Summary of Concession Agreement For Build-Operate-Transfer (B.O.T) of the Project Facilities of the Penang’s People’s Park

Summary ( Prepared By: Legal Unit, Municipal Council of Penang Island) of Concession Agreement For Build-Operate-Transfer (B.O.T) of the Project Facilities of the Penang’s People’s Park namely:

(I) Subterranean Penang International Convention & Exhibition Centre (sPICE) and Complementary Retail/F& B Outlets/ Offices
(II) Refurbishment and Rectification Works to Existing PISA Indoor Stadium
(III) Refurbishment and Rectification Works to Existing PISA Aquatic Centre

1. As instructed by the Penang Chief Minister YAB Tuan Lim Guan Eng, MPPP is making public the concession agreement for the BOT of the above 3 project facilities known collectively as the Penang’s People’s Park that would yield a 7 acres green public park free for the public.

2. The Concession Agreement has been signed on 19/08/2011 between MPPP and Eco Meridian Sdn Bhd (EMSB), a wholly owned subsidiary of S.P Setia as the Concessionaire of the Project Facilities. The Concession Agreement has been duly stamped on 24/08/2011.

3. Kindly find as stated below the brief facts on the terms and conditions of the Agreement. sPICE will consist of :
(I) an exhibition hall
(ii) ball room
(iii) grand foyer &
(iv) complementary retail outlets.

4. Anticipated Costs For the Project.
The anticipated project costs to be borne by the Concessionaire (EMSB) is at least RM250,955,259.00 which could rise up to RM 300 million and includes the refurbishment and rectification works costs for existing PISA Indoor Stadium and existing PISA Aquatic Centre. SP Setia Group Berhad has given a performance security in a form of corporate guarantee worth RM10 million upon signing of the Agreement.

5. Concession/ Lease Period
Concession/lease period of the project facilities is from the date of signing of the Agreement up to a period of 30 years commencing from the concession period. EMSB is entitle to apply for a renewal of the lease for a two(2) further terms of 15 years each in the event of an extension or further extension.

6. Project Completion Date
The scheduled project completion date is 36 months from the commencement date. EMSB shall be liable to pay to MPPP an agreed liquidated damages for the delay in the completion of the Project Facilities at the rate of RM20,000 per day of delay.

7. Sale of Hotel Site in order to complement the Project Facilities
MPPP agrees to sell and transfer a part of Lot 7481 to EMSB for the purpose of a Hotel site with leasehold title 99 years. The purchase price of the Hotel site is RM13,669,980.00 calculated based on an agreed rate of RM100.00 per square foot. A Sale and Purchase Agreement has been signed between the parties on 19/08/2011.

8. Grant of Development Rights
MPPP agrees to grant to EMSB the right to Additional Density of any developments within the island of Pulau Pinang over and above the maximum permissible density for the land, provided always that the total sum of such development rights utilized and spread over all projects within the island of Pulau Pinang does not exceed 1,500 residential units(note that this is not additional 1,500 residential units per project but spread out throughout the island during the concession period). Should EMSB not be able to source land able to absorb the additional 1,500 residential units spread out throughout the island, then EMSB shall forfeit these rights at no cost to MPPP. Such development rights are only exercisable during the concession period and if the development rights are not completely exercised by the end of the concession period or prior to any early termination, the balance portion shall lapsed.

9. Low Medium Costs Housing Units
EMSB to construct 450 of LMC housing units which shall not exceed RM72,500 for the 1,500 residential units and the State Authority shall provide a piece of land for the purpose of the same.

10. Vacant Possession
Vacant possession of the Project site shall be on 31/10/2011.

11. Progress Reports
EMSB shall during the implementation period furnish to MPPP monthly progress reports in regards to the construction of the Project Facilities .

12. No Dealings
EMSB shall not transfer, charge, lease or deal with the Project site.

13. Annual Event Days
MPPP and the State Government shall have access to and use of the Project Facilities for all purposes necessary or incidental to its functions for a combined maximum period of 42 event days in a calendar year free of charge.

14. Traffic Impact AssessmentA (TIA)
A TIA of the area has to be carried out at and complied with.

15. Penang People’s Park(PPP)
PPP will fulfill Penang’s aspirations to be an international and intelligent city that is a location of choice for investors, a destination of choice for tourists and habitat of choice for sustainable living comprising 5 key important portions:-
1. RM300 million sPICE;
2. A new 7 acre public park
3. Refurbished, repaired and upgraded Penang International Sports Arena(PISA);
4. Refurbished, repaired and upgraded Aquatic Centre;
5. A new hotel and retail outlets and additional car park.

——– Mandarin Translation ————-

槟城人民公园基础设施的建设- 运营- 转让(B.O.T)的特许合约内容简介(由槟岛市政局法律组准备):

(I) 地下式槟城国际会展中心 (sPICE) 及零售商铺、饮食店铺、办公室
(II) 槟城湖内国际室内休育馆(PISA)翻新及整修
(III) 槟城湖内国际室内水上休育中心(PISA)翻新及整修

1. 在槟州首长林冠英的指示下,槟岛市政局在此公布上述三项计划的建设-运营-转让特许合约内容,上述工程也称槟城人民公园,为公众提供7英亩的绿色空间。

2. 上述特许合约于2011年8月19日由槟岛市政局及实达集团子公司Eco Meridian 私人有限公司签署(EMSB), 实达集团是上述设施的特许经营公司。有关合约已经于2011年8月24日盖章生效。

3. 以下是合约条件协议的概括内容,会展中心将包括:
(I) 展览厅
(ii) 大宴会厅
(iii) 大前厅
(iv) 零售商铺

4. 工程预估成本
上述EMSB特许经营的预估成本是至少2亿5095万5259令吉,可能上升至3亿令吉,工程包括现有的湖内国际室内体育馆及水上体育的翻新及维修工程。实达集团公司已经在签署协议时,缴付了一笔1000万令吉的企业履约保证金。

5. 特许租赁期限
上述设施的特许及租赁期限为30年(从合约签署的日期开始算起)。EMSB 可以申请更新租赁两次,每次更新期限为15年

6. 工程完工日期
工程预计36个月内完工。如果工程无法如期完工,EMSB将支付规定的违约偿金给槟岛市政局,每延迟一天付2万令吉。

7. 出售酒店地段以补助兴建设施经费
槟岛市政局同意出售及转移Lot 7481地段给EMSB,做为酒店地段,租赁期99年。上述酒店地段的出售价格为每平方公尺100令吉,总共为1366万9980令吉。双方已经在2011年8月19日签署买卖合约。

8. 授予发展权
槟岛市政局同意授权给EMSB,让他们提高槟岛发展项目的房屋单位密度,超越当局规定的最高密度,虽然发展商拥有这项发展权利,可是遍布全岛发展项目可增加的房屋单位不能超过1500个 (注意:这不是指每个项目可以额外兴建1500个单位,而是在特许经营期内全岛可增加的房屋总数。)如果EMSB无法找到土地,将上述1500个房屋单位并入他们的发展计划,届时,EMSB将被丧失这项权利,槟岛市政局无需支付任何费用。他们只可以在特许经营期内行使他们的权利,如果他们无法在特许经营期内行使他们的发展权,或提前中止,乘余的部分自动失效。

9. 中廉价屋单位
EMSB将在1500个单位以外,兴建450个中廉价屋单位,每个单位不超过7万2500令吉,州政府将提供土地供上述用途。

10. 空地拥有权
工程地段的空地拥有权将于2011年10月31日开始。

11. 进度报告
EMSB在工程开展期间,须每个月提呈工程进度报告给槟岛市政局。

12. 禁止工地买卖
EMSB 不能针对工程地段进行转移、收费、出租及买卖。

13. 年度活动日
如果槟岛市政局和州政府需要进行活动,我们有权免费使用上述设施高达 42天。

14. 交通影响评估 (TIA)
当局将进行评估, 并遵照有关结果。

15. 槟城人民公园(PPP)
槟城人民公园将会满足槟城成为国际及智能都市的愿景,即成为投资者的首选地、游客的旅游胜地及渴望永续生活的理想家园,涵盖5个重要的部分:

1). 3亿令吉的地下式槟城国际会展中心(sPICE);
2). 一个全新、7英亩的公园
3). 翻新、重修及提升槟城湖内国际体育馆 (PISA);
4). 翻新、重修及提升槟城湖内国际水上体育馆;
5). 一个新的酒店、零售商铺及附加停车场。

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