BKIP2 to go for another round of bidding after second RFP fails

GEORGE TOWN (May 13): The Penang Development Corp (PDC) will open a third round of bidding for the Batu Kawan Industrial Park 2 project (BKIP2) in Byram as its second request for proposal (RFP) failed to proceed.

According to reports, Chief Minister Chow Kon Yeow (pictured) revealed that the RFP, advertised on March 10 last year, drew two bidders but could not proceed after the winning bidder’s strategic partner or joint-venture partner withdrew.

Chow said this in a written state assembly reply to Lee Khai Loon (PH-Machang Bubuk) yesterday, who asked about the status of the second RFP.

 “As such, the PDC board has agreed to recall the RFP and will advertise it again soon,” said Chow, according to a Free Malaysia Today (FMT) report yesterday.

Chow added that if the 226ha BKIP2 still failed to attract a suitable strategic partner, PDC would review all options, including its financial position, project viability, and market conditions.

No details were disclosed regarding the successful bidder, the competing bidder, the proposed bid values, or the agreement terms.

In 2023, PDC signed a joint development agreement with Umech Land Sdn Bhd to develop the RM3.5 billion project, with Umech Land expected to pay RM646.02 million for the land.

The deal was terminated following criticism over valuation and ownership changes.

In 2024, IJM Properties led a consortium with Aspen Vision All and Mettiz Capital with a RM818 million bid, but PDC rejected it because the proposal did not comply with five out of nine main requirements, reported FMT.

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