Transparency is the best policy in Batu Kawan project bid

It is something of a mystery why the PDC has not clarified in public why it rejected a RM818mil bid by an IJM Corp Bhd-led consortium to develop the second phase of the industrial park.

THE Batu Kawan industrial park project continues to attract attention following a recent ruling by the Penang High Court, which awarded RM350,000 in damages and RM50,000 in costs to the state’s Chief Minister, Chow Kon Yeow, in his defamation suit against Tan Sri Tan Kok Ping, the honorary life president of the Penang Chinese Chamber of Commerce.

The suit was in relation to Tan’s defamatory remarks made during a media conference in October 2023 concerning the joint development agreement (JDA) of the second phase of the industrial park.

This issue embroiled the Penang Development Corp (PDC), Umech Land Sdn Bhd, which signed the JDA, as well as Sunway Bhd, which acquired a 70% stake in Umech Land just days before the signing.

Although the JDA was terminated by the PDC before the media briefing, the industrial park project remains an important component of the state’s economic growth.

Located on Penang’s mainland, where there is ample land relative to the island, the park benefits from strong connectivity and infrastructure.

Therefore, it is something of a mystery why the PDC, responsible for the state’s development, has not clarified in public why it rejected a RM818mil bid by an IJM Corp Bhd-led consortium to develop the second phase of the industrial park.

The bid was the highest among seven contenders, as recently reported by an online English portal.

Surely, with the news swirling around the project over the past year, the PDC owes the people of Penang – and to the country too, given the state’s role in industrial development – an explanation for rejecting the RM818mil bid.

The consortium’s proposal was dismissed during the request for proposal (RFP) stage on Nov 19, without any reason provided.

Earlier this week, the consortium issued a statement, expressing that “a summary rejection, without allowing the consortium to present and explain its solutions, is not consistent with the objectives of an RFP process”.

It further emphasised its commitment to “constructive engagements with the PDC and other stakeholders to resolve outstanding concerns and explore pathways forward”.

The ball is now in your court, PDC!