World-class artificial island resort proposed by developer, says Penang CM

Published by Free Malaysia Today• 04/11/2019• 04:35 pm

Penang Chief Minister Chow Kon Yeow (centre), Chief Minister Incorporated deputy general manager Barathi Suppiah and executive councillor Yeoh Soon Hin show artist’s impressions of the ‘coastal resort and spa’ project mooted in the 2020 state budget

GEORGE TOWN: The Penang government today confirmed that a proposal to reclaim 121ha off the waters of Batu Ferringhi for a world-class resort came from a private developer.

Chief Minister Chow Kon Yeow said the plan was being deliberated by technical agencies.

“Not all proposals can go through. If one gives us a proposal, we will pass it to the various state departments to evaluate, to see if it is what we want.

“We may even call a request for proposal to hear other ideas, if we find this idea of reclaiming land is viable,” he told reporters at the state assembly building today.

Local NGO Citizens Awareness Chant Group (CHANT) revealed the proposed project and raised several questions over it last week.

It said pictures believed to have been lifted from the developer’s proposal to the state government showed the creation of luxury hotels, wellness centres, apartments and “floating villas”.

The initial drawings, CHANT said, showed the project would begin near the floating mosque in Tanjung Bungah and continue northwards to Rasa Sayang Resort in Batu Ferringhi.

It also said that based on the drawings, an island would be formed off the waters of Batu Ferringhi, while a strip of the beach would be reclaimed.

Chow said while the proposed area was not zoned for reclamation, changes could be done in town planning documents in the future, if needed.

He also said the proposal was not the same “coastal resort and spa” proposed by the state government in the 2020 Penang budget.

The coastal resort and spa, he said, would be built on a 1.7ha promontory (high land) between Moonlight Bay and Miami Beach which was formerly a temporary settlement for the 2004 Indian Ocean tsunami victims.

He said the land was currently empty and the state, through Chief Minister Incorporated (CMI), had called for a request for proposal (RfP).

CMI deputy general manager Barathi Suppiah, who was present at the press conference, said the project involved a five-star hotel, a spa and a “low density, nice and unique” tourism product.

She said the state had proposed a Design & Build-Operate-Transfer project on a 30-year lease with an option to renew for another 30 years, twice.

Barathi said the project sponsor must pay CMI 5% of its gross profit together with a lease amount to be mutually agreed upon for a period of the first 30 years and the subsequent lease periods.

She said those interested must have a minimum paid-up capital of RM5 million.

“The overall project cost is estimated to start from RM10 million up to RM100 million, depending on the number of proposed rooms by the project sponsor. We have capped the number of rooms at 100,” she said.

The request for proposal, called last Friday, ends on Dec 31.