Penang Chief Minister Chow Kon Yeow confirmed on the state meeting that the state authorities has formally terminated its concession settlement with Rayston Consortium (Butterworth) Sdn Bhd (RCSB) for the Bagan Ajam–Bagan Luar shoreline reclamation venture. The choice was made after the corporate didn’t show the feasibility of the proposed reclamation works. The state will reopen the venture for brand new proposals from different events.
In accordance with Chow, the Penang authorities first signed a concession settlement with RCSB on 16 June 1999 for the development and administration of the Butterworth Outer Ring Street (BORR). Below a supplementary settlement dated 23 Could 2022, RCSB was granted the correct to develop 582 hectares of reclaimed land.
Main Challenges Acknowledged by Developer
Chow acknowledged that following a collection of technical and coordination conferences, RCSB acknowledged going through important challenges that prevented the venture from progressing as deliberate. These included:
A considerable improve in reclamation prices
The necessity to shift the reclamation footprint northwards as a result of growth of Penang Port
Restrictions arising from the airspace and top limits associated to the close by Royal Malaysian Air Power (TUDM) base
These elements collectively undermined the venture’s viability underneath the unique plan.
Concession Led to Could 2025, No Development Had Begun
“Because the developer was unable to show that it had the aptitude and feasibility to finish the venture, the state authorities has determined to not lengthen the concession. The settlement has formally terminated on 31 Could 2025,” Chow stated.
Chow emphasised that the choice displays the state’s dedication to making sure growth that’s pragmatic, sustainable, and helpful to the general public. He added that the complexity of the venture exceeded the developer’s preliminary assessments, and pushing forward might have disrupted coastal growth alongside Butterworth’s shoreline.
Wanting forward, Chow stated the state stays open to receiving new proposals or planning functions from corporations eager about endeavor the Bagan Ajam–Bagan Luar reclamation venture.
