GEORGE TOWN: The Air Itam–Tun Dr Lim Chong Eu Expressway bypass project will proceed as planned despite a RM313.6 million Gurney Drive land tender attracting no bidders.
Chief Minister Chow Kon Yeow told the state legislative assembly that the contractor had sufficient financial resources to complete the project without relying on proceeds from the land sale.
He was responding to his predecessor Lim Guan Eng (DAP-Air Putih), who asked whether the failure to sell the 2,43 ha plot in Jalan Peter Paul Dason would affect project payments and lead to a reduction in its reserve price of RM1,200 per sq ft.
“The project is already over 95 per cent complete, and all major structural work is done,” Chow said, brushing aside alarm over project funding.
“What is left is street furniture and road resurfacing. We expect full physical completion by April 2027, ahead of the Public Works Department’s road safety audit to clear it for public use,” he added.
On the October auction, Chow said the state government had stepped in at the contractor’s request to help raise funds.
Under the master agreement with Consortium Zenith Construction Sdn Bhd (CZC), the state had earmarked parcels for alienation directly to the concessionaire or its nominees.
“Because they could not muster market interest to take up the land via direct alienation, they turned to the state to run an open auction to unlock immediate cash flow,” Chow explained.
“Today, they face no cash flow crunch. We have received no fresh request to put the parcel back on the block, and they are fully capable of completing the remaining works using internal funds,” he said.
Asked whether the unsuccessful auction would affect property values in the surrounding waterfront area, Chow dismissed market anxiety as “purely academic.”
He defended the RM1,200 per sq ft price, pointing to precedent institutional deals in the immediate vicinity.
“We benchmarked this against the terms of our agreement and verified market deals, including Sunway’s acquisition along Jalan Pangkor near Gleneagles Hospital at roughly RM1,200 per square foot,” Chow said.
Chow acknowledged that the plot’s location, which does not directly face the sea, had been cited as a possible reason for the lack of interest.
However, he said any high-rise development on the land would still enjoy views of the Andaman Sea.
He added that, as there was no request for a fresh auction, the matter did not require further consideration.