E&O to award reclamation contracts by year-end

by **Cals** Sun 21 Sep 2014, 19:04

Business & Markets 2014

Written by Meena Lakshana of theedgemalaysia.com

Friday, 19 September 2014 16:01

KUALA LUMPUR (Sept 19): Developer Eastern and Oriental Berhad (E&O) plans to start the tender awarding process for reclamation works for its Seri Tanjung Pinang 2 (STP2) development project by year-end.

E&O is currently in the process of securing approval from the Penang state government to carry out the reclamation project offshore Tanjung Tokong in Penang.

The developer has already obtained endorsement of its STP2 masterplan by the Penang state government on June 10 this year.

E&O Deputy Managing Director Eric Chan said today the tenders would be attached with the conditions set by the Environment Department in accordance with the Detailed Environment Impact Assessment (DEIA) report approved on April 10.

"The tenders awarded will be across various sectors such as engineering and operations but it will include the attached conditions in the DEIA," he said at a press conference after the company's annual general meeting (AGM).

"We can then award the projects to contractors," he added.

The STP2 is a waterfront project that will see the reclamation of 307.5ha of two man-made islands (two islands separated by a canal) and 53ha of the Gurney Drive foreshore.

The company is expected to hand over the reclaimed land off Gurney Drive to the state government for infrastructure development of a new expressway, a new Gurney Drive promenade and a public park.
Chan also said the group is targeting a cumulative profit after tax (PAT) of RM450 million within a three-year timeframe, bolstered by the plans for its four growth engines and is also targeting RM100 million in revenue from its hotel division by financial year 2015.
The group reported a PAT of RM119.97 million for the financial year ending MArch 31, 2014.