GEORGE TOWN: The Penang Development Corporation (PDC) has dismissed claims that the state government awarded a land reclamation project without an open tender.
PDC chairman Chow Kon Yeow said the proposed 28ha reclamation area is not a new project but part of the Jelutong landfill rehabilitation project, which underwent an open Request for Proposal (RFP) exercise in 2015.
Responding to allegations from Bagan MP Lim Guan Eng, Chow said the additional reclamation area was already provided for under a joint development agreement (JDA) signed in 2020 between the state government, PDC and developer PLB Engineering Bhd.
He added that the additional area was needed for landfill rehabilitation works, recycling operations, temporary storage facilities, logistics routes and the extension of Jalan Sungai Pinang.
"The matter was presented to and endorsed by the state executive council on Aug 25, 2021," he said in a statement on Thursday (June 4).
He added that no reclamation or physical works had been carried out in the area.
"The project remains subject to various technical and legal requirements, including approval of the Environmental Impact Assessment (EIA) report by the Environment Department," he said.
Chow also said PDC would not take legal action against PLB Engineering over project management fees.
He said PDC was entitled to a RM25mil project management fee under the JDA, with RM5mil already paid by the state government.
However, the remaining RM20mil is not due yet as work on the landfill rehabilitation project had yet to commence
"The obligation to settle the remaining project management fee has not been triggered and is therefore not due yet," he said.
