KUALA LUMPUR (June 15): Eco World Development Group Bhd has signed the deed of revocation and rescission today with the Penang Development Corp after their mutual decision to rescind the award of the proposed RM10 billion Eco Marina project in Batu Kawan, Penang, to the developer.

The deed with the PDC would revoke and rescind the letter of award given to the EcoWorld, and all their respective rights and obligations, effective today, it told Bursa Malaysia in a filing.

According to the deed, PDC will refund the initial payments of the purchase and lease consideration, as well as the earnest deposit, interest-free within a month from today, with an automatic extension of time of another one month thereafter.

This would amount to RM159.25 million, which comprises the RM156.25 million initial payment for the purchase and lease, and RM3 million earnest deposit, for the 182-hectare plot, which costs RM796.27 million.

The land would have featured the Eco Marina project, comprising mixed development and an 18-hole golf course and clubhouse, with a gross development value of RM10 billion.

On June 8, after announcing the mutual rescission of the project with the PDC, EcoWorld said extensive studies undertaken as part of the detailed planning process revealed the acreage required for the golf course development would be significantly higher than originally contemplated, which adversely impacts the viability of the project.

Eco World was selected by the PDC, among two bidders in an open competitive tender.

Subsequently, PDC said it would call for fresh bids for the mixed development.

Eco World dipped one sen or 0.79% to close at RM1.26 today, for a market capitalisation of RM2.9 billion.