GEORGE TOWN, Sept 7 — The Penang government will auction a 2.42-hectare plot of land in Tanjung Pinang next month to help Consortium Zenith Construction Sdn Bhd (CZC) secure the cash flow needed to complete the remaining works on the Ayer Itam-Tun Dr Lim Chong Eu Expressway bypass project.

State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said the state agreed to auction the land after CZC sought assistance to monetise it and obtain the cash flow needed to complete the project by April 2027.

The freehold plot is located at P.T. 858 (Plot 7A), Seksyen 2, Bandar Tanjung Pinang in the northeast district of the island.

“The bypass project is funded not through cash payments to the contractor, but through a land-swap method, where land plots are transferred based on completed work claims,” Zairil said in a statement today.

He said CZC had so far claimed land worth RM695.977 million for completed works.

Of that amount, 4.7ha (11.6183 acres) of land worth RM427.657 million had been transferred to the company, he said.

“Therefore, RM225.768 million in claimed land value had yet to be transferred,” he said.

The project, which links Ayer Itam to the Tun Dr Lim Chong Eu Expressway, was about 92.46 per cent complete as of August 31, while its financial progress stood at 81.69 per cent, he said.

Zairil said the land, located beside Gurney Bay and Pulau Andaman, has a reserve price of RM313.632 million, or RM1,200 per square foot.

“It will be auctioned at 11am on October 7 at Level 51, Komtar,” he said.

“Profits from the sale will be shared between the state government and CZC,” he added.

Interested bidders must submit a bank draft deposit of RM3,136,320, or one per cent of the reserve price, payable to the District Land Administrator before 11am on the auction day.

Further information is available from the appointed auction agent, One Asia Property Consultants (PG) Sdn Bhd at 25-F Gottlieb Road, 10350 Pulau Pinang, or by calling +604-227 7222.

Participation in the auction is fully subject to the terms and conditions set out in the Proclamation of Sale issued by the Penang state authority.