GEORGE TOWN – The Penang government remains baffled over why the federal government continues to be a stumbling block for its mega development projects.
Addressing the state assembly today, infrastructure and transport exco Zairil Khir Johari said the state does not understand why the federal government foiled Penang’s first light rail transit (LRT) project that was funded by Asian Development Bank (ADB).
He said the then Perikatan Nasional-led federal government rejected the LRT project early last year, where ADB offered US$500 million (RM2.11 billion) to undertake the project.
The state could not pursue the LRT project as the federal government had to approve loans from foreign financial institutions.
“ADB offered the loan after a presentation to financiers and industry players at an Organisation for Economic Co-operation and Development (OECD) event in Paris two years ago, the loan was part of the bank’s green financing initiative,” he said during the Penang Budget 2022 debate session.
He said the federal government allows other states in the country to carry out megaprojects, but it becomes a stumbling block when Penang proposes infrastructure projects for its progress and benefit of its people.
Zairil also said that a special purpose vehicle, the Penang Infrastructure Corporation, under the Penang South Islands and Penang Transport Master Plan projects, was allocated with RM13.8 million last year.
However, he said, the state-owned company did not utilise all the funds, because the projects had yet to take off and the funds were for the purpose of paying for office rentals, staff salaries and miscellaneous expenses.
Meanwhile, state Environment and Welfare Committee chairman Phee Boon Poh said the state needs cooperation and commitment from all industry players to tackle the environmental problems facing the state.
He said environmental problems such as air pollution, water pollution, solid waste disposal and toxic, illegal deforestation and natural resource reduction have resulted in an imbalance in the environment.
“Indeed, we are all aware that environmental issues are increasingly challenging and efforts to deal with them require high cooperation and commitment from all parties.
“Penang is not a dumping ground for plastic and e-waste, as some irresponsible industrialists import plastic and e-waste using Approve Permits into the state, which causes environmental, air and water pollution,” he told the assembly.
Phee added that landslide tragedies, flash floods, air, water and land pollution, global warming and so on are the effects of an ecosystem instability arising from climate change.
“These environmental issues are among the challenges that we need to deal with currently.”
While replying a question by Muhamad Yusoff Mohd Noor (Sg Dua-BN), Phee said the concessions of the Bagan Ajam Sea Collection was signed by Rayston Consortium (Butterworth) Sdn Bhd in 1999.
“This development includes mixed components such as housing, trade, community facilities and utilities, leisure and recreational areas, sandy beaches, and also part of the promenade for use of the public.
“The preparation of this terrain area has taken into account the social effects of the public. This was also to address the social impact that will take place, the state government has required the developer to prepare a Social Impact Assessment report.
“The preparation of this SIA is prepared in accordance with the provision of the Town and Country Planning Act 1976 (Act 172).
“The state government is committed to any reclamation project in the state that needs to obtain approval, especially the approval of the Environmental Impact Assessment,” he told the assembly.
Yusoff expressed his fear that the mixed development project with high-rise buildings would pose a security threat to the nearby air force base in Butterworth. – The Vibes, December 2, 2021
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