Prime Minister Anwar Ibrahim has announced that the Penang South Islands reclamation project will be reviewed and reduced in size.
As the reclamation project was to finance the state’s LRT project with land from the reclaimed islands to be sold, Anwar today said the federal government will add funds to a special scheme for Penang to implement the LRT project soon.
“I have looked at details of controversies surrounding this reclamation project with other cabinet ministers and I take this opportunity to resolve the problem by announcing that the project will be reviewed, its scope will be reduced.
“The federal government will add more funds into a large scheme that will allow the Penang state government to implement the LRT project,” said Anwar in his speech at the Malaysia Madani Hari Raya open house held at the UiTM Permatang Pauh campus.
He noted that traffic congestion in Penang has worsened and the state government had previously requested allocations from the federal government for its LRT project.
Following his announcement, Anwar, who is also the finance minister, said the federal government will meet with the Penang government in one or two weeks to discuss the funding method.
Noting concerns by local fisherfolk, environmental groups, and NGOs, he assured that the federal and state governments have taken measures to assist those affected by the reclamation.
After the open house event, at a joint press conference with Penang Chief Minister Chow Kon Yeow, Transport Minister Anthony Loke confirmed that the LRT project will be funded by the federal government.
He said Putrajaya will also determine the final financing method for the LRT project. Previously, it was reported the project could cost RM10 billion.
Yesterday, Consumers Association of Penang president Mohideen Abdul Kader appealed to Anwar to scrap the reclamation project, citing a risk of “irreversible damage” to the environment and fishing community.
Mohideen also said the project contradicts the government’s Madani policy framework, which promotes sustainable development.
The PSI project will cover 1,821ha off the southern coast of Penang Island between Permatang Damar Laut and Gertak Sanggul. - Mkini
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