Konsortium Zenith BUCG Sdn Bhd chairperson Zarul Ahmad Zulkifli has denied that the Penang highways-tunnel project will be undertaken by a RM2 firm.
Zarul has emerged as one of the faces of the consortium that was awarded the tender. See the Rocketkini report here.
Who exactly is Zarul and what is his background and expertise in tunnel construction and highways?
A Zarul Ahmad Zulkifli was reportedly the chairperson of Syarikat Pegasus Solutions Sdn Bhd, which operates the bus ticketing portal, ALLtickets.my (Utusan website). Here he is pictured with Minister Nazri at the launch of the portal in 2009. Interesting.
We still need to know more about the key players behind all three local companies, along with their company profiles, to evaluate their expertise for such a huge project.
As for BUCG, it is already involved in the construction of the Pearl@KLCC.
Juteras Sdn Bhd appears to be a project architects/resort design-and-build firm founded in 1997.
There is scant information online about the Cheras-based Sri Tinggi Sdn Bhd, apart from it being in the construction line.
What is going to be the local firms’ respective profit/revenue-sharing ratios arising from the development of the 110 acres of prime reclaimed land and the toll revenue from the tunnel, bearing in mind their vastly lower paid-up share capital/financial clout compared to the firms from China?
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Anil, The Govt had the options to pay like normal projects contract, i.e. Progress Payment; however, the Govt couldn’t fund it. Take note that IJM, Gamuda, WCT, Daewoo, etc, etc is proposing more than 160 acres and many wouldn’t even quote for the tunnel. I am not sure if you would do a research for all privatised projects and understand the “Payment-in-Kind” concept. I would not recommend investors to take this risks. GDV is not a correct methodology to compute as you are computing basing on a property developers having to fund the development cost of a piece of land.… Read more »
This is super-prime seafront land and would yield a lucrative profit which alone could fund all these projects, plus 30 years toll revenue bonanza!
Do you have the land valuation? Will it be super-prime as compared to Tanjung Bungah or Tanjung Tokong land? How much will it cost to buy a piece of land, say 100 acres at this site and at Tanjung Bungah and Tanjung Tokong? And even at RM500/sq ft, what is the price of purchase of the land? GDV? GDV is about development cost, including professional fees, marketing and construction costs added together to form the investment cost, thereafter, we include profit and risks and property agent fees to form the GDV. Assume I am the contractor for the Highway projects… Read more »
Thanks, Yeoh, we need to keep asking the questions, because there are plenty that need to be answered.
Anil, Contractors need to fund the project and take the risks for price fluctuation of materials and labour including economic risks and currency risks. In return, they hope to make some decent profit. That’s the essence of business. The current award of the 3 highway and tunnel is for the contractor to carry out the feasibility studies and social economic studies of the proposed project and it is contingent contract that should the studies (which will be carried out by professionals registered with the Board of Engineers) recommended that the project is feasible and viable, then the contractor is bound… Read more »
This is more than decent profits. Consider the GDV of 110 acres of super prime sea front land plus 30 years toll revenue. Whether RM6bn or RM8bn, it is peanuts compared to the billions of ringgit in revenue and profits these companies stand to make. And to think that the three local companies each have a paid up capital of less than RM5 million. Something does not compute here.
a rm 2 shelf company that never participate in the tender process was awarded with the tender. You think that they will reveal anything? Good luck man!
Hmm.. now let’s the other Directors start to unveil/present themselves.. 🙂
Rocket media defending the rocket. Who is rocketkini ???
From their site: “Roketkini adalah sumber maklumat utama berbahasa Malaysia dalam memahami agenda dan perjuangan Parti Tindakan Demokratik (DAP)”
Certainly not a credible source of information.
What about lies, distortions racism and religiousm by Utasan which is even worse
If you think it is tough being a developer, try being an average Malaysian who needs to buy a house or even an apartment, especially in Kl and Pg. Sure developers have a hard time, especially the big big ones. The bigger they are the harder it is for them, to count their money and look for places to keep them.
Tough to be a developer or contractor nowadays. Nothing much to comment. Except:
Nice suit & hair cut.
I am not against the project but for the sake of transparency and accountability, they should release the name of all the shareholders of the respective companies. If everything is done above the table, there is nothing to hide. Perhaps the NGOs should bring this up during the dialogue with the CM.
Not just shareholders, but also the main players and interests behind the companies.