GEORGE TOWN: The Penang South Islands (PSI) project will be scaled down with the 566ha Island B and 324ha Island C now scrapped, says Chief Minister Chow Kon Yeow.
He said no further reclamation would be done for those components of the controversial project.
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He said this would result in a 49% scaling down of the man made island project.
“During a visit to Penang last week, Prime Minister Datuk Seri Anwar Ibrahim announced an allocation for the proposed light rail transit (LRT) project.
"He also asked the state government to scale down the PSI project.
"Taking his advice, the state executive council discussed the matter yesterday (Wednesday, May 10).
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"We accept the prime minister’s advice and will not proceed with the reclamation plans for Islands B and C.
“We have decided to only proceed with Island A, now known as Silicon Island," he told a press conference at his office in Komtar here on Thursday (May 11).
The PSI project, which is off the southern coast of Penang island, orgininally involved the reclamation and development of three islands covering 1,820ha, with the principal Island A covering 930ha.
The project site is in the waters off Permatang Damar Laut, near Bayan Lepas.
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Chow said Penang had obtained environmental impact assessment (EIA) approval for the reclamation project.
He said the approval was for all three islands, but it should not be a problem if the state proceeded with only one.
The project met with objections from the fishing community and environmental non-governmental organisations in the state who claimed it would damage the marine ecosystem.
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