PENANG's SECOND LINK Update!

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Firm to build longest bridge
By Lu Haoting (China Daily)
Updated: 2007-07-14 06:51


China Harbor Engineering Co Ltd (CHEC), the country's top port builder and a leading bridge construction firm, agreed on Friday to build a bridge linking the mainland of Malaysia with the country's northern Penang state.

When completed in January 2011, the $1.1 billion bridge will become Southeast Asia's longest.

The Export-Import Bank of China, a government-owned policy bank, will provide an $800 million loan, the largest amount provided by China to finance a single project in a foreign country.

The loan will carry a 3 percent interest rate over 20 years. Commercial banks usually have a shorter repayment period and higher interest rates.

The bridge is also CHEC's largest overseas project in terms of contract value.

"The bridge will become a symbol of friendship between China and Malaysia. It is also a great opportunity for CHEC," Sun Ziyu, CHEC president, told China Daily on the sidelines of Friday's contract and loan agreement signing ceremony.

Design and construction of the bridge is being undertaken by a consortium in which CHEC holds a 51 percent stake. UEM Construction, a unit of Malaysia's leading construction conglomerate UEM Group, has the remaining shares.

CHEC will design and build the main part of the bridge that will cross the South Channel, between Penang Island and the Malaysian mainland. UEM will be responsible for the bridge approach.

The 22.5-km bridge will be the second to link Penang Island with the Malaysian mainland after the existing Penang Bridge, which is being expanded to accommodate increasing traffic.

The new bridge is part of the Ninth Malaysian Plan, a comprehensive government blueprint to allocate the national budget from 2006 to 2010.

The most striking feature of the planned bridge is two sightseeing platforms at its central span. The platforms will enable tourists to enjoy a panoramic view of Penang and the mainland.

"Southeast Asia has been a major overseas market of CHEC due to its huge demand for infrastructure building. With the closer relationship between China and ASEAN countries, we hope to see more opportunities in the future," Sun said.

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2nd Penang bridge pile testing works to start soon
By Marina Emmanuel
October 22 2007

UEM Construction's main contractor China Harbour Engineering, which has given its word to deliver the 22.5km bridge by the end of 2010, has almost completed survey and soil investigations

CHINA Harbour Engineering Company Ltd (CHEC) - the main contractor of the second Penang bridge - is set to begin pile testing works for the iconic bridge on November 5.

The Beijing-based company, which has almost completed survey and soil investigations at the project site in Penang, is looking at trial pile testing especially at the main span of the new bridge, CHEC president Sun Ziyu said.

"This project is deemed high-priority for us owing to the pressure exerted on CHEC by the China government to execute it on time and we have given our word that we will deliver by the end of 2010.

"We are also mindful of the traffic congestion caused on the first Penang bridge currently and the urgency in completing the second crossing since it is one of the projects under the Northern Corridor Economic Region," he told the Business Times.

Sun was in Penang over the weekend to personally inspect progress being made on the project. Also present was CHEC's second Penang bridge project management director Chang Yunbo.

The 22.5km second Penang bridge (of which 17km will be on water) linking Penang island and Seberang Prai after the existing Penang Bridge, is the largest overseas project for CHEC in terms of value.

Upon completion by 2011, the bridge, which will comprise 294 piers and 9,364 sections, is set to be the longest bridge in South-East Asia.

The state-owned CHEC which is a Fortune 500 company, has a global footprint via 15 companies and 20 overseas resident offices it operates.

The company is a unit of China Communications Construction Co Ltd, China's top port builder.

China is providing Malaysia with a US$800 million (RM2.7 billion) loan, the largest amount given by China for a single project in a foreign country.

UEM Construction Sdn Bhd has named CHEC as its main contractor for the bridge project and a consortium, named CHEC-UEMC, has been formed for this joint venture where CHEC holds a 51 per cent stake and the remaining 49 per cent is held by UEM.

CHEC has already set up a site office in Penang where a total of 120 people, 45 of whom are Malaysian, have been employed for the bridge project.

Sun said CHEC had spent US$10 million (RM34 million) on building the bridge since mid-2005.

"We are currently identifying local suppliers for materials to use for the marine bridge, and are comparing the local unit price for these materials with China imports," he added.

Chang said the conceptual design and design brief for the marine bridge portion had been completed.

"We have submitted these to UEM for approval by the Malaysian government," he added.

[Irwin]

Traffic Congestion on the Current Bridge

[hetfield85]

http://www.nst.com.my/Current_News/N...cle/index_html
2007/10/30

Second Penang Bridge to now cost over RM3b
By : Phuah Ken Lin




GEORGE TOWN: Chief Minister Tan Sri Dr Koh Tsu Koon said the second Penang Bridge is expected to cost more than the original estimate of RM3 billion.




This, he said, was due to the rising cost of building materials.

Koh said he would have a meeting with UEM Builders Bhd and the main contractor, China Harbour Engineering Co Ltd (CHEC), today to discuss the issue.

“I will discuss with UEM and CHEC on the revised cost structure and technical aspects of the new bridge.

“Rising cost of building materials such as cement, iron bars and earth has rendered the current RM3 billion estimates unrealistic,” said Koh after speaking at the Rosettanet Global Community and Partner conference yesterday.

Koh said the RM3 billion figure was based on estimates that was done years ago and was thus not reflective of the current cost of building materials.

He was commenting on a statement by UEM managing director Datuk Ridza Abdoh Salleh on the projected increase in construction cost.

Ridza said UEM would work within the new budget.

“At this moment, UEM and CHEC have yet to finalise the revised cost.”

Koh said as the bridge was a mammoth project, it would take some time for the developers to work out a new figure.

CHEC is set to begin pile testing for the 22.5km bridge, which will link Batu Kawan in Seberang Perai and Batu Maung on the island, this month.

The bridge is expected to ready by January 2011.

UEM subsidiary, UEM Construction Sdn Bhd, has formed a consortium known as CHEC-UEMC to build the bridge, with CHEC holding a 51 per cent stake and UEM the remaining stake.

The bridge will be the longest in Southeast Asia.

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UEM Dismisses Speculation Over Second Penang Bridge
November 06, 2007 01:17 AM


PENANG, Nov 5 (Bernama) -- UEM Builders Bhd tonight dismissed speculation over the purported absence of construction on the second Penang bridge, saying that any physical structure will only be visible in March next year.

Its managing director, Datuk Ridza Abdoh Salleh, said the absence of any physical structure now did not mean that no work was going on.

The physical structure could be seen after work on the casting and moulding was completed in March next year, he told reporters at an Aidilfitri reception for the media here.

He said the company was now engaged in preliminary work on the bridge, such as clearing 68 hectares for the alignment of the bridge, conducting soil tests and marine soil tests and installing gantries.

All work began on the day that Prime Minister Datuk Seri Abdullah Ahmad Badawi officiated the ground-breaking ceremony for the 24-km bridge at the end of last year, and work was being done in fast track mode, he said.

Ridza said 17 kilometres of the bridge would be over water and it was expected to be opened for use in January 2011.

He said the cost of construction was over RM3 billion but it could go up depending on any rise in the cost of construction material in the world market.

The second bridge will link Batu Kawan in Seberang Perai Selatan to Batu Maung on the island and is to feature pillars able to withstand earthquakes measuring up to seven on the Richter scale.

-- BERNAMA

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Dredging for new bridge to start soon
Tuesday November 6, 2007
By CHRISTINA CHIN


PENANG: Dredging work for the Second Penang Bridge will com-mence by the end of this month, said UEM Builders managing director Datuk Ridza Abdoh Salleh.

He said the company was currently focusing on building its casting yard in Batu Kawan.

“Construction work on the project started the day Prime Minister Datuk Seri Abdullah Ahmad Badawi attended the groundbreaking ceremony in November last year.

“You may not see actual physical work being done on the site now but we are working hard.

“The fabrication equipment is be-ing manufactured in Shah Alam, Ipoh and Italy. This is crucial because without a casting yard and the ne-cessary equipment, you cannot build the bridge,” he said, adding that work on the second link was “ahead of schedule”.

However, he said the design for the bridge would only be finalised by 2009.

“Designing is an ongoing process. We are doing several things at one go. This is the fast-track system,” he told reporters at a Hari Raya dinner and media briefing session at Tra-ders Hotel last night.

He also said the company had made allocations for the rising cost of building materials.

Asked to comment on who would head the steering committee for the project, Ridza said he had not been officially informed.

“But from what I understand, (former Public Works Department director-general) Tan Sri Zaini Omar will be heading it.

“The committee was set up by the government to expedite the project. This is a normal procedure,” he said.

[nazrey]

UEM Builders to secure more projects
23 Nov 2007 3:08 PM




AFFIN Investment Bank Research expects UEM Builders Bhd to secure more infrastructure projects which will be implemented in the various economic corridors from 2008.

“UEM Builders’ order book remains strong at RM3.2 billion, and we do expect stronger construction bookings, especially from the Penang Second Bridge, in 2008 and 2009. The turnaround in Costain Group plc is also stronger than expected,” it said.

Affin Research maintained its buy call and target price of RM2.08 for the counter. The target price was based on 13 times calendar year 2008 (CY08) earnings per share (EPS) and since the EPS revision is minimal, the target price of RM2.08 (which now implies a CY08 PE of 12.4 times) is maintained.

UEM Builders posted net profit of RM17.99 million for the third quarter ended Sept 30, 2007 (3Q07) compared with a net loss of RM38.42 million on-year. Revenue rose to RM652.75 million from RM489.55 million.

For the nine-month period, net profit jumped to RM51.23 million from RM21.92 million while revenue also surged to RM2.02 billion from RM1.25 billion. Earnings per share was 5.32 sen from 2.27 sen.

The research house said the 3Q net profit was 204.9% higher as Costain Group (now 20.6% owned versus 35.1% previously) turned around to contribute a profit of RM13.9 million against a loss of RM46.5 million in 3QFY06.

On-quarter, profit before tax was flat in spite of the turnaround in Costain due to minimal contribution from engineering & construction (E&C) in spite of billings from local jobs and lower contribution from infrastructure maintenance.

The local jobs include expanding the third lane for the North-South Expressway, widening of the Penang Bridge and construction of the Johor State Administrative Centre.

“At the nine-month stage, net profit recorded was still only 40% of our full-year forecast of RM126.8 million and 33% below consensus of RM154.9 million.

“We believe the shortfall is attributable to the delay in the start of the Penang Second Bridge project and/or initial costs incurred in new projects (such as the Penang Second Bridge) and delay in profit bookings. But this needs to be clarified with the management,” it said.

Affin Research said as contract claims on overseas contracts were still pending and management expected progress of some construction contract to be stretched into 2008, it was revising its FY07 forecast 21% lower. However, FY08 and FY09 forecasts were tweaked higher to reflect the turnaround in Costain.

“We believe the shortfall in profit year-to-date is principally a timing issue. UEM Builders’ order book remains strong and we expect stronger construction bookings,” it said.

[nazrey]

Work on second Penang Bridge begins
KUALA LUMPUR, MON:

Work on the 24-kilometre second Penang bridge has begun with the completion of much of the preparatory work.

China Harbour Engineering Company (CHEC) said that soil investigation work which started in August would be finished this month while topography surveys were completed in September.

The underwater survey was completed a month later, CHEC said in a statement here today.

CHEM said that test piling began last month and that it has already completed three clusters of seven piles each.

The second bridge, which would help reduce the traffic jam, would be the longest bridge in Southeast Asia when completed by January 2011.

CHEM and UEM are jointly constructing the bridge that would link Batu Kawan in Seberang Perai to Batu Maung on the island.

UEM Construction Sdn Bhd has formed a consortium to build the bridge, with CHEC holding 51 percent equity and UEM the remaining stake.

[nazrey]

Work on Penang Second Bridge begins
Tuesday December 11, 2007
TheStar

PETALING JAYA: Actual construction work on the RM3bil Penang Second Bridge has started after completion of initial works.

China Harbour Engineering Company (CHEC) said in a statement that soil investigation work would end this month while topography surveys and underwater works were completed in September and October respectively.

In a statement, the company said test piling began last month and to date, it had completed three clusters of seven piles each.

CHEC and a subsidiary of United Engineers Malaysia (UEM), UEM Construction Sdn Bhd, is jointly constructing the 24km bridge between Batu Kawan on the mainland Penang and Batu Maung on the island.

Once finished, the Second Bridge would help decrease and ease traffic clogging on the Penang Bridge.

Quoting a spokesman, the statement said CHEC had brought in China’s premier engineering surveyors, CCCC Third Harbor Consultants Co Ltd, to handle the project.

“The company has an excellent track record and has worked on bridges such as the world’s second longest bridge, Donghai Bridge, in China,” the spokesman said.

The second bridge would be the longest in South-East Asia when completed in January 2011.

[nazrey]

2nd Penang Bridge Ground Breaking





2006 © UEM Group

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Work on second Penang bridge to resume soon
By Audrey Dermawan, Marina Emmanuel and Sharen Kaur Published: 2008/01/19

Penang Chief Minister says the the bridge will be completed on schedule and open to the public by 2011

WORK on the second Penang bridge has not been stopped, but has been delayed for a few months to address issues regarding fishermen in the area, Penang Chief Minister Tan Sri Koh Tsu Koon said yesterday.

"We are taking necessary measures to address the problem. I want to stress that the work has not been stopped, but only been delayed for a few months," he said.

Koh said despite the delay, he believes the bridge will be completed on schedule and open to the public by 2011.

Meanwhile, head of the task force for fast-track implementation of the second crossing project, Tan Sri Zaini Omar, said work should start to pick up again when certain equipment for dredging arrives before the end of the month.

"We were not able to get the equipment to fully comply with the requirements of the Department of Environment," Zaini told Business Times.

Zaini, who is the former director-general in the Works Ministry, said the project is expected to be completed on schedule by early 2011.

"We should be able to catch up with the work and remain on schedule," he said.

Zaini said the impact of the project on the livelihood of fishermen were being looked into.

Meanwhile, a spokesperson for UEM Builders Bhd said the delay does not impact the entire bridge project as only the dredging work on the sea area has been stopped.

The land portion and other related works are still ongoing, the spokesperson said via email.

"With the cooperation of all parties and barring any unforeseen circumstances, the sea (dredging works) will commence before the end of the month," the spokesperson said.

Port builder and bridge construction firm China Harbour Engineering Co Ltd is the main contractor for the iconic 24km bridge project, which will link Batu Maung on the island with Batu Kawan in Seberang Prai.

Upon completion, the bridge, which will comprise 294 piers and 9,364 sections, will be the longest in Southeast Asia.

[nazrey]

Second Penang Bridge to be completed on schedule
by Regina William, 24 Jan 2008 11:42 AM

PENANG: The Second Penang Bridge would be completed on schedule by end-2010 and any differences involving the conceptual design would be resolved, hopefully by tomorrow, said the head of special task force for project, Tan Sri Zaini Omar.

Downplaying the differences of opinion between United Engineers Malaysia Bhd (UEM) and China Harbour Engineering Corporation (CHEC), which were awarded the project, he said yesterday he would be chairing the meeting tomorrow to finalise the design.

Zaini said even if the difference could not be resolved by tomorrow, the rest of the preliminary works including dredging and piling would continue.

“Even after we complete dredging, we can carry on with the piling while waiting for the detailed design of the bridge,” he said at a media briefing, adding they would go ahead with actual work on the bridge after the Chinese New Year.

On the differences of opinion, he said: “Since there is more than one designer, we have many opinions. There is only a slight difference in opinion. I believe that in the end, we will all go for best and practical situation and design.”

There were recent press reports about the dispute over the design of the bridge and could possibly delay the project.

However, Zaini said to date, the preliminary works were on schedule and there were no delays.

He said out of the 17km of the bridge which was above the sea, 5km was over deep waters and the rest over shallow waters. To date, over 10 million cubic metres of mud had been dredged.

On the stop-work order issued by the Department of Environment (DOE) last month due to the dredging, Zaini said the department gave the project conditional approval and allowed the mud to be dumped off Pulau Kendi. He added the DOE was monitoring the project.

On the legal suit filed by DCX Technologies two weeks ago, claiming the project had been hijacked by China Road and Bridge Corp, a unit of the China Communications Construction Group (CCCG) which also owns CHEC, Zaini said it would not affect the project.

“I am not aware of the suit, but if it is a dispute over the contract, it will not affect the progress of the project,” he added.

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Bridge work halted to tackle fishermen's woes
NST Online 2008/01/18



Technical issues linke Piling work on the have forced a halt to work
to stop on the second Penang Bridge is halted temporarily.

KEPALA BATAS: Work on the second Penang bridge project was recently halted to address problems affecting the livelihood of fishermen in the area.

Chief Minister Tan Sri Dr Koh Tsu Koon yesterday said the piling works for the second crossing had affected the environment and subsequently, marine life.

He said although the state wished to expedite its construction, many issues, including technical ones, had surfaced.

"Work on the bridge had to be temporarily stopped because we had to settle the fishermen's problems," he said at the launch of the state-level integrity month at Dewan Millennium.

Koh said the move to halt piling works reflected the state administration's concern for issues affecting the people even if it was at the expense of slowing down development.

A steering committee, set up by the federal government to fast-track the construction of the second crossing from Penang island to Seberang Prai, was looking into the issue.

The high-powered committee, headed by former Works Ministry director-general Tan Sri Zaini Omar and chaired by Koh at the state level, also includes three state executive councillors, representatives of concessionaire company UEM Builders Bhd and the project's main contractor, China Harbour Engineering Co Ltd.

Koh said the committee met on Tuesday to discuss the issue and find ways to address the loss of income by the fishermen and prawn breeders.

[nazrey]

Fact Sheet:

- Overall length - 24 km
- Length over water - 17 km
- Main span : Length - 250 meters
- Height clearance (above water) – 30 meters
- Number of vehicle lanes – 2 + 1 for motorcycles (each direction)
- Targeted date to be opened to the public – January 2011
- Overall cost – Around RM3 billion
- Average time taken to drive from Batu Kawan to Batu Maung – 20 mins
- Proposed speed limit on bridge – 80 km/hour
- Percentage of local contents to be used - 60%
- Main features - Two viewing platforms to be built half-way along the bridge (above sea level)
- UEM Group Berhad was awarded the project, to be the concessionaire for Penang Second Crossing Bridge
- A consortium called UEMC-CHEC was formed to be the EPC (Engineering, Procurement & Construction) contractor for the project, with 51 percent stake being CHEC and UEMC having remaining 49 percent
- China Exim Bank will provide US$800 million loan for this project

[nazrey]

Cepco eyeing RM200mil job for Penang Bridge

KUALA LUMPUR: Concrete Engineering Products Bhd (Cepco) is confident of securing a contract worth about RM200mil to supply marine piles for the second Penang bridge project.

Cepco’s marine piles were successfully tested for the bridge project in July 2007, managing director Leong Kway Wah said.

“However, there is no indication yet. We have yet to hear if we are going to get the contract,” he said after the company AGM yesterday.

He added that Cepco was also eyeing jobs from projects to be rolled out under the Ninth Malaysia Plan and the various economic development corridors.

Leong was positive on the prospects for Cepco as the company was one of two players in the spun concrete piles market.

Cepco currently has an order book of about RM80mil that would keep the company busy for five to six months.

On new export markets, Leong said the company was in talks with parties in Canada.

“We have received enquiries from Canada on supplying materials for the construction of an indoor stadium for the 2010 Winter Olympics,” he said.

He said the award of the contract would be confirmed by the end of this month.

At present, the company already exports concrete piles to Iran.

“Currently, we have an existing order to supply marine piles worth RM15mil for an ongoing project in Iran,” he said.

Leong said revenue contribution from exports contributed 15% to total group revenue.

“We would like to increase our export market share but have to consider the problem of logistics especially with the increase in the price of fuel, which has impacted transportation cost,” he said.

On the rising price of raw materials like steel and cement, Leong said that this would affect the company’s bottom line as the company was not able to transfer the cost to customers fast enough.

He said Cepco’s strategy would be to anticipate the higher prices and factor them into its prices as well as to source for cheaper raw materials from external suppliers.

[nazrey]

Government to work with Penang on Second Link
Friday April 4, 2008
By DEVID RAJAH
TheStar

PUTRAJAYA: The Federal Government has agreed to cooperate with the new Opposition-led Penang Government to complete the Second Link or second Penang Bridge project, Penang Chief Minister Lim Guan Eng said.

Lim, who met Prime Minister Datuk Seri Abdullah Ahmad Badawi here yesterday, said Abdullah had told him that the Federal Government had no problems cooperating with the state government in implementing its development projects.

“We in Penang will also do whatever is necessary to speed up and ensure the project is completed on time,” said Lim, who spent more than 30 minutes with Abdullah.

He said Abdullah hoped to keep the cost of the bridge, which has escalated from RM2.7bil to RM3bil, low so that motorists would not be burdened by high toll upon its completion in 2011.

Lim said he had submitted a letter containing suggestions and proposals on more allocations and development programmes for the state to the prime minister.

“It is the hope of the Penang people that all development projects by the federal government will continue in the state,” he said,

To a question, he said: “He is my prime minister and I have come here for the first time on behalf of the people of Penang (to discuss state matters).”

He said his misunderstood statement on the New Economic Policy issue was also discussed.

To further clarify and put the matter to rest, Lim said that he planned to act against a particular newspaper for allegedly misinterpreting his statement made on March 11.

To another question, Lim said, the move to introduce the open tender system by the Penang Government was a directive of the Treasury.

Abdullah told Bernama after the meeting that he had advised Lim to be careful with his statements, as he is now the leader of a state government.

“He should not be a populist. I told him that we have been observing closely what is happening in Penang.”

He said Lim should not make sweeping statements equating the NEP with corruption as it would cause anger and misunderstanding.

On Lim’s proposal for an open tender system based on a level playing field, Abdullah reiterated that it might not be fair to groups that were disadvantaged.

Abdullah stressed that the tender process must be equitable.

[nazrey]

Upen to prepare report on project
Saturday April 5, 2008
By PRISCILLA DIELENBERG

PENANG: The state government has directed the state Economic Planning Unit (Upen) to look into ways to expedite the construction of the second Penang bridge project.

Chief Minister Lim Guan Eng said he had directed Upen and other authorities to study steps to be taken and prepare a report on the matter.

He said the state would meet with the second bridge’s special task force head Tan Sri Zaini Omar next week and that in the meantime, he hoped to get a copy of report on the current status and position.

Lim said the directive was given after he met Prime Minister Datuk Seri Abdullah Ahmad Badawi in Putrajaya on Thursday to discuss state-federal relations.

“Before the meeting, we wanted to know what the situation would be. The Prime Minister has given assurance that the Federal Govern-ment would continue with all the infrastructure projects that were previously outlined, and that he hoped the delays in land acquisition for the second bridge project can be sorted out,” he said.

Lim also said the state government hoped that work on the expansion of the existing Penang Bridge would be completed as scheduled by August next year to cope with the increasing traffic volume until the second bridge opens in 2011.

He was speaking to reporters yesterday after a courtesy call by 20 members of the World Lim Clan Youth Association, led by its chief Datuk Lim Kah Chuan, at his office in Komtar here.

Asked if Penang would follow the Perak Government’s lead in issuing permanent land titles to all planned villages and new villages, Lim said the state would have to study the matter first.

Lim also said the state government had never made any allegation against his predecessor, Tan Sri Dr Koh Tsu Koon, regarding the ownership of a 1.52ha piece of land in Rifle Range.

He said Dr Koh should lodge a police report on the SMS rumour implicating him if he felt that he was wronged, adding that “we do not know how this matter arose, and who is making the allegation.”

Lim was responding to a call by Dr Koh’s former political secretary Mark Ooi for Lim to clarify the ownership of the land and put a stop to the false and malicious SMS.

[nazrey]

2nd Penang bridge to cost RM4.3b
By Marina Emmanuel Published: 2008/04/12
BusinessTimes

UEM Builders and China Harbour Engineering will now have to adhere to the price tag although each had presented higher costings, sources say

THE Government has finalised costings for the second Penang bridge, setting the figure at RM4.3 billion.

Business Times learnt that the matter was finalised at a meeting held yesterday between the Finance Ministry, UEM Builders Bhd and China Harbour Engineering Co Ltd (CHEC).

"The RM4.3 billion price was given by the government and both parties will now have to adhere to it although each had presented higher costings," a source said.

It is learnt that Second Finance Minister Tan Sri Nor Mohamed Yakcop chaired the meeting, which was also attended by Tan Sri Zaini Omar, who heads a task force for the implementation of the second bridge project.

The 24km second Penang bridge (of which 17km will be on water) will link Penang island and Seberang Prai.

UEM Construction Sdn Bhd - a subsidiary of UEM Builders Bhd - has named port builder and bridge construction firm CHEC as its main contractor for the bridge which will link Batu Maung on the island with Batu Kawan in Seberang Prai.

The source said in setting the final cost for the second crossing project, the government has taken into consideration the rising cost of materials such as steel.

"Both parties must come to an understanding on how they are going to work things out before they sign an agreement on the price," the source added.

It is learnt that the deal will be inked by the end of this month.

The iconic bridge, which will comprise 294 piers and 9,364 sections, will be the longest in South-East Asia and expected to be opened to the public by 2011.

[nazrey]

Second Penang bridge project extended
17 Apr 2008 11:11 AM

KUALA LUMPUR: The construction of the proposed second Penang Bridge has been extended for a further nine months from April 13, UEM Builders Bhd said in an announcement to Bursa Malaysia yesterday.

UEM Builders did not provide reasons for the extension other than saying that it is “to allow additional time for fulfilment of the conditions precedent as set out in the agreement”.

Last July, UEM Builders’ ultimate holding company UEM Group Bhd received the government’s nod to construct the 23km bridge linking the island to the peninsula. The project is to be undertaken by a consortium comprising UEM Builders’ wholly owned subsidiary UEM Costruction Sdn Bhd and China Harbour Engineering Company Ltd.

[nazrey]

Second Penang Bridge Delayed Due To Land Issue & Rising Costs
April 22, 2008 11:18 AM

KUALA LUMPUR, April 22 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi said the construction of the Second Penang Bridge will be delayed following problems getting the allocated land, the best design and increasing building costs.

"Several matters have delayed its construction. Firstly in getting the land that had been allocated for building the bridge.

"Secondly, there is a need to ensure that the given design is the most suitable and also the issue of cost where there may be changes due to increased prices," he told reporters after officiating the Asia-Europe Culture Ministers Meeting here today.

Abdullah said this when asked on why the building of the bridge was being reviewed under the Ninth Malaysia Plan (9MP).

He also explained that apart from the bridge, several other projects under the 9MP were being reviewed as well.

The building of the 24-km bridge linking Batu Kawan in Seberang Perai south and Batu Maung on the island has been receiving criticisms from various parties for its delay.

The original agreement between UEM Group Bhd and its consortium partner China Harbour Engineering Company (CHEC) has been extended for nine months to provide more negotiation time for them to reach an agreement that will be same with the original deal.

Earlier, UEM had given the guarantee that the building of the Second Penang Bridge will be smooth and completed as scheduled in 2011.

The bridge will be the longest in Malaysia and South East Asia once it is completed.

Last year, Malaysia and China signed a loan facility worth RM2.7 billion for the building of the bridge. The parties involved were the Government of Malaysia, Exim Bank from China and Bank Pembangunan (Malaysia) Bhd.

-- BERNAMA