Aspen (Group) Holdings Ltd, part of a consortium bidding for the Batu Kawan Industrial Park 2 (BKIP2) development, has clarified that its RM818 million proposal represents a full guaranteed cash return to the Penang Development Corporation (PDC), amid ongoing disagreement over how the bid value was assessed.
At a press conference, Aspen co-founder and group chief executive officer Datuk M Murly said the consortium strongly disagrees with PDC’s interpretation, which reportedly reduced the perceived value of the bid to about RM500 million after deducting several cost components.
Murly stressed that the RM818 million figure is the net guaranteed cash offer to PDC, with no deductions intended for infrastructure-related items such as a connecting bridge or utility tapping points. He said the state’s assessment was “arithmetically and factually incorrect”.
The consortium disputed several deductions made by PDC’s evaluation, including an estimated RM200 million for a connecting bridge, RM150 million for infrastructure tapping points, RM144 million for leasehold-to-freehold conversion premiums, and RM25 million in alleged opportunity costs linked to quarry operations.
Aspen explained that these components were not costs borne by PDC under the proposal. Instead, the consortium said it would fully fund key infrastructure, including the bridge, while also absorbing any conversion premiums if approved by authorities. The quarry component was described as a potential additional revenue stream for the state rather than a deduction from the bid value.
The bid was structured based on a 42-month accelerated payment timeline aligned with the RFP formula provided by PDC. Murly noted that under a 48-month timeline, the minimum return would have been about RM836 million, indicating that the shorter timeline was designed to enable faster cash inflows for the state.
Aspen also raised concerns over the lack of engagement from PDC after submission of the proposal, stating that no clarification meetings, technical discussions or formal queries were initiated by the authority. The consortium said its request to present and clarify its proposal was not accommodated.
Despite the dispute over valuation interpretation, Aspen reiterated that it respects PDC’s authority as landowner and master developer and accepts its right to determine the outcome of the request for proposal (RFP) process. However, it expressed concern that public interpretation of the bid may not fully reflect the original submission.
Murly also called for an independent review of the consortium’s proposal, alongside the relevant RFP documents and evaluation process, to ensure transparency and accuracy in public understanding of the bid structure.
The BKIP2 project has been subject to multiple rounds of bidding since 2023. Previous development plans, including a RM3.5 billion joint venture involving Umech Land Sdn Bhd, were terminated following scrutiny over valuation and ownership changes.
Chief Minister Chow Kon Yeow had earlier indicated that PDC may open a third round of bidding if a suitable partner is not identified, while reaffirming that all proposals must meet key development requirements and financial expectations.
Philippines