Penang bypass to proceed after failed land auction, Chow tells state assembly
Consortium Zenith Construction can complete the RM852 million Air Itam–Tun Dr Lim Chong Eu Expressway bypass using internal funding despite the failed auction of a six-acre freehold parcel near Gurney Bay. Chief Minister Chow Kon Yeow told the Penang state assembly that construction is over 95% comp
GEORGE TOWN (Nov 3): Consortium Zenith Construction Sdn Bhd (CZC) can complete Penang's RM852 million Air Itam–Tun Dr Lim Chong Eu Expressway bypass using internal funding despite the failed auction of state land near Gurney Bay, Chief Minister Chow Kon Yeow told the Penang state legislative assembly on Monday (Nov 2).
The state government has received no fresh request from the contractor to reauction the six-acre (about 2.43ha) parcel, which attracted no bidders at a reserve price of RM313.632 million, or RM1,200 psf. Chow said that CZC no longer faced cash flow constraints affecting the remaining works, with construction more than 95% complete. However, any further action involving the land would remain subject to a decision by the state authority, Bernama reported.
The freehold site, identified as PT 858 (Plot 7A), Section 2, Bandar Tanjung Pinang, in the island's northeast district, was offered for mixed-use development at the Oct 7 auction. The Penang Land and Mines Office's auction notice placed the parcel along Jalan Peter Paul Dason near Gurney Drive.
The project is financed through a land-swap arrangement, under which the contractor receives land against completed work claims rather than cash payments. State infrastructure, transport and digital committee chairman Zairil Khir Johari had explained in September that the state agreed to facilitate the auction after CZC sought assistance to convert its land entitlement into cash to fund the remaining works, Malay Mail reported. According to state publication Buletin Mutiara, Chow said the agreement allowed the land to be transferred to CZC or a party designated by the company. The contractor requested an auction after a direct buyer could not be found. Auction proceeds were intended to meet the value of land owed to CZC for completed work, with any surplus shared between the company and the state government under agreed terms, Bernama reported.
On construction progress, Chow said the main works had been completed, leaving road furniture installation, surfacing and finishing works. The remaining works are expected to be completed by April 2027, followed by a Public Works Department road safety audit to determine whether the route is suitable for opening to traffic, Sinar Harian reported. The bypass connects Bandar Baru Air Itam, also known as Farlim, with the Tun Dr Lim Chong Eu Expressway.
Chow said the auction had been publicised through newspaper advertisements on Sept 7, official land office websites and the Real Estate and Housing Developers' Association Malaysia. Participation nevertheless depended on the interest and readiness of qualified bidders and could not be guaranteed despite extensive publicity, he said.
