E&O obtains approval for commencement of reclamation works for STP2

Kuala Lumpur, 8 December 2014 – Eastern & Oriental Berhad (E&O) has received approval for the commencement of reclamation works for the Seri Tanjung Pinang Phase Two (STP2) project from the Penang State authorities. This follows the sequence of approvals E&O had earlier obtained with regard to the proposed STP2 project in Tanjung Tokong, Penang. Having fully complied with all relevant requirements, E&O had obtained approval of the Detailed
Environmental Impact Assessment (DEIA) by the Federal Department of Environment in April 2014, and received endorsement of the STP2 Masterplan by the Penang State Government inJune 2014.

With approval for the commencement of reclamation works for STP2, Tanjung Pinang Development Sdn. Bhd., a subsidiary of E&O, is inviting qualified and experienced contractors to participate in a Pre-Qualification exercise for the reclamation project that is open to Malaysianand/or international contractors as well as joint ventures between the two, who meet all mandatory requirements as stated in the Notice of Pre-Qualification published in the national edition of The Star and New Straits Times on 8 and 9 December, 2014. The main scope of works include: land
reclamation works, soil improvement works, dredging works, coastal protection works, marine piling works, and other associated marine works. Closing date for the submission of the completed Pre-Qualification document is 24 December 2014, 12 noon Malaysian time.

In 1990, a concession agreement was signed for the reclamation and development in phases of 240 acres extending the Tanjung Tokong foreshore, and 760 acres of island reclamation offshore. When E&O took over the twice abandoned project in 2003, this became known as Seri Tanjung Pinang 1 (STP1) and STP2 respectively. E&O assumed the rights, obligations as well as liabilities of the original concessionaire and proceeded to complete the reclamation of STP1 in 2005. With development now nearing completion on STP1, E&O is progressing with the planned reclamation
and development of STP2.

At STP1, E&O has fully complied with its contractual obligations by surrendering a total of 27 acres as State Government Reserve and land for public uses, as well as 20 acres for the Penang Outer Ring Road (PORR) alignment. At STP2, over and above the contractual obligation to surrender 60 acres on the reclaimed island, E&O has agreed to reclaim at its own cost and surrender a further 131 acres along Gurney Drive, bringing the total of 191 acres to be surrendered to the Penang State Government as E&O’s contribution to infrastructure development.