GEORGE TOWN, Dec 14 — Local rail industry pioneer, Hartasuma Sdn Bhd, has been awarded the tender for the RM245 million cable car project in Penang.
Penang Chief Minister Chow Kon Yeow said the project was awarded through a public private partnership (PPP) on design, finance, build, operate and transfer.
He said Hartasuma was recommended by the evaluation committee and approved by the state tender board after evaluating proposals submitted by bidders through the state’s request for proposal (RFP) exercise
“The estimated investment by the successful bidder is expected to be approximately RM245 million and the project is based on a 30-year concession period, following the open bidding,” he told a news conference here this afternoon.
Chow, who is also Penang Hill Corporation (PHC) chairman, said the alignment and the suitability of the location of the cable carbohydrate to heft were taken into consideration by the evaluation committee.
He said the most feasible route alignment site is near the Penang Botanic Gardens.
“The project is expected to take three years to fully complete and be operational,” he said.
Hartasuma has 30 years of experience in the entire range of project delivery from project management, international supply chain and logistics management, testing and commissioning protocols and project financing.
The company has delivered more than 400 rail cars to public transport projects in Kuala Lumpur and has operational experience in the MRT Line 1 and Langkawi Cable Car.
Chow said the cable car will be another tourist attraction in addition to the existing funicular railway at Penang Hill.
“We hope it will help to redistribute traffic particularly during the peak seasons, complementing the existing century status of the funicular service,” he said.
He said the cable car will also play a practical role in tourist load balancing.
“PHC is looking forward to implementing environmentally friendly transportation option for visitors to the cable car station to reduce carbon emissions in the Penang Hill Biosphere Reserve area,” he said.
The Penang state government called for RFP on January 13 last year and it was extended to November 30 this year due to the pandemic and restricted movement control orders.
Chow said a total six companies submitted their proposals and Hartasuma was selected based on its strong technical and financial capabilities, project management experience and expertise in cable car project construction.
In a brief video presentation by the company, the cable car project is expected to be built with minimal footprint and cutting of trees.
The upper station will be located about 730 metres above sea level and it will take about 10 minutes to transport visitors from the lower station to the upper station.
Hartasuma Group Executive Director Tan Sri Ravindran Menon said the company expects to recover the costs of the project in 15 years.
“There will be different ticket pricing for locals, foreigners and children while senior citizens will get discounted prices and the physically challenged will be given free tickets,” he said.
He said construction of the project will take between 18 to 20 months once it has obtained all of the necessary approvals.
“We will start construction once we obtain the relevant approvals from the authorities,” he said.
PHC general manager Datuk Cheok Lay Leng said the project will need approval from the Tourism Ministry as the cable car is a tourism product.
He added that it will also require other approvals such as from the department of environment and other government agencies.