KUALA LUMPUR – Reform movement Aliran has urged Putrajaya to reconsider its approval of the revised Penang South Island (PSI) mega reclamation project, claiming that there has been a “shift” in the project’s rationale.
Recalling the initial proposal for the project, which set out to be a state government initiative to underwrite the RM46 billion Penang Transport Master Plan (PTMP) through the reclamation of three islands covering 1,620ha off Permatang Damar Laut, the non-governmental organisation said that reasoning is no longer applicable.
“In 2015, the Penang government chose the Gamuda Group-led South Reclamation Scheme (SRS) Consortium Sdn Bhd as its project delivery partner to implement RM46 billion worth of transport infrastructure projects under SRS’ so-called PTMP proposal.
“Under phase one (of the proposal), the state government was supposed to sell reclaimed land from two islands to raise funds to finance the RM10 billion single-line (light rail system) from Penang International Airport to Komtar and the ecologically risky RM9 billion Pan Island Link Highway.
“This financing model has flopped big time,” the group said in a statement today, alleging that the funds gathered from slower reclamation phases will not be sufficient to finance the above projects.
Gamuda owns 60% of SRS, followed by Loh Phoy Yen Holdings Sdn Bhd with 20% and Ideal Property Development Sdn Bhd with 20%.
Meanwhile, Aliran also said that the project appears to be more of a “property play” for selected contractors and developers, a concern previously voiced by the projects’ critics and environmental activists.
“The official rhetoric has quietly shifted. Instead of the reclamation being about raising funds for transport projects, it is now supposed to provide land to boost the Penang economy.
“The impact (of the project) on climate change, diminished fish-breeding grounds and reduced food security is serious,” it said, calling on the federal government to review its approval for the project.
It added that the state administration should make public the 71 conditions attached to the approval.
Yesterday, Chief Minister Chow Kon Yeow announced that the Natural Resources, Environment, and Climate Change Ministry has given the project its final approval.
Chow said that with the letter of approval dated April 11, Penang is set to reclaim all three islands under PSI, although work would only begin on the first island on the coast next to the Bayan Lepas airport runway.
Prior to this, green groups, fishing communities, and other activists had relentlessly opposed the project, citing concerns over environmental degradation and loss of livelihoods. – The Vibes, April 28, 2023
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