GEORGE TOWN: The Penang Hill cable car project will be fully financed and developed by a private concessionaire, with no cost to the state government, the Penang Hill Corporation (PHC) said on Friday (May 23).

In a statement, the state agency said the RM245mil project was awarded to local rail firm Hartasuma Sdn Bhd under a 30-year public-private partnership (PPP) using a design-finance-build-operate-transfer (DFBOT) model.

Ownership will revert to the state once the concession ends, it noted.

PHC said the PPP approach was chosen to ease the financial burden on the state, with Hartasuma responsible for funding and operating the system. Austrian ropeway specialist Doppelmayr Seilbahnen GmbH has been tapped to supply the cable car technology.

The clarification comes amid local media reports citing political concerns over the project’s rising costs and current progress, with construction currently at just seven per cent completion.

PHC said the budget was based on estimates from a 2021 request-for-proposal (RFP), during a period marked by Covid-19-related economic uncertainty, inflation, as well as higher labour and material costs. The project design was also adjusted to strengthen long-term viability.

Despite the challenges, PHC said Hartasuma remains committed to delivering an international-standard cable car system spanning 2.73km from the Penang Botanic Gardens to the top of Bukit Bendera.

The project includes three main stations namely, the Garden Station at the base, a mid-route Turn Station and the Hill Station at the summit, as well as a multi-storey car park, commercial plaza opposite the Botanic Gardens Department and a dedicated bus parking space.

PHC said careful planning was underway to ensure the infrastructure integrates sustainably with the natural environment. Once completed, the cable car is also expected to ease congestion on Penang Hill during peak seasons and reduce chronic traffic around the Botanic Gardens area. - Bernama