The approvals from the federal authorities for the RM8.4bil Bayan Lepas light rail transit (LRT) and the massive Penang South Reclamation (PSR) scheme on the southern coast of the island are expected to be obtained before the end of the year.
Sources told The Star that the approvals would be from the Department of Environment, the federal regulator overseeing Environmental Impact Assessment (EIA), and the Transport Ministry.
The sources said if everything goes on as scheduled, the reclamation project for the three man-made islands would start early next year.
“The LRT project might begin in January 2020,” they said.
The LRT, together with a monorail, cable cars and water taxis, is part of the state government’s RM46bil Penang Transport Master Plan (PTMP).
It will begin from Komtar in the northeast corner of the island and pass through Jelutong, Gelugor, Bayan Lepas and Penang International Airport before ending at the proposed PSR development comprising three man-made islands totalling 1,800ha near Teluk Kumbar.
It is expected to provide a fast route to the airport and will traverse densely populated residential, commercial and industrial areas.
There are 27 LRT stations along the alignment, with the maintenance depot located on the first island that is to be reclaimed on the island’s south coast.
The alignment also factors in interchanges with future LRT, Sky Cab and monorail lines that are being planned, including one that will cross the channel to connect Gelugor on the island with the Penang Sentral transport hub in mainland Butterworth. The success of the PTMP depends on funding from property development on the PSR scheme.
The Pan Island Link (PIL) 1 is another component which came to light recently as its Detailed EIA was on display at 10 locations in Putrajaya, Kuala Lumpur and Penang until yesterday.
The proposed 19.5km highway links Gurney Drive to the Penang International Airport.
SRS Consortium Sdn Bhd, the Project Delivery Partner (PDP), will call for the tender of the LRT and PSR via a Request for Proposal (RFP) exercise early next year, the sources said.
SRS’s role is to supervise the projects until their completion and scale down the cost.
It is learnt that there are currently six or seven companies interested in carrying out the LRT project and the reclamation work for the islands.
“SRS will scale down the cost of the urban rail transport link connecting Komtar and Bayan Lepas, and also consider alternative proposals such as a monorail,” said sources.
It is learnt that Scomi Engineering has recently proposed a monorail project costing about RM6bil, to the state government.
A China company has also proposed to build a LRT link costing less than RM6bil.
On the three man-made islands, it is said that more than RM4bil would be spent on the reclamation.
“The cost is estimated to be over RM4bil because there will be a need to construct a dam and three power plants for the islands.
“One of the islands will be used for industrial activities. There will be industrial lots developed for sale to overseas and local investors to generate funds for the urban rail transport link.
“The other two islands will be used for building commercial and residential properties,” sources explained, adding that about RM17bil, which includes the cost for the LRT and PIL 1, has been approved.
On the viability of trams as an alternative to LRT, the sources said the move would require relocating underground sewage infrastructure, power and telecommunications cables.
“They have to be relocated because laying the rails for trams involves a lot of costly road digging. The LRT is constructed on an elevated platform and does not involve digging into the ground.
“Furthermore, the roads in Penang are narrow, so using trams with other vehicles on the same road could cause accidents,” a source added.
SRS Consortium, a 60:20:20 joint venture involving Gamuda Bhd, Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd, was appointed by the Penang government as the PDP for the implementation of the PTMP.
Meanwhile, Chief Minister Chow Kon Yeow said he has written a letter to Prime Minister Tun Dr Mahathir Mohamad on June 29 to seek funds for the LRT project.
“We have yet to receive a reply.
“If the South island reclamation projects are not carried out, the state has no choice but to seek federal funds for the LRT,” he said during his speech at the state assembly yesterday.
Chow had earlier said the major components of PTMP would be fully funded by revenues generated from the sale of reclaimed land of the PSR project.
He said the fully funded nature of the components – the LRT and the PIL 1 – was unlike any other mega infrastructure projects currently being critically reviewed by the Council of Eminent Persons.
The SRS Consortium was concluded to have the best overall proposal among six local and international bidders, which were evaluated based on qualities such as transport master plan proposal, delivery track record, financial standing and funding/business models.