GEORGE TOWN – Penang may opt to restructure the Penang South Islands (PSI) project and the related Penang Transport Master Plan (PTMP) in the wake of economic woes caused by the Covid-19 pandemic.
It is learnt that a revised agenda is now being discussed in view of the economic challenges the state must now navigate, with falling demand in the global economy and to cope with the pressure coming from climate change.
Incidentally, local leaders from PKR, a major partner of DAP in the Pakatan Harapan state government, have recently begun to openly express their reservations on the PSI mega-reclamation project.
Sources familiar with the project said that nothing concrete has been decided, but the state is now receptive to having a smaller model for PSI – originally branded as Penang South Reclamation (PSR) – which they hope can begin soon at a lower cost.
The implementation of the PSI, with an area of almost 17 sq km, involves the development of three artificial islands, with an area of 1,700ha in the waters off Permatang Damar Laut near Bayan Lepas.
It is being built to fund various infrastructure projects in the PTMP worth an estimated RM46 billion.
The state’s mega infrastructure projects are inundated with issues, including a perceived lack of support from federal agencies and the national treasury to execute them.
While one is the PSI, another is the construction of three key highway packages on the island, including a long-term plan to build a 6.2km undersea tunnel connecting Gurney Drive here with Bagan Ajam in Butterworth on the mainland.
Signs that the PSI was getting bogged down came to light last year when the state government and project delivery partner SRS Consortium Sdn Bhd revealed that only the 930ha Island A would be reclaimed, while the other smaller two would be considered when demand picks up for them.
But the Penang Forum, the main network of civil society groups opposing the project, is not willing to compromise. Its spokesman Khoo Salma Nasution said that no reclamation should be done whatsoever as it would have damaging effects on the environment and livelihoods of local fishermen.
Khoo referred to the original “better, cheaper, faster” PTMP model, which was the outcome of a commissioned study by United Kingdom-based Halcrow, the original traffic consultant for the masterplan.
The Halcrow report focused very much on “moving people, not cars” on the island, which is burdened with over-development. It included proposals for trams and bus rapid transit, among others.
The PSI is also affected by an appeal by civil society to reject the initial Environmental Impact Assessment, which was granted by the Environment Department (DoE) on June 25, 2019.
A hearing is scheduled next month, but it may be deferred due to the movement control order.
‘Embrace conservation and preservation’
Next month, the state is also seeking the environment management plan for the reclamation of Island A to be approved as the DoE had disapproved of the original plan.
Sahabat Alam Malaysia president Meenaskhi Raman shared Khoo’s insight, saying that the pandemic and changing global economy, coupled with climate change, means Penang must adapt and forge ahead without such a lavish and unfeasible physical concept.
She said that Penang needs to embrace conservation and preservation, as the pandemic has taught the state the importance of safeguarding Mother Nature.
On the undersea tunnel – packaged with three highways on the island – project delivery partner Consortium Zenith Construction Sdn Bhd is also overwhelmed with issues.
Instead of beginning the project, the company under new majority stakeholder ECK Development Sdn Bhd was said to have laid off more than 20 workers, including engineers and managers.
The company also cited continued movement restrictions as the main reason for stuttering earthworks.
There is also the possibility that the package 3 highway from Tg Bungah to Teluk Bahang cannot be constructed due to environmental concerns.
Economist Lim Mah Hui reckoned that there are environmental missteps here, but the central point is whether the delivery partners have the necessary capital to carry out such projects, especially when the pandemic has reduced market demand.
A proponent of PSI, Joshua Woo of DAP recently said that the detractors' raised points are old and certainly not the type to be a “project stopper”.
“It is an old subject that they are raising, and we have answered often that the project is a strategy to help Penang recover from the pandemic and creates jobs.”
But Woo did not outright reject the notion of scaling the project down, pointing out that the PSI and PTMP are expected to take between 30 and 50 years to complete, so the projects would take time to see fruition.
Fellow DAP representative from Pulau Tikus Chris Lee Chun Kit, however, said that the PSI is the best option.
“This option was presented to Penangites, and we got an overwhelming mandate (at the 2013 and 2018 general elections). We now have the responsibility to fulfil our promises. The jobs provided, as well as the infrastructure that will come with the project, will improve connectivity as we rush to become a high-income economy.”
According to Lee, although some argue that Penang does not have to be a major city like Hong Kong and Singapore, it does not need to be a clone of them. In essence, Penang can do better than them if given a chance, he said.
“We have the talents and the place. We just need to create those opportunities. Because if Penang falls behind, our brain drain will continue.” – The Vibes, June 17, 2021
