Penang govt won’t be financing PSI project, says CM

GEORGE TOWN: The state government will not be financing the cost of the reclamation and infrastructure of the Penang South Islands (PSI) project.

Chief Minister Chow Kon Yeow said while the implementing agency of the project will be announced later on, the state will not be involved in financing the project.

"The state government will not be financing the cost of reclamation and infrastructure on the island," he said at a press conference held at his office in Komtar on Thursday (May 11).

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SRS Consortium project director Szeto Wai Loong said the cost of the reclamation is RM6bil while the cost of the common infrastructure is RM2.5bil.

"We will be the master developer to ensure compliance and our job will mainly be reclamation and making it usable land. We will be creating land parcels to be auctioned to the highest bidder.

"The successful bidder will then build," said Szeto.

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He said the rest of the development will be up to the successful bidder.

"The responsibility is on them to build, we will just provide the common infrastructure," Szeto added.

Earlier at the press conference, Chow said that the PSI project will be scaled down with the 566ha Island B and 324ha Island C now shelved.

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,” said Chow.

The PSI project, which is off the southern coast of Penang island, originally 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.