Concessionaire: Second bridge will be completed by November 2013

By JOSEPHINE JALLEH | Apr 19, 2011
josephine@thestar.com.my

The second Penang Bridge is 47.55% completed as of March.

The project is however 2.85% behind the 50.4% scheduled progress.

State Public Works, Utilities and Transportation Committee chairman Lim Hock Seng said concession holder Jambatan Kedua Sdn Bhd (JKSB) had assured the state government that it would catch up with the scheduled completion of the 24km bridge slated for November 2013.

Construction works on the bridge started in late November 2008.

Lim also said over 700 workers were working round the clock at the United Engineers Malaysia (UEM) segmental box girder plant in Batu Kawan to produce 8,092 units of segmental box girders for the bridge.

“They have already moulded 987 units. A total of 28 units are already fixed on-site out in the sea with 14 of them on each side of the bridge.

“Besides that, piling works are 84% completed while the building of pile caps and columns are 55% and 45% completed respectively,” he said during a visit to the plant yesterday.

Lim added that the two toll plaza buildings, to be located in Batu Kawan, were still on the design board.

“We will also implement a green concept for the package to be environmental friendly,” he added. Buildcast Sdn Bhd (a wholly-owned subsidiary of UEM Builders Bhd) production manager Anuar Abdul said there were 22 moulds and three factories at the segment casting plant. “Between 12 and 14 pieces of segmental box girders are produced in a day and the process is a tedious one,” he said.

The RM4.5bil second bridge project comprises three main packages — 

• construction of the sub-structure by CHEC Construction Sdn Bhd (the local arm of China Harbour Engineering Co Ltd), 
• casting of the segmental box girder by UEM Builders Bhd, and 
• construction of the Batu Kawan and Batu Maung exit and entry points and trumpet interchange by Cergas Murni, IJM Construction and HRA Teguh.

The bridge, which will link Batu Kawan in Seberang Prai to Batu Maung on Penang island, is poised to be the longest bridge in the country and Southeast Asia.

China setuju tingkat dagangan

China setuju tingkat dagangan
Oleh ZULKIFLI JALIL, HELMI MOHD. FOAD dan THOMAS CHONGpengarang@utusan.com.my

PUTRAJAYA 11 Nov. – Malaysia dan China hari ini bersetuju untuk meningkatkan perdagangan dan pelaburan dua hala terutama dalam bidang kelapa sawit dan kayu-kayan.

Perkara itu dinyatakan Perdana Menteri, Datuk Seri Najib Tun Razak hari ini, hasil rundingan bersama dengan Hu Jintao di Bangunan Perdana Putra di sini sempena lawatan rasmi dua hari Presiden China itu ke Malaysia. Pada sidang akhbar bersama dengan Jintao, Najib berkata, China yang merupakan rakan dagangan terbesar Malaysia berharap perdagangan dua hala akan berkembang pada masa depan.

‘‘Beliau menyatakan hasrat China untuk meningkatkan permintaan melibatkan minyak sawit dan kayu-kayan.

‘‘Kedua-dua pihak juga bersetuju projek Jambatan Kedua Pulau Pinang akan dilaksanakan dengan lancarnya dan kemungkinan lain melibatkan komitmen Malaysia untuk memberi projek pembinaan kepada syarikat China dalam membangunkan Empangan Mengkuang (di Seberang Perai) serta kerjasama dalam projek kilang kertas dan kilang melebur aluminium di Sarawak.

‘‘Malaysia juga bersetuju pada prinsipnya untuk memberi projek landasan berkembar dari Gemas ke Johor Bahru kepada (syarikat) China,” kata beliau.


Sebanyak lima memorandum persefahaman (MoU) berkaitan perbankan, pengajian tinggi dan pembetungan ditandatangani antara beberapa kementerian dengan syarikat China sempena lawatan Jintao itu.
Ketika ini pelaburan China di Malaysia bernilai AS$134 juta sementara pelaburan Malaysia di republik berkenaan berjumlah AS$1.36 bilion.
Sebanyak 67 peratus eksport Malaysia ke China terdiri daripada barangan elektrik dan elektronik serta komoditi terutama minyak sawit.
Pada masa sama, 65 peratus import Malaysia dari China juga melibatkan barangan elektrik dan elektronik, mesin dan alat ganti.
Sambil menyifatkan pertemuan dengan Jintao berlangsung dalam suasana amat baik, Perdana Menteri berkata, mereka berkongsi pandangan betapa hubungan Kuala Lumpur-Beijing telah memasuki fasa lebih menarik.
‘‘Kita komited untuk melonjakkan hubungan ini ke tahap lebih tinggi,” kata beliau.

...

Govt ramping up construction sector

Tuesday April 14, 2009
Govt ramping up construction sector
By IZWAN IDRIS

PETALING JAYA: The construction industry, which saw a dearth of jobs last year, has caught a glimpse of up-coming jobs from the stimulus spending this year.

This will be counter-cyclical in the sense that while the industry shrank last year, it may expand in a year of economic slowdown as the Government ramps up construction to offset negative growth in other sectors.

Analysts sense this impending recovery.

CIMB Research last week said IJM Corp Bhd was eyeing nine major contracts worth at least RM9.4bil in total.Eight are domestic projects. These include
the job to build a hospital in Putrajaya,
two packages involving the Pahang-Selangor interstate water project,
the West Coast Expressway,
the new low-cost carrier terminal in Sepang,
work related to the Penang Second Bridge project and
upcoming contracts to extend the existing two light rail transit (LRT) lines in the Klang Valley.
Contracts to extend the existing two LRT lines in the Klang Valley are among the upcoming projects.

All these contracts are in various stages of negotiations, and tenders for some of these projects are yet to be called. Other companies were also reported to be in the running for some of the projects being targeted by IJM. The prospective IJM job list gave some insight into the value of big domestic construction works that are in the pipeline. Recently, WCT Bhd was reported to be in the process of finalising some RM500mil worth of jobs in Sabah.

There is also talk about a new LRT line being planned to link Kota Damansara and Cheras that is estimated to cost RM30bil. This project, like some of the other upcoming jobs, should attract fierce bidding from the big contractors when it becomes available.

While the prospect of big projects coming in has fuelled investors’ imagination in the past weeks, an analyst at RHB Research Institute has a more sober view of the sector.“Generally, we continue to find it difficult to be positive on the sector over the short term,’’ the firm said in report yesterday. The key reasons for its lack of enthusiasm centred on the argument that the projects planned under the two stimulus packages were mostly small in size. The lack of availability of funds at the right price also remained a major hurdle for most private financing initiatives to take off.

RHB Research said that as focus shifted to rolling out projects under the two stimulus packages, it “believed certain highly anticipated mega projects” under the Ninth Malaysian Plan might be put on the backburner, or postponed to the 10th Malaysia Plan. The firm, however, acknowledged increased investors’ appetite for risk, and had assigned higher target prices for construction stocks under its coverage to reflect this. Fund managers are aware of this mood of recovery. Hence, share prices of the big contractors which have been rising, continued to edge higher yesterday, as they shrugged off concerns that prices of counters like IJM, Gamuda Bhd and Malaysian Resources Corp Bhd (MRCB) might have gone up too fast and too soon.
A key factor in driving up investors’ buying binge in recent weeks was high expectation that the pump-priming agenda of the new administration of Prime Minister Datuk Seri Najib Tun Razak would result in increased big construction job flow in the coming months.

Analysts, however, seem to prefer to wait and see if some of these “highly anticipated” projects materialise first. “We maintain our ‘neutral’ call (on the construction sector) as there is a lack of re-rating catalysts in sight,’’ ECM Libra Investment Research said in an update. “Key risks going forward include below-trend order book replenishment as well as implementation risks.’’
But investors are already betting that companies like IJM, Gamuda, MRCB and WCT will emerge winners.

IJM’s share price climbed six sen to RM4.70 yesterday – its highest level since mid-September last year. The stock has risen 67% since the start of the year, but is still a long way off its peak of RM8.82 reached in February 2007. Shares in Gamuda and MRCB advanced yesterday, with both stocks now chalking up year-to-date gains of 29% and 45% respectively. WCT, whose shares were clobbered in January, has also recovered strongly.

Syarikat khas ambil alih konsesi jambatan Pulau Pinang

Syarikat khas ambil alih konsesi jambatan Pulau PinangKUALA LUMPUR 4 Ogos - Kerajaan mewujudkan sebuah syarikat khas (SPV) 100 peratus miliknya sebagai pemegang konsesi Jambatan Kedua Pulau Pinang, yang seterusnya akan mengagihkan kontrak membina jambatan itu, kata Menteri Kewangan Kedua, Tan Sri Nor Mohamed Yakcop, hari ini.Beliau berkata, kerajaan akan memutuskan pihak mana yang akan memungut tol dan kadar tol, kemudian.Pada mulanya, konsesi dan penswastaan Jambatan Kedua Pulau Pinang diberikan kepada UEM Group dan projek itu sepatutnya dilaksanakan atas dasar bina dan pindah."Dulu, cadangannya adalah bagi konsesi (membina dan menguruskan jambatan itu). Sekarang ia akan dilaksanakan sebagai satu kontrak," kata Nor Mohamed kepada pemberita pada program 'Wanita Bersama Pemimpin' di sini."Itulah sebabnya ditubuhkan SPV itu, yang akan menjadi seperti pemegang konsesi dan pihak manapun yang membina jambatan itu, akan melakukannya sebagai satu kontrak," katanya.Menurut satu laporan hujung minggu kerajaan akan melaksanakan projek Jambatan Kedua Pulau Pinang dengan menubuhkan SPV yang diberi nama Jambatan Kedua Pulau Pinang Sdn. Bhd. (JKPP), dan mengurangkan 40 peratus daripada kos kontrak yang sepatutnya diberikan kepada UEM Builders Bhd. pada awalnya.Nor Mohamed berkata, beliau belum tahu pihak mana yang akan menerima kontrak itu tetapi menegaskan bahawa pihak yang mendapat kontrak itu tidak perlu bimbang tentang mengumpul dana berbanding pemegang konsesi.Laporan sebuah penerbitan mingguan juga menyebut bahawa berikutan penubuhan JKPP, sumber-sumber berkata, surat anugerah diberikan kepada Chinese Harbour Engineering Company Ltd. (CHEC) dan UEM Builders, masing-masing melibatkan wang berjumlah RM2.3 bilion dan RM1.3 bilion bagi pembinaan bahagian-bahagian tertentu jambatan itu.Sementara itu, sebahagian besar agihan kerja yang diberikan kepada CHEC tidak berubah daripada kontrak asal, tetapi yang diberikan kepada UEM Builders telah dikurangkan sebanyak RM900 juta.Menurut laporan itu, UEM Builders tidak begitu menyenangi pengurangan kontrak itu dan ia masih belum menunjukkan tanda-tanda sama ada mahu menerima tugasan itu di bawah syarat-syarat sekarang.
P/S : Tak tahu bila nak siap, Chinese Harbour Engineering Company Ltd. (CHEC) Company dari malaysia ke or overseas? Kalau susah2 sangat, kasi sahaja untuk company malaysia, IJM pown ade bule joint!

Penang 2nd Bridge in Parliament

03 Mac, 2009 17:03 PM
Kos Projek Jambatan Kedua Pulau Pinang Tetap Pada RM4.3 BilionBy: Ramjit-->

KUALA LUMPUR, 3 Mac (Bernama) -- Kos pembinaan projek Jambatan Kedua Pulau Pinang masih tidak berubah pada RM4.3 bilion walaupun harga minyak mentah dunia turun, kata Timbalan Menteri di Jabatan Perdana Menteri, Devamany Krishnasamy.Beliau berkata kos kontrak projek itu tertakluk kepada "variasi harga" bagi beberapa item tertentu."Kelewatan kepada jadual pelaksanaan projek ini juga tidak membimbangkan dan dijangka tidak akan menjejaskan tempoh siap projek ini yang dijadualkan pertengahan tahun 2012," katanya ketika sesi soal-jawab di Dewan Rakyat, hari ini.

Beliau berkata demikian ketika menjawab soalan Lim Guan Eng (DAP-Bagan) yang meminta kerajaan persekutuan menyatakan sama ada kos pembinaan projek itu berkurangan berikutan penurunan harga minyak serta kedudukan pemberian tender pakej kedua (superstruktur) dan ketiga (lebuh raya darat), sebab-sebab kelewatan dan tarikh persiapan.Devamany berkata terdapat sedikit kelewatan kepada jadual pelaksanaan projek itu disebabkan syarikat kontraktor masih belum dapat memasuki kawasan tapak di Batu Kawan kerana membabitkan nelayan, penternak ikan serta penternak kerang yang akan terjejas akibat projek itu.

Beliau berkata kerajaan persekutuan telah memuktamadkan rundingan dengan kerajaan negeri Pulau Pinang serta lima penternak kerang yang terjejas berhubung dengan bayaran pampasan."Pihak syarikat Jambatan Kedua Sdn Bhd (JKSB) akan membuat bayaran yang berkaitan dan penternak-penternak kerang ini bolehlah mengosongkan tapak kawasan tersebut bagi membolehkan syarikat kontraktor memasuki kawasan kerja pada bila-bila masa bulan ini," katanya.

Menurutnya, pakej kedua superstruktur telah diberikan kepada UEM Builders Bhd tertakluk kepada persetujuan akhir antara JKSB dengan UEM Builders berhubung harga kos pembinaan superstruktur berkenaan yang akan dimuktamadkan tidak lama lagi.

Sementara pakej ketiga (lebuh raya darat), Devamany berkata pelaksanaan projek akan dilakukan secara tender terbuka dan JKSB sedang dalam persiapan menyediakan dokumen tender.Jambatan sepanjang 26 kilometer keseluruhannya menghubungkan Batu Maung di bahagian pulau dengan Batu Kawan di tanah besar.Projek pembinaan jambatan itu adalah usahasama antara UEM Builders dan China Harbour Engineering.-- BERNAMA

Earlier report on Penang 2nd Bridge (2008-08-18)

KUALA LUMPUR, Aug 18 2008 (Bernama) - Construction works on the Second Penang Bridge are still going on, says the UEM Group, adding that two years of work worth RM200 million has already been done."The construction work continues. So far, at UEM Group Bhd, there has been no specific... formal instruction to do otherwise," said UEM Group managing director, Datuk Ahmad Pardas Senin to reporters after UEM World Bhd's extraordinary general meeting here Monday."UEM Builders still have a contract with us," he added when was asked on the progress of the project.

Some confusion had set in when UEM Builders Bhd received a letter from Jambatan Kedua Sdn Bhd (JKPP), the company that owns the Second Penang Bridge, on July 30, informing that it had taken over the duties of the Special Task Force and offered certain works on the project to UEM Builders.The government, however, had awarded the project to UEM Group last year on a concession basis whereby UEM Group subsequently awarded the construction of the job to a joint venture of Chinese Harbour Construction Company (CHEC) and UEM Builders with the former holding 51 percent.

"UEM Group did not receive the letter. That letter was sent to UEM Builders and UEM Builders have already replied in a query to Bursa Malaysia," he said.UEM Builders, meanwhile, in filing to Bursa Malaysia on Aug 6 said the scope of work awarded to it by Jambatan Kedua Sdn Bhd was over-lapping with the scope of work being negotiated by its parent company, UEM Group, with the government.UEM Builders said UEM Group was in negotiations with the government pursuant to an earlier decision made by the government to award the project to UEM group on a concession (build-operate-transfer) basis.

Asked if UEM Group would ask for compensation if the government totally revoked the project, Ahmad Pardas said, "I don't want to speculate.""At the end of the day it is a government project. We will always respect. The government has full right to which way they want the project to be." He added that the group was grateful to have been chosen as a party to undertake the project.The project is expected to be completed in 2011."We have done two years work. If we waited until everything is in place, nothing could have been done. We would not have been able to fulfill our undertaking by 2011," Ahmad Pardas said.He also added that if the company is able to progress with all things in place, it would be able to keep the momentum.

Elsewhere, Ahmad Pardas said the discussion on adjustment of toll rates nationwide was ongoing."We will always work and support whatever the government wants to do," he said, adding that nevertheless there would be issues to be addressed if there are to be any changes.-- BERNAMA

Penang Second Bridge

From Wikipedia

The Penang Second Bridge is a new bridge under construction in Penang, Malaysia. It will connect Batu Kawan on the mainland Seberang Perai and Batu Maung on Penang Island. It will be the second bridge to link the island to the mainland after Penang Bridge. The total length of the RM 3 billion bridge is 24 km (15 miles) and will become the longest bridge in Malaysia and Southeast Asia. China Harbour Engineering Co Ltd (CHEC) expected to start work on the second Penang bridge in November 2007 for completion in 2011, but it was then postponed for completion in May 2012, as the construction started late in November 2008, due to the unreasonable demand from UEM which caused the large delay. To reduce the cost of construction, its design is then modified, resemble to the first Penang Bridge. The bridge will be built with a large loan from the People's Republic of China. [1]

Overview
The planned bridge will be a four-lane dual carriageway bridge with two motorcycle lanes. Its total length is 24 km (15 miles). 17 km (10 miles) of the bridge will be across the South Channel, the channel between Penang Island and Seberang Perai. 1.5 km (1 miles) will be on the Batu Maung side, while 6 km (3 miles) will be on the Batu Kawan side. Six expressway interchanges will also be constructed as part of this project. K. Preamakanthan of UEM Construction Sdn Bhd is the project director responsible for this project.
It will have two observation platforms with rest and service areas at the central span. They are designed to resemble pearls. The rest area will be the first "floating" expressway rest area in Malaysia.

History
In August 2006, the Malaysian federal government unveiled a plan to build the Penang Second Bridge in the Ninth Malaysia Plan. In 12 November 2006, the groundbreaking ceremony for the new Penang Second Bridge was performed by Prime Minister of Malaysia, Dato' Seri Abdullah Ahmad Badawi.
After months of soil survey work and test pilling work has been done, China Harbour Engineering Co Ltd and United Engineers Malaysia Berhad (UEM Group) announce that the project is on track for completion in 2011. Construction works was expected to begin in January 2008. [2]
On April 2008, the government announced that the project will be delayed by 9 months due to land acquisition and design issue and also the rising costs of building materials[3]. Newly elected Penang Chief Minister, Lim Guan Eng proposed a toll discount for any delays on the project[4] and also express disappointment of the delay of the construction[5].
On July 2008, Jelutong MP Jeff Ooi reported that the loan for the bridge risked being withdrawn if the shareholder agreement between UEM Builders Bhd and its joint-venture partner China Harbour Engineering Co Ltd is not inked by August 2008. It has been reported that there have been disagreements between the two parties on the apportionment of the cost of building the bridge although the issue should be resolved soon due to UEM having a variation on the price on its portion.[6]

On 8 November 2008, the construction of the Penang Second Bridge by China Harbour Engineering Company (CHEC) has finally started.

Bridge specifications
Overall length - 24 km (15 miles)
Length over water - 17 km (10 miles)
Main span : Length - 250 m (-- feet)
Height clearance (above water) – 30 m (-- feet)
Number of vehicle lanes – 2 + 1 for motorcycles (each direction)
Targeted date to be opened to the public – May 2012
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/h (-- mph)
Percentage of local contents to be used - 60%

Global crisis will slow UEM's growth

UEM: Global crisis will slow growth
By Zaidi Isham Ismail
Published: 2008/10/23
BT

INFRASTRUCTURE and property group UEM Group Bhd expects slower growth in the months ahead because of the global economic slowdown.Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, that UEM Group, which has up to RM5 billion worth of projects in the country and overseas, will not be severely affected by the crisis although slower growth is expected."We don't feel the impact just yet, but there will definitely be slower growth."But our projects in Iskandar Malaysia and India are proceeding as planned," Ahmad Pardas told Business Times at the group's Hari Raya gathering in Kuala Lumpur yesterday.

The diverse group, which has interests in construction, property and highways, among other sectors, controls UEM Builders Bhd, Pharmaniaga Bhd and UEM Land Bhd, which is expected to be listed by month-end.UEM Group in turn is wholly owned by government investment arm Khazanah Nasional Bhd.

On the second Penang bridge, Ahmad Pardas said the group was still awaiting word from the government on any new development.The government last month withdrew the second bridge concession awarded to the group.

2nd Penang bridge's cost may breach RM5b

2nd Penang bridge's cost may breach RM5b
By Marina Emmanuel
Published: 2008/07/03
BTimes

The total cost has escalated to RM4.59 billion from RM3.6 billion, says UEM Group, adding that it can pass on extra costs if the prices of raw materials go up further

UEM Group Bhd, the main contractor of the second Penang bridge, says the total cost of the project is now RM4.59 billion, but it can even breach RM5 billion if prices of raw materials rise further."The costs of these items can only be determined as and when we procure them," managing director Datuk Ahmad Pardas Senin told reporters during a site visit at Batu Kawan on mainland Penang.The bulk of the cost, or RM3.32 billion, is for the portion of the bridge over water, followed by RM997 million for the portion over land . Another RM285 million (6.2%) is for the design, concept and preliminary works that was agreed with the government.However, UEM can pass on additional costs if the price of materials like steel, is higher.

"I believe that without the fluctuation clause (in an agreement signed between UEM and the government), no organisation will be willing to start any construction because you will definitely be running at a loss," said Ahmad Pardas."I would also like to clarify that the original costing for the whole project is RM3.6 billion and not RM2.7 billion as reported by some media previously."The RM2.7 billion was actually referred to the cost of building the 17km-bridge span over water. As the construction of a bridge would also include those built on land, another RM900 million should also be included in the original costing as it was allocated to build expressways, interchange and toll plazas," Ahmad Pardas added.

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 China Harbour Engineering Co Ltd as its main contractor.UEM Group now holds the concession for the first Penang bridge. Under that agreement, UEM could seek compensation if a second bridge was built.However, Ahmad Pardas declined to say what UEM is planning to do, saying there are many ways to deal with the issue.UEM Group also yesterday indicated its intention to tender for the concession rights of the second bridge."The company has the experience and knowledge as its is currently managing two important crossings which are the Penang Bridge and the Malaysia-Singapore Second Link."All these will definitely help justify why UEM Group should be the most suitable party ...," Ahmad Pardas said.Meanwhile, UEM is set to buy 112ha of land in Batu Kawan and Batu Maung for the project. It is expected to pay a total of RM57 million in compensation to affected parties which include private land owners and Penang Development Corp.

2nd Penang bridge deal has variable cost clause

2nd Penang bridge deal has variable cost clause
The Star
26 June 2008

KUALA LUMPUR: The building cost of the second Penang bridge is expected to be higher than the estimated RM4.3bil, as the agreement includes a variable cost clause which accounts for possible increase in building material prices. According to UEM World Bhd chairman Tan Sri Ahmad Tajuddin Ali, the RM4.3bil price tag was based on building material prices as at end-December 2007 and included the cost of land acquisition and design. Since January, international prices of steel and cement have escalated close to 50%. Locally, the Government has also liberalised both the sectors by removing the ceiling prices of certain-related products.

Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, having the clause did not mean that the group “would be irresponsible to allow the project cost to increase. This project won't be completed next month but will last until 2011. Today, the prices are up but we don't need to buy all the steel and concrete unless we're so conservative to assume that the uptrend will continue for the next two years,” he said after the company AGM yesterday.

Saying that construction was likely to pick up speed in the “next couple of months,” Ahmad Pardas added that the group could leverage on its subsidiary, Cement Industries of Malaysia Bhd, to manage part of the material cost.

Ahmad Tajuddin noted that the Government planned to open the tender for the concession to operate and maintain the bridge. “The bridge will be owned by the Government, which will determine the toll rate later,” he said, adding that UEM World intended to submit a bid for the concession.

Ahmad Pardas said the group saved about 25% in procurement cost for its Nusajaya project, thanks to e-bidding and pre-buying strategies. Despite the current challenging economic conditions, UEM World is determined to achieve its key performance index of 13% growth in revenue and return on equity (ROE) of 13% for the year ending Dec 31, 2008. This would be driven by its engineering and construction, healthcare and property development businesses, Ahmad Pardas said. Last year, UEM World's revenue grew 46% while generating a ROE of 41%.