GEORGE TOWN, May 24 — In response to recent concerns raised by the Penang Gerakan State Secretary regarding rising costs of the Penang Hill cable car project, Penang Hill Corporation (PHC) has reaffirmed that the RM245 million initiative remains fully financed by the private sector, with zero financial burden on the state government.
The project is being executed through a 30-year Public-Private Partnership (PPP) with Hartasuma Sdn Bhd, under a design-finance-build-operate-transfer (DFBOT) model, with ownership to revert to the state at the end of the concession. PHC clarified that the project’s cost estimates were derived from a 2021 Request for Proposal (RFP) period marked by global economic challenges including the COVID-19 pandemic, inflation, and increased labour and material costs.
Despite these factors, Hartasuma remains committed to delivering a world-class 2.73-kilometre cable car system from the Penang Botanic Gardens to Bukit Bendera. Renowned Austrian ropeway manufacturer Doppelmayr Seilbahnen GmbH has been appointed to supply the cable car technology. The project includes three main stations, a multi-storey car park, commercial facilities, and dedicated bus infrastructure.
With emphasis on sustainable development that respects the surrounding UNESCO Biosphere Reserve. PHC underscored the cable car’s role in enhancing Penang’s tourism appeal, easing peak season traffic congestion, and creating long-term socio-economic benefits for the state.
