Pulau Pinang
The Penang South Islands project (formerly, Penang South Reclamation) will consist of the reclamation of three man-made islands.
In Pantau Projek, transparency is assessed based on 39 data points covering basic Project Identification as well as the phases of Preparation, Procurement, Implementation, and Completion. Data is only considered publicly available if it can be obtained online from a credible source.
Available on State Govt and Project Owner website
Available on 3rd party website
Not available on any website
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Project Identification
Project IdentificationProject owner | Penang State Government |
Sector, subsector | Industrial development Housing development Urban development (new township) Sewage |
Project name | The Proposed Reclamation and Dredging Works for PSR, Penang. Short name: Penang South Island (formerly Penang South Reclamation) |
Project location | The PSR islands will be at the coastline of southern Penang Island. 22km away from Georgetown via the Tun Dr. Lim Chong Eu (LCE) Expressway and about 352km away from Kuala Lumpur via the North-South Expressway. The new Penang South Islands (PSI) will be located at the south-end of Penang island. It consists of three islands (A, B and C), measuring a total of 4,500 acres (1,821 hectares) in total land size. |
Purpose | Economic transformation: developed as part of the expansion of Bayan Lepas Free Industrial Zone (FIZ) and Penang International Airport; as well as mixed development comprising residential and commercial areas.
The reclaimed land will also be sold to fund the Penang Transport Master Plan (PTMP). |
Project description | The project consists of the reclamation of three man-made islands – Penang South Reclamation (PSR). It covers a total area of 4,500 acres, with the islands being fully owned by the State Government. 1. Land reclamation for man-made island 2. Capital dredging 3. Development of industrial estate (≥20 hectares) 4. Housing development (≥50 hectares) 5. Construction of new township (≥100 hectares) 6. Construction of sewage treatment plant |
Project Preparation
Project PreparationProject scope (main output) | Phase 1: reclamation of Island B: size (1,400 acres); total reclamation (58 million m^3) Phase 2: reclamation of Island A: size (2,300 acres); total reclamation (93.8 million m^3) Phase 3: reclamation of Island C: size (800 acres); total reclamation (37.3 million m^3) |
Environmental impact | The project consists of multi-prescribed activities but the EIA report available only addresses land reclamation and dredging.
Negative impact on fish hatcheries and mudflats, with total loss of turtle breeding grounds in the affected area. The EIA reports possibility of sediment dispersion and reduced capability of water to flush pollutants. Mitigation measures recommended included proper disposal of waste from dredging activity, employing a silt curtain and building a bund to prevent sediment from escaping into surrounding waters. |
Land and settlement impact | Approximately 17.8km of shoreline will undergo dredging to create the access channels. Total of 4500 acres of sea will be reclaimed as 3 islands. Negative impact on local fishermen community who reside in the area, through shrinking fishing grounds and the need to go out further to fish, incurring higher fuel costs. |
Contact details | Paras 25, KOMTAR, 10503 Pulau Pinang Tel : +604-2621957 / +604-2642020 Faks : +604-2634940 Emel : webmaster@penang.gov.my |
Funding sources | In 2021, the Chief Minister Chow Kon Yeow said the state executive council agreed to implement reclamation works for Island A through a joint venture and no longer under the project delivery partner (PDP) model.He added that through the joint venture model, reclamation of the 920ha Island A at a cost of RM3.8 billion, would be fully funded by SRS Consortium.Island B and C funding not announced publicly yet. |
Project budget | RM 3.8 billion for Island A.
Island B and C funding not announced publicly yet. |
Project budget approval date | A agreement to implement reclamation works for Island A through a joint venture and no longer under the project delivery partner (PDP) model was made during a meeting with the Penang State Executive Council on the 24th March 2021. CM Chow Kon Yeow stated that supplementary agreements would be drawn up and signed to make it binding in the following weeks – no confirmed date. |
Tender Management
Tender ManagementProcuring entity | Penang State Government – but SRS Consortium is the Project Delivery Partner |
Procuring entity contact details | Paras 25, KOMTAR, 10503 Pulau Pinang Tel : +604-2621957 / +604-2642020 Faks : +604-2634940 Emel : webmaster@penang.gov.my |
Procurement process | Request For Proposal |
Contract type | Initially started as a Project Delivery Partner (PDP) model with SRS as the PDP, has since become a joint venture. |
Contract status (current) | Closed |
Number of firms tendering | 55 responses from local and international companies, 6 bidders (submission of proposals) |
Cost estimate | The information is unavailable at the time of the assessment. |
Contract administration entity | The information is unavailable at the time of the assessment. |
Contract title | The information is unavailable at the time of the assessment. |
Contract firm(s) | The information is unavailable at the time of the assessment. |
Contract price | The information is unavailable at the time of the assessment. |
Contract scope of work | The information is unavailable at the time of the assessment. |
Contract start date | The information is unavailable at the time of the assessment. |
Contract duration | The information is unavailable at the time of the assessment. |
Implementation
ImplementationVariation to contract price | In 2013, the Penang government approved a RM27 billion Penang Transport Master Plan (PTMP) to address the state’s transport and traffic problems. Two years later, the SRS Consortium proposed an amended PTMP which ballooned the costs to RM46 billion. No specific information on the variation to contract price of the PSI/ PSR project. |
Escalation of contract price | In 2013, the Penang government approved a RM27 billion Penang Transport Master Plan (PTMP) to address the state’s transport and traffic problems. Two years later, the SRS Consortium proposed an amended PTMP which ballooned the costs to RM46 billion. No specific information on the variation to contract price of the PSI/ PSR project. |
Variation to contract duration | Project is on hold – information unavailable at the time of assessment. |
Variation to contract scope | Project is on hold – information unavailable at the time of assessment. |
Reasons for price changes | Project is on hold – information unavailable at the time of assessment. |
Reasons for scope & duration changes | Project is on hold – information unavailable at the time of assessment. |
Project Completion
Project CompletionProject status (current) | Project is on hold – expected to begin 2nd half of 2022 |
Completion cost (projected) | RM 3.8 billion for Island A.
Island B and C funding not announced publicly yet. |
Completion date (projected) | Project is on hold – expected to be complete by 2030 |
Scope at completion | A new EIA has to be re-submitted due to the different scheduling of the island reclamation work to be done – the three proposed islands were previously not indicated in their state structure plan so they had to submit a judicial review. |
Reasons for project changes | Project is on hold – information unavailable at the time of assessment. |
Reference to audit and evaluation reports | Project is on hold – information unavailable at the time of assessment. |
