Batu Kawan Industrial Project Will Proceed As Planned Says Chow

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Penang chief minister Chow Kon Yeow said the Batu Kawan Industrial Park 2 project has to go on and the state government has decided to continue the land development ‘with existing methods’.GEORGE TOWN: The Penang Development Corporation (PDC) has to proceed with developing the Batu Kawan Industrial Park 2 (BKIP 2) project in Byram on the mainland if there are no new bidders for the land, the state assembly was told today.
Penang chief minister Chow Kon Yeow said the state government is not discarding the BKIP 2 project because the PDC had spent up to RM1 billion in acquiring the land for industrial development.
Therefore, the project has to go on and the state government has decided to continue the land development “with existing methods” so that the land can be developed, said Chow.
He was responding to Lee Khai Loon (PH-Machang Bubok), who asked about the future of the BKIP 2 project following the suspension of the earlier proposed land deal with Umech Land Sdn Bhd.
Lee also asked whether Umech Land would be asked to file another tender or if other options were on the table.
Chow said he did not foresee Umech being asked to file another tender as the legal obligation between both the company and PDC ended following the suspension of the land deal.
“Let’s say if we have a new tender, Umech, Sunway or other parties are welcome to join (in signing a deal).
“If there is no party interested, PDC has to carry on with the project using its own resources.
“We cannot leave RM1 billion worth of industrial land left abandoned like that,” Chow said in the state assembly.
On Oct 17, the state government called off the Byram land sale to Umech following the change in its shareholding.
The suspension came after property developer Sunway Group had announced on Sept 27 that Umech Land and PDC had inked a joint development agreement to turn 226ha in Byram into an industrial park with a gross development value of RM3.5 billion.
Just two days before this announcement, Sunway had emerged as a majority shareholder (70%) in Umech Land via its wholly-owned subsidiary, Sunway Bukit Gambier Sdn Bhd.
On a separate matter, Chow said with the Perak government agreeing to supply treated water to Penang through the Sungai Perak water scheme, more discussions and follow-ups were needed on the cost of the treated water.
Chow said that both state governments hoped that this project will commence immediately and the federal government will make it a priority to approve the funding. - FMT

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