By Intan Farhana Zainul & David Tan
The Penang Hill cable car project is estimated to be completed by early 2027
GEORGE TOWN (Aug 6): Bank Pembangunan Malaysia Bhd (BPMB) will be providing RM367.2 million in financing for the Penang Hill cable car project, paving the way for full-scale construction to begin.
On Wednesday, BPMB signed a financing deal with Hartasuma Ropeways Sdn Bhd, marking a milestone for the project to go into full-scale construction works. It is understood that the Penang Hill cable car project was in the works for almost five years
Hartasuma Ropeways is a special purpose vehicle of Hartasuma Sdn Bhd, which is led by Tan Sri Ravindran Menon.
The financing facility from BPMB is the bank’s first blended finance initiative, which combines debt financing with an equity investment through its subsidiary BPMB Dana Sdn Bhd. The equity investment portion is for up to RM30 million.
The signing ceremony also marked the launch of the infrastructure initiatives aimed at improving the access to Penang Hill, expanding the connectivity to the Penang Hill Biosphere Reserve, enhancing the visitor experience and supporting the state’s long-term tourism growth.
According to Penang Chief Minister Chow Kon Yew, Penang Hill receives almost 1.6 to 1.8 million visitors annually, of which more than one million are through the current funicular.
“The cable car will not replace the funicular but complement it [by] alleviating congestion, enhancing the visitor’s experience and strengthening our preparedness for peak periods in a sustainable manner,” he said at the signing ceremony at Georgetown’s G Hotel Gurney on Wednesday.
Hartasuma’s Ravindran said that the cable car project would cost a total of RM500 million that includes the construction of the cable car as well as the supporting facilities and infrastructure surrounding it.
The Penang Hill cable car project is estimated to be completed by early 2027.
“This is a legacy project and we are proud to carry it forward with the commitment and care it deserves,” he said.
Hartasuma Ropeways will be developing, financing, operating and maintaining the cable car under a 30-year concession.
The cable car system is expected to span over 2.73km from the Penang Botanical Gardens to the top of Penang Hill. It is designed to carry up to 1,400 passengers per hour per direction, at an estimated 10-minute journey.
Based on a back-of-the-envelope calculation, the cable car would have a potential capacity of more than four million passengers annually, assuming eight hours of daily operation.
Mulls more cable car projects in Penang
The state government had asked Hartasuma to look into the feasibility of connecting the Penang Hill cable car from the Botanical Gardens with Gurney Bay.
Chow said since Gurney Bay is also an iconic landmark, it made sense to link the two popular sites with a cable car project.
The stretch from Botanical Gardens to Gurney Bay is about 2.5 km as the crow flies.
Chow said the Penang Hill funicular train hit one million passengers this year on July 25, signalling a strong and growing demand for the cable car project.
“The Astaka food court redevelopment on the hill – another long-awaited project – has entered its construction phase following the completion of demolition works and the official handover to the contractor on July 21,” he said.
Chow said when completed, the cable car would also integrate seamlessly with the upgraded Astaka building, transforming the arrival experience for visitors and providing a fillip to the local economy through increased footfall, better amenities and enhanced tourism offerings.
It is learnt that the new Astaka will feature a rooftop viewing deck and activity area, along with improved facilities such as a new garbage centre and food composter room for waste management, a larger centralised washing area, storage space for vendors and enhanced ventilation for better air circulation.
Edited By Kamarul Azhar Azmi
Sources: The Edge
