Penang enters into JV with SRS for PSR Island A reclamation

Published by The Vibes• 29/03/2021• 07:25 pm

State infrastructure and transport committee chairman Zairil Khir Johari says the Penang South Reclamation is yet to be started as the state is still awaiting the Environmental Management Plan approval by the Environment Department. – PenangPropertyTalk.com pic, March 29, 2021

GEORGE TOWN – The Penang government is involved in the reclamation for Island A of the Penang South Reclamation (PSR) project, where it entered into a joint venture (JV) with the PSR delivery partner SRS Consortium.

The consortium will have a 70% stake, while the state will own a 30% stake but without financial risks.

State infrastructure and transport committee chairman Zairil Khir Johari said that SRS will bear all investments, financial risks, and financing of the reclamation.

He said 100% liability for the corporate guarantee is on Gamuda Holdings, the main shareholder of SRS Consortium, which must bear all risks for any arising issues.

“The reclaimed land will not be in caveat to the bank,” Zairil said in reply to a question raised by Kebun Bunga assemblyman Jason Ong.

“There might still be some risks involved for the project, but it must be stressed that it is minimal, through the instrument that was agreed with SRS.”

SRS is a massive reclamation project to reclaim three islands off the southern coast of Penang island to fund the RM46 billion Penang Transport Master Plan (PTMP).

“The reclamation for Island A would cost billions, and the state could not afford it; thus, the need for the JV with SRS,” he said.

Zairil – who is also Tanjong Bunga assemblyman – said that the project will be based on a smart city concept and will be able to create 300,000 job opportunities by 2050 while creating more green areas for commercial, housing and tourism projects.

He said PSR is yet to be started as the state is still awaiting Environmental Management Plan (EMP) approval.

“We are expecting a reply from the Environment Department on the decision for the EMP approval soon,” Zairil said. – The Vibes, March 29, 2021