KUALA LUMPUR (Jan 22): Lifestyle property developer Eastern & Oriental Bhd (E&O) has formally signed a RM1.078 billion contract with China Communications Construction Co (M) Sdn Bhd (CCCC (M)) for the latter to undertake reclamation works for the Seri Tanjung Pinang Phase 2 (STP2) project in Penang.

Following this, mobilisation of works for STP2 is targeted to commence at the end of January, said E&O.

In a statement today, E&O said its subsidiary Tanjung Pinang Development Sdn Bhd (TPD) had today signed a reclamation contract with CCCC (M) for the proposed project. The reclamation contract sets out the terms and conditions, to be adhered to by the signatory parties, with regard to the reclamation process of STP2.

TPD had issued a letter of award (LOA) to CCCC (M) on Oct 28, 2015 to reclaim Phase 2A of STP2, an area of approximately 384 acres, inclusive of the 131 acres Gurney Drive foreshore for a contract sum of RM1.035 billion. CCCC (M) is a wholly-owned Malaysian subsidiary of China Communications Construction Co Ltd and was incorporated to principally undertake the reclamation of STP2.

The prescribed period to complete reclamation works under Package 1 was 30 months from the formal acceptance of the LOA by CCCC (M).

The LOA also included the conditional award for the proposed land reclamation works for the remainder of STP2, made up of Phase 2B and Phase 2C and covering an area of approximately 507 acres (Package 2).

The STP2 will see E&O reclaim a total of 740 acres in size and has a gross development value (GDV) of RM12 billion.

In December last year, TPD had secured a RM1.084 billion syndicated banking facilities from Maybank Islamic Bank Bhd and RHB Islamic Bank Bhd, to be utilised to part-finance the reclamation and infrastructure of the STP2 project.

E&O was granted the exclusive right to reclaim and develop 980 acres of land in Tanjong Tokong in 1992. It has to-date, reclaimed a total of 240 acres of land. -- theedgemarkets.com

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