openly. Even RM 1 Billion to entirely revamp the Ferry system should be enough.

And yes, frankly I outright disagree with increasing the fuel subsidy when Anwar suggested it. If anything needs to be subsidised, it's public transportation. I blogged about it long ago.
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Old May 17th, 2008, 06:55 PM   #242
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Quote:
Originally Posted by khensthoth View Post
Well, the reason I say money isn't the problem is that Penang Port Sdn. Bhd. is part of the Finance Ministry. Just look at how our government (federal) spends money - sending a doctor/model into space? Any amount of money wouldn't justify it. There are more examples.

Secondly, currently the second bridge cost has ballooned to RM 4.6 Billion from RM 2.5 Billion (see from first post of this thread). I do not doubt for a bit there are inflation and rise in building material cost. However, I do not think the price could almost double. I still think the project should be tendered openly. Even RM 1 Billion to entirely revamp the Ferry system should be enough.

And yes, frankly I outright disagree with increasing the fuel subsidy when Anwar suggested it. If anything needs to be subsidised, it's public transportation. I blogged about it long ago.
My bad, if prove that Penang Port is wholy own by the gomen, we should Toot him... BTW, penang port own by gomen or UMNO? If own by UMNO then it is not the gomen, coz even we change the gomen, UMNO still own it.
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Old May 17th, 2008, 07:04 PM   #243
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It's a wholly owned subsidiary of Ministry of Finance Malaysia, losing RM 12 million a year running the ferry, but earns RM 310 Million a year (revenue), with a net profit (after taking into account the unprofitable ferry) of RM 32 Million running the entire port.
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Old May 17th, 2008, 09:12 PM   #244
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Datuk Ahmad Ibnihajar is one of the many UMNO goons in Penang. He also the chairman of Penang Port, and they are delaying this project. Even the temporary express bus terminal took months for "finishing job"
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Old May 26th, 2008, 04:37 AM   #245
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Source : http://www.thestar.com.my/news/story...030&sec=nation

Nor: Second bridge work is on track


BUTERWORTH: Construction work on the second Penang bridge is on track and it would be completed in 2011 as scheduled, said Second Finance Minister Tan Sri Nor Mohamed Yakcop.

“The project is on-going and we will hold on to the 2011 completion date,” he told newsmen after handing over house keys to tsunami victims in Kuala Muda here yesterday.

The RM4.3bil bridge, which will link Batu Maung on Penang island and Batu Kawan in Seberang Prai Selatan was scheduled to be ready on Jan 1, 2011.

However, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced on April 22 that the bridge would be delayed by nine months due to land acquisition, design and rising costs.

This prompted talk that the Federal Government was reviewing the project with an intention of scrapping it.

Chief Minister Lim Guan Eng, who was also present at the event yesterday, said that the bridge would play a vital role in attracting foreign investors to the state.

“Early this week, a Japanese company that has invested RM1.2bil here expressed its concern about the completion of the bridge.

“We hope with the help of Tan Sri (Nor Mohamed), we can give them an assurance that the project would be carried out and thus attract more foreign investors to the state.
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Old May 26th, 2008, 06:29 AM   #246
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I hope they just keep quiet( no need to appear in newspaper) and start to construct.
They always blah blah on the MSM and later nothing turn out.
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Old May 26th, 2008, 10:00 AM   #247
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'Bridge will be ready by 2011'
By : Audrey Dermawan




BUTTERWORTH: The government will stick to its 2011 deadline for the completion of the Second Penang Bridge, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.

He gave an assurance that the RM4.3 billion project, linking Batu Kawan in Seberang Perai Selatan and Batu Maung on the island, would be implemented as scheduled.

"Work is currently in progress. We will stick to the 2011 deadline," he said after presenting house keys to the 2004 tsunami victims in Kuala Muda here yesterday.

Some 400 people received the keys to their new homes.

Nor Mohamed was responding to Chief Minister Lim Guan Eng, who said at the same event that the bridge project was important to attract foreign investments, following a RM1.2 billion pledge by Japanese-based Ibiden Co Ltd last week.

He said prospective investors had asked about the bridge project and wanted an assurance it would proceed as planned.

Work on the 24km bridge, scheduled to be opened by January 2011, has been delayed by nine months.

Nor Mohamed, the Tasek Gelugor MP, said the federal government spent about RM33.68 million on the construction of the new homes and another RM9.4 million on the land.

Syarikat Perumahan Negara Bhd (SPNB), a wholly owned subsidiary of the Finance Ministry Inc, built the homes.

Each home cost RM45,000 but beneficiaries only paid a third of the amount. They also received RM1,000 each as moving expenses.

Present were Penaga assemblyman Datuk Azhar Ibrahim and SPNB chairman Datuk Azian Osman.
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Old May 27th, 2008, 10:31 AM   #248
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Oil is too cheap here !!! YES !!!

Quote:
Originally Posted by khensthoth View Post
Well, the reason I say money isn't the problem is that Penang Port Sdn. Bhd. is part of the Finance Ministry. Just look at how our government (federal) spends money - sending a doctor/model into space? Any amount of money wouldn't justify it. There are more examples.

Secondly, currently the second bridge cost has ballooned to RM 4.6 Billion from RM 2.5 Billion (see from first post of this thread). I do not doubt for a bit there are inflation and rise in building material cost. However, I do not think the price could almost double. I still think the project should be tendered openly. Even RM 1 Billion to entirely revamp the Ferry system should be enough.

And yes, frankly I outright disagree with increasing the fuel subsidy when Anwar suggested it. If anything needs to be subsidised, it's public transportation. I blogged about it long ago.
Good to hear that someone agreed that oil is too cheap here. The problem with the people in Malaysian are they want it cheap. Everytime the petrol prices increased, you will reached sms or email protesting about it. They don't understand that the longterm cost will be greater. People are still wasting petrol. In my office alone, there are 6 lady using SUV and a number of guys driving cars over 2.0 liter. They keep complaining each time there is a price increase in the petrol. They have money to purchase big car but complained about the price increase. The more people waste petrol the more money are needed to subsided it.

I agreed that the public transportation should be subsided. I don't agree with Anwar as I believed that he is just try to win more votes. He just want to be the PM that's all. I cannot image how Anwar will handle the subsidy issue when he become the PM soon. Bankrupt our country! He is the one that keep increasing the interest rate during the 1997 crisis. Luckly he was stopped. A lot of us suffered from paying the interest.

A lot of people don't under that the subsidy should be reduced. During the election time, I can hear a lot of people cursing the Government about the petrol price. Luckly for it as the DAP managed to benefit from it.

Let see how the new subsidy plan.
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Old May 27th, 2008, 12:22 PM   #249
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Going off topic here, but they (as in the current government) should have anticipated the oil price increase and should have invested in public transport and implement a roadmap to slowly do away with the subsidy. It's sad that the only long term planning our current government seems to be capable of doing is the Vision 2020.

International crude oil price is already at USD 133/ barrel. That's RM 2.72/ L of crude oil, not refined petroleum. Why not encourage the import of more fuel efficient hybrids and/or modern diesel car?
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Old May 27th, 2008, 12:32 PM   #250
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To run modern diesel car, you need better diesel quality, if not, fumes can still be seen from these cars...

I think, Petronas should agressively add more NGV stations so that it will encourage more people to use NGV and our country should increase the planting of jatropha to kickstart biodiesel business as soon as possible, because crude palm oil price these days makes it hard to commercialise palm oil based biodiesel...

Maybe our nation can consider cash subsidy as well...
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Old June 2nd, 2008, 02:09 PM   #251
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by venycal

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Old June 2nd, 2008, 02:42 PM   #252
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old photos!
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Old June 3rd, 2008, 07:32 AM   #253
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Ya lo, Venycal already posted these photo himself/herself.
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Old June 10th, 2008, 03:47 AM   #254
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Second Penang bridge on track, cost may rise
By Chong Pooi Koon Published: 2008/06/10



The government has approved an increase in construction cost for the bridge but the mechanism and quantum are still to be worked out, says UEM Builders


UEM BUILDERS Bhd, a contractor for the second Penang bridge, said the project is on track for completion in 2011 and that the government has agreed in principle on a price increase as the cost of raw materials surges.

"The project value is at RM4.3 billion now. There will be a mechanism to take into consideration price rise and a formula will be worked out," managing director Datuk Ridza Abdoh Salleh said after a shareholder meeting in Kuala Lumpur yesterday.

In general, he said, contractors should be allowed to raise project costs as the recent sharp jump in building material prices was far beyond any contractor's projection.

While the government said that it may stop certain mega projects in favour of more people-centric programmes, Ridza is positive that the project to build a second link from the mainland to Penang island will continue.



"If you read further on the Second Finance Minister's statement, he said that the Penang bridge may not be affected. We'd like to look at this positively," Ridza said.

He said the company has committed over RM200 million on the project and have spent RM50 million so far.

"As far as we are concerned, the preliminary work is going on. Some 70 per cent to 80 per cent of the land has been cleared and we have also done the advanced soil investigation," he said.

UEM Builders' current order book stands at RM4.8 billion, 35 per cent of which is from overseas. Chairman Datuk Abdul Rahim Abu Bakar said it is aiming for a balanced earnings mix to cut reliance on domestic projects.

He said the company hopes to increase its activities in India and the Middle East while it pursues new construction and infrastructure projects in Singapore, Indonesia and Papua New Guinea.
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Old June 10th, 2008, 04:08 AM   #255
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Cost may rise for second Penang bridge


KUALA LUMPUR: Construction of the second Penang bridge is on track for completion in 2011 but the price tag of RM4.3bil may be revised in view of escalating raw material prices.

UEM Builders Bhd chairman Datuk Abdul Rahim Abu Bakar said the Government had agreed in principle for an increase in project cost and discussions were still ongoing.


Datuk Abdul Rahim Abu Bakar (left) and Datuk Ridza Abdoh Salleh at a press conference after the company’s AGM

“There will be a mechanism which we will work on and a formula will be worked out,” he said after the company AGM yesterday.

Managing director Datuk Ridza Abdoh Salleh said the price was likely to be higher as raw material prices had surged but the group would try to minimise the cost.

The 22.5km project bridge linking Batu Kawan on the mainland and Batu Maung on the island is being undertaken by UEM Builders in a joint venture with China Harbour Engineering Co Ltd.

“There has been a lot of speculation that the bridge has been delayed but we are on track to open it to the public in 2011,” he said.

“People might not see the actual physical work being done on the site now but we are progressing,” he said, adding that it had completed soil investigation and was now conducting load tests.

Ridza also said the group had committed RM200mil for the project and had spent RM50mil.

Commenting on the group's performance, Abdul Rahim said it was not just eyeing tenders but also going for alliances, especially in overseas projects.

He said it had been the company's strategy to forge alliances with partners, especially developers and contractors. Its relationships included joint ventures with major property developer in India.

Under its five-year business plan, UEM Builders was targeting more overseas projects to achieve a balance between local and overseas projects, he added.

UEM Builders secured an order book of more than RM2.3bil in its financial year ended Dec 31, 2007, with about 80% from local projects and the balance from international projects.

“Our existing order book and potential projects stand at RM4.8bil, of which 35% are from overseas,” Abdul Rahim said.

He said the group was currently in discussions for projects in Papua New Guinea. It is also strengthening its presence in India and the Middle East and pursuing new construction and infrastructure projects in India, Singapore and Indonesia.

For the first quarter ended March 31, UEM Builders registered a net profit of RM22.9mil against RM17mil previously, while pre-tax profit shot up 29.4% to RM33.8mil from RM29.6mil before.
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Old June 13th, 2008, 07:49 AM   #256
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State seeks answers to rocketing cost of bridge
By ANDREA FILMER


GEORGE TOWN: The cost of the second Penang bridge has ballooned from RM2.7bil to RM4.5bil within a year and the Penang Government wants an explanation.

Chief Minister Lim Guan Eng said there was no reason for such a huge increase as the official inflation rate in 2007 was 2.3%.

“The Federal Government says there is a 2% inflation rate but they have allowed a 60% increase of about RM1.6bil for the second bridge.

“If the inflation rate is 2%, then the cost of the bridge should only rise by 2%, and if inflation is truly at 60%, then our salaries should be raised 60%,” Lim said after opening a building exhibition at the Penang Interna-tional Sports Arena.

He said the Federal Government had to explain the steep increase in costs as Penangites would eventually have to bear the expense through toll rates.

When asked about the rising cost of raw materials such as steel, Lim said the producer price inflation was set at about 5% last year.

“The rise in the price of raw materials would also have been included in the inflation rate.”

On talk of the Federal Govern-ment opening up the second Penang bridge project for tender, Lim said he supported the move as it produced the best and most competitive price.

“If the Federal Government plans to review the project and introduce open tender, the state is 100% behind the move,” he said.

The project was awarded last year to UEM World Bhd which formed a joint venture with China Harbour Engineering Co Ltd (CHEC) to build the second bridge.

Asked whether the state was planning to follow in the footsteps of Selangor by distributing free water, Lim said the state had no plans to do so as the Penang water rates were among the lowest in the country.

“When things are cheap, people tend to waste and Penang has one of the highest water consumption rates in the country,” he said, adding however, that there were no plans to raise state water rates for the next two years.
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Old June 13th, 2008, 08:02 AM   #257
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RM1.6bil masuk saya punya poket... hopefully no one reads this post... LOL
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"the said Municipality of George Town shall on the First Day of January in the Year of our Lord one thousand nine hundred and fifty seven and forever thereafter be a city and shall be called and styled the CITY OF GEORGE TOWN instead of the Municipality of George Town and shall thenceforth have all such rank, liberties, privileges and immunities as are incident to a city." - Queen Elizabeth II
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Old June 13th, 2008, 08:05 AM   #258
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Guan Eng calls for open tender


GEORGE TOWN: Chief Minister Lim Guan Eng yesterday called for an open tender for the second Penang Bridge following a proposed increase of RM1.6 billion on construction costs.

Describing the increase from RM2.7 billion to RM4.3 billion as frightening, Lim said calling for an open tender would be the ideal thing to do.

"We welcome the move if they want to review it. By calling for an open tender, they can get the best price for the bridge as well as ensure a higher quality in the construction."

At a press conference in Relau, Lim said it was unimaginable that the construction costs could balloon within one year.

"We want to know why there is a sudden increase of RM1.6 billion in the construction costs within a year."


Lim repeated his call to the federal government to get Petronas to foot the construction costs although the national oil company has explained why it cannot do so.
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Old June 13th, 2008, 09:16 AM   #259
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Penang wants seat on 2nd bridge tender board
By Regina William
Email us your feedback at fd@bizedge.com


PENANG: The Penang state government should be allowed to sit on the open tender board if the federal goverment decided to call for an open tender for the toll collection and management of the Second Penang Bridge, said Chief Minister Lim Guan Eng.

It would be a step in the right direction as Penangites should be represented in the decision-making process, he told The Edge Financial Daily .
Lim was responding to a Malaysian Insider report that the governmet has decided against awarding the concession to manage and collect toll to UEM Group Bhd.

UEM is jointly constructing the bridge, due for completion in 2011, with China Harbour Engineering Company (CHEC).

According to the report, the management and collection of toll for the second crossing would be decided through open tender, and the winning party would have to share revenue with the government. The decision was said to have been reached at a high-level meeting among Finance Ministry and Economic Planning Unit officials on Wednesday.

“The Penang state government should have a say in this. It is only fair since mostly Penangites will be the ones paying the toll.

“The people must know what are the conditions for the open tender, and it must be a proper tender process, not one where “selected” parties are awarded the tender. It must be done in a transparent manner, only then will the people be convinced of the government’s transparency in this tender process,” Lim said.

He also called on the federal government to explain why the cost of the second bridge escalated from RM2.7 billion in 2007 to RM4.3 billion this year.

Lim said an increase of RM1.6 billion in a year was “frightening”.

He said while the government maintained that last year’s inflation rate was 2.3%, he could not understand why the cost of the bridge went up by 60%.

“On one hand, the government says the inflation rate is 2%, but allows the increase of costs for the bridge by 60%. Then rightfully, inflation percentage would also be 60% and the government should increase salaries by 60% as well,” Lim added.

Saying that the high cost of building the bridge would eventually tax Penangites, Lim said the government should also reconsider an open tender for the construction of the bridge or use 5% of Petronas profits to build the bridge.

“The bridge project has to proceed but the government must explain why it is so expensive. There must be cost rationalisation, and an open tender to obtain the most competitive price would be the best way to do this,” he said.
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Old June 13th, 2008, 09:17 AM   #260
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13-06-2008: No bridge concession for UEM
By Kevin Tan & Yong Yen Nie

KUALA LUMPUR: The government has decided against awarding a concession to UEM Group Bhd to manage the Second Penang Bridge and collect toll from motorists. It will instead tender out the concession to the highest bidder.

According to an influential local news website, the move could save the government up to RM18 billion over 45 years, and increase flexibility in levying toll charges.

The government would also receive a share of the toll collection, as this would be a condition of the concession, the Malaysian Insider said on its website.

According to sources, the government has capped the cost of the bridge at RM4.3 billion but allowed the contractors a variation of price (VOP) to cater for building material price increases. The contractors of the second crossing are UEM Builders and China Harbour Engineering Co Ltd (CHEC), which are at loggerheads over the cost of the project.

The government had in November 2006 awarded UEM a contract to construct and manage the Second Penang Bridge for RM2.7 billion. However, by April this year, the cost had ballooned to some RM4.3 billion due to rising raw material prices.

It is learnt that the consortium had proposed to fix the cost at about RM4.8 billion but the government shot it down.

It is learnt that it was at this point that UEM Builders and CHEC could not come to an agreement on the apportionment of the cost. They have yet to reach a shareholders’ agreement on the deal. Two months ago, UEM had asked for a nine-month extension to work out the deal with CHEC.

As the project was a negotiated tender, it was not entitled to a VOP.

But because the price of building materials have gone up significantly, the government decided to include the clause.

As the construction costs could increase further, the government decided to scrap the concession that was originally to be handed to the UEM group.

MIMB Investment Bank head of research Pong Teng Siew described the government’s decision to call for an open tender for the management and toll collection as an “interesting development”.

He said the government had probably learnt from its previous experiences and no longer wanted to be bound by the old form of agreement, which favours the concessionaires.

“The government wants to extract better terms for the concession (with open tender) than those under negotiated tenders. This is a positive development,” he added.

Pong reasoned that the government had probably placated UEM, which was supposed to get the toll concession, by promising to absorb any hike in the cost of construction materials.

“In many countries, the contractor has to project the raw material price increases and stock up accordingly,” he said.

However, Pong said the second bridge was necessary because Penang was a major export hub and port for the northern region.

“It will ease traffic congestion, improve the transportation system and open up a new corridor of growth,” he said.

He stressed that efficient movement of goods was very important as many factories on Penang island and on the mainland operate on the “just in time” concept.

Rating Agency Malaysia chief economist Dr Yeah Kim Leng welcomed the move to tender out the Second Penang Bridge concession.

“It is a positive signal that the government is implementing the policy that it announced in 2004 that tender should be done on a competitive basis,” he said.

Yeah said competitive bidding would attract the best firms and allow the government to select the most technically capable companies to manage the bridge.

Competitive and transparent bidding could also result in cost savings, he added.
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