Additional 28.3 ha area part of TPSJ project, no-tender claims unfounded, says CM Chow

GEORGE TOWN (June 4): The proposed additional area of about 28.3 hectares (70 acres) is not a new reclamation project awarded separately by the Penang government, but is instead part of the implementation mechanism for the Jelutong Waste Disposal Site (TPSJ) Safe Closure Project.

Chief Minister Chow Kon Yeow said the TPSJ has undergone an open Request for Proposal (RFP) process advertised by the Penang Development Corporation (PDC) in 2015 before PLB Engineering Bhd (PLBE) was selected as the project developer.

Chow, who is also the PDC chairman, said a joint development agreement (JDA) was signed on Feb 21, 2020, between the state government, PDC and PLBE to carry out the TPSJ rehabilitation project, which had been identified as a high-risk area in terms of safety, environmental pollution and geotechnical stability.

“As such, the allegation that the state government awarded a new reclamation project without an open tender is baseless.

“Any implementation in the additional area remains subject to technical requirements and approvals from the relevant authorities in accordance with existing laws and procedures,” he said in a statement yesterday.

Chow explained that about four hectares (10 acres) are required to create a buffer zone around the original site to enhance the stability of the peripheral areas of the TPSJ site.

“The presence of landfill gas at the rehabilitation site also poses safety risks to settlements and the operation of recycling machinery. As such, about 24 hectares (60 acres) are needed to accommodate 20 sets of recycling machines within enclosed temporary buildings to ensure that recovery and recycling operations can be carried out safely and effectively,” he said.

He also stressed that no reclamation or physical works have commenced at the site, and any such works remain subject to various technical and regulatory approvals.

Regarding the TPSJ project management fee, Chow said it had been set at RM25 million, with PDC having already received RM5 million from the state government so far, while the remaining balance will be paid in installments of RM5 million per year.

He added that the first installment was to be made within 30 days from the date of receipt of the Commencement of Work (COW), but since the COW for the TPSJ project has not yet been obtained, the obligation to settle the remaining fee has not yet come into effect and is therefore not currently enforceable.

Therefore, at this time, PDC does not have any cause of action against PLBE regarding the matter.

Previously, Bagan Member of Parliament Lim Guan Eng asked the state government for an explanation regarding allegations that the 28.3-hectare land reclamation project in front of Karpal Singh Drive here was not implemented through an open tender process and why PDC did not initiate legal action against PLBE over the issue of project management fee payments.

..........

EdgeProp brings you another month of data-driven insights, exclusive interviews, and market commentaries. Subscribe now for your free copy!