Benalec expects approval for EIA in Q1 for Tanjong Piai project

PETALING JAYA: Benalec Holdings Bhd, which submitted the Environmental Impact Assessment (EIA) for its Tanjung Piai Integrated Petroleum & Petrochemical Hub and Maritime Industrial Park project in Johor in October, expects to obtain approvals for the EIA in the first quarter of 2015, said its COO Bernard Boey (pix).
"We are waiting for EIA approval. The Tanjung Piai project we've already submitted, made all the necessary newspaper announcements. You will see that we've already gone through three notifications, went through the panel meeting and now waiting for their decision. Hopefully in the first quarter of calendar year 2015 we can get some decision from them," he told reporters after its AGM yesterday.
Once approvals are obtained, Boey said, it will start work on the 3,485-acre project, which will contribute to its financial performance in the financial year ending June 30, 2016 (FY16).
"The Johor project is a big project, so definitely it will bring us to the next level. It has a visibility of 15 years. This is for the entire 3,485 acres. Demand is there no doubt, you look at current market, demand is definitely there. For Tanjong Piai, we look at spillover of the Jurong play for those who need to expand. As you know, on Jurong island there's scarcity of land. So, our location is near, about 17km only. That gives them a very logical option to set up shop in Tanjong Piai," he added.
On the fourth extension of the binding term sheet between Benalec, the Johor state secretary and 1MY Strategic Oil Terminal Sdn Bhd, which was announced on Dec 12, 2014, Boey said the extension is for 1MY Strategic Oil Terminal to work out the terms and conditions with its offtakers.
"Our terms and conditions are more or less there, but we are waiting for their (1MY Strategic Oil Terminal and offtakers) terms and conditions to cascade down. They have not finalised theirs so they cannot sign ours...we are not privy to their terms and conditions, so we cannot comment on their side," he said.
Besides the Tanjong Piai project, the company has a RM204 million contract from Oriental Boon Siew (M) Sdn Bhd for the construction, completion and maintenance of coastal reclamation and associated works in Malacca.
"Boon Siew has yet to get approval for us to start work. We foresee probably next year we can get that and then we can start work in Malacca. That is RM204 million, covering 415 acres," said Boey.
Benalec still has another 240 acres to be reclaimed in Malacca, which will last the company for another two years. It is also in talks with concessionaires for more land reclamation contracts.
Boey said there are still jobs available in the local market and once it has hit its internal benchmark, it will look at regional opportunities.
The company currently has some 400 acres of landbank, of which 100 acres are in Pulau Indah and the balance in Malacca. The current selling prices for land in Malacca and Pulau Indah are RM42 psf and RM20 to RM25 psf respectively.
"We look for buyers, there's still demand for it in Malacca, Malacca being a heritage city and there's a lot of tourist arrivals. There's still demand for land for them to develop. We still have buyers coming on board, the most recent one in December. There are a few buyers, we are in negotiations. Hopefully if this pans out, we will make necessary announcements. Hopefully (we can finalise some deals) within FY15," he added.
"Outlook for 2015 is very good, we've done a lot of S&P (sale and purchase), waiting to be recognised in FY15 and FY16. As we articulated, about RM300 million worth and then there's the Boon Siew project that's RM200 million. So there's RM500 million already waiting to be recognised."