PSI may be scaled down, says CM

GEORGE TOWN: With the Federal Government agreeing to fully fund the state’s Light Rapid Transit (LRT) project, the Penang government will explore the possibility of scaling down or postponing part of the Penang South Islands (PSI) project.

Chief Minister Chow Kon Yeow said state officials would meet with SRS Consortium, the project delivery partner, to discuss the next course of action.

“The sale of land from PSI was supposed to fund the LRT project, but since Prime Minister Datuk Seri Anwar Ibrahim made the announcement to finance the LRT project, we can afford to scale down or postpone part of PSI.

“The state will still be involved in the LRT project as we will help with the land acquisition and other matters,” he said yesterday.

Chow added that Island A, aka Silicon Island, would have the Penang Green Tech Park, a high-technology industrial park that will feature research and development (R&D) facilities as well as digital technology infrastructure, ecommerce and business process outsourcing.

“The reclamation of Island A (930ha), which is expected to commence in the third quarter of this year, is supposed to be the continuation of the hi-tech legacy of the Bayan Lepas Free Zone,” he said.

In a brief video posted by Penang DAP on Facebook on Saturday, the Prime Minister was seen making the announcement on the LRT funding during his speech on stage.

“The Federal Government will add funds to a large scheme to enable Penang to implement its LRT project immediately.

“Within a week or two, we will meet up with the state government to set up the scheme, as it involves a large amount of loans that require the involvement of the Federal Government,” he said.

The Bayan Lepas LRT project is among the major components of the state’s mega infrastructure project, the Penang Transport Master Plan (PTMP).

The LRT line will cover a distance of 22km from Komtar to Permatang Damar Laut, with possible extension into three reclaimed off-shore islands on the Teluk Kumbar coast.

The PSI project, which is off the southern coast of Penang island, involves the reclamation and development of three islands covering 1,820ha, comprising Island A (930ha), Island B (566 ha), and Island C (324ha).

The state government intends to sell the islands to finance its ambitious PTMP, which is a massive infrastructure project that comprises highways, light-rail transit lines, monorail lines, and a cross-strait cable car line linking the island and mainland.

SRS Consortium is the state’s project delivery partner for the PTMP, a multibillion-ringgit project encompassing extensive public transport infrastructure and road systems.

The magnitude of the reclamation also worries NGOs and environmental activists, who decry the project’s possible impact on the marine environment and fishermen, despite explanations and assurances by the state government.