No request by CZC for reauction of land near Gurney Drive, says Chow

The Penang government has received no fresh request from Consortium Zenith Construction Sdn Bhd (CZC) to reauction a 2.42ha plot of land near Gurney Drive after an earlier auction failed to attract bidders.

Chief minister Chow Kon Yeow said the initial auction in September was conducted at CZC’s request to raise funds for the remaining construction work on the Package 2 Highway Project, a bypass linking Bandar Baru Ayer Itam (Farlim) to the Tun Dr Lim Chong Eu Expressway.

“To date, the state government has not received any fresh request from CZC to facilitate a reauction as the company is no longer facing cash flow constraints and can complete the remaining works, which are now more than 95% done,” he told the Penang state legislative assembly today.

Chow was responding to Lim Guan Eng (PH-Air Putih), who asked about the unsuccessful land sale through an open tender and whether another auction would be held.

He said the previous auction was widely advertised in newspapers, on the official websites of the Penang land and mines office and the northeast district and land office (PDTTL), and through the Real Estate and Housing Developers’ Association Malaysia on Sept 7.

However, Chow said participation depended on the interest and readiness of qualified bidders, adding that the land administrator could not guarantee bids despite extensive publicity.

He said any further action involving the land would be subject to a decision by the state authority, with PDTTL responsible for implementing the necessary follow-up measures.

The land, located along Jalan Peter Paul Dason near Gurney Drive, was offered at a reserve price of RM313.632 million, equivalent to RM1,200 per square foot.

Under the land-swap financing arrangement, proceeds from the auction were expected to cover the value of land owed to CZC for work already completed, with any surplus to be shared between the state government and the company according to the agreed terms.