New landmark in the making: Early works on Penang’s man-made island project – Silicon Island (marked by the dotted lines) – kicked off after it secured approval from the relevant agencies, says Chow.
CM: Payments being given out in phases based on scope of ‘Silicon Island’ project
GEORGE TOWN: Penang is giving out ex gratia payments to fishermen affected by a man-made island project off the southern coast of Penang island, says Chief Minister Chow Kon Yeow.
Starting yesterday, he said the payments were being given out in phases to those who had signed up for the Social Impact Management Plan (SIMP).
This came after the project, to be known as the “Silicon Island”, had secured the Environmental Management Plan (EMP) approval from the Penang Department of Environment (DOE) on July 21.
“Those concerned will receive 75% of the ex gratia payment, with the balance of 25% to be given out early next year.
“The payment will be done in phases based on the project scope that has been reduced to one man-made island from the three proposed initially,” he said.
He said the “Silicon Island” project was designed based on environmental, social and governance (ESG) principles.
“It is expected to become a leading technology centre in the region that will provide job opportunities that will have long-lasting economic benefits to the locality.
“To begin with, there will be some 600 marine and land-based jobs when reclamation is carried out over 18 months, with priority given to fishermen and local residents,” he said in a statement.
Besides the EMP approval, the environmental impact assessment (EIA) report for the reclamation project had been approved with 71 conditions on April 11.
With the approval, early works such as deployment of marine buoys and silt curtain installation for the 930ha project began yesterday, followed by physical reclamation works on site.
Chow said the Penang government was also appreciative of the state DOE for its thorough assessment in evaluating and approving the EMP.
“This is the result of cooperation and joint efforts in ensuring that the development of Silicon Island will be carried out in compliance with the environmental and safety needs of the local community.
“I wish to thank all parties involved in contributing their input to the drafting of this,” he said.
Touted as the economic catalyst and new tourism attraction for Penang, the project’s planned developments include the Green Tech Park (GTP) and Heart of the Island (HOTI) business district to attract high-impact investments.
The reclamation effort in two phases would take between 10 and 15 years to complete.
The GTP would feature research and design facilities, digital technology infrastructure, e-commerce and business process outsourcing.
HOTI, on the other hand, has been planned as a waterfront commercial hub that would serve as the pulse of the island.
Silicon Island Development Sdn Bhd, which is 70% owned by SRS PD Sdn Bhd, has awarded the design, management and construction of the Phase 1 reclamation works of Island A to turnkey contractor SRS TC Sdn Bhd, a wholly-owned subsidiary of Gamuda.
The reclamation project was originally designed to fund part of the Penang Transport Master Plan, which includes the Pan Island Link and light rail transit (LRT) projects.
But with the Federal Government fully funding the LRT project from Bayan Lepas to Tanjung Bungah, the Penang South Islands project was scaled down by 49%, with Island B (566ha) and Island C (324ha) shelved indefinitely.
Only Island A (930ha), or “Silicon Island”, will be reclaimed.
However, Consumers’ Association of Penang (CAP) and Sahabat Alam Malaysia (SAM) have appealed to both the federal and Penang governments not to proceed with the project.
In a joint statement, the groups said scaling down the project from three islands to one had not eased their concerns and those of the fishing community.
“This project is simply not needed. Land on the mainland is more than sufficient for any expansion of economic activities.
“Destroying a vital ecosystem that is bio-diverse and which cannot be replaced is simply unjustifiable and does not make any sense,” the statement said.
