THE federal government has not approved the Penang South Reclamation (PSR) proposal, which would serve as the funding model for the state’s ambitious transportation plan, Federal Territories Minister Khalid Samad said today.

The National Physical Planning Council, which met yesterday and heard the PSR proposal, has yet to approve or agree, Khalid said.

“The council advised the Penang government with 18 recommendations, as well as comments and additional recommendations from various ministries,” he said in a statement today.

The ministries involved are Water, Land and Natural Resources; Rural Development; Agriculture and Agro-based Industries; Transport, Economics Affairs; and Housing and Local Government.

Khalid did not spell out the 18 recommendations, but said Penang was also advised to consult the local community and people affected by the reclamation project to ensure all their needs are given due attention.

The PSR project also needs to get its environmental and social impact assessments approved by the relevant agencies.

“As this is a master plan, it will have to be presented to the NPPC for advice again,” he said.

The PSR project is crucial to the state as it serves as the funding model of the multibillion ringgit Penang Transport Master Plan, which aims to fix the state’s worsening traffic woes through a mix of new highways and public transport.

Yesterday, after the NPPC meeting, Penang Chief Minister Chow Kon Yeow said the council agreed to PSR’s implementation with 18 recommendations without disclosing them.

“Penang will comply with the advices by the council and comments by relevant technical departments when we implement this project in accordance with Section 2A(2)(b) of the Town and Country Planning Act 1976,” Chow said.

He is expected to address this issue at a press conference at noon today.

Under the PSR, three islands measuring a total 1,821ha off the southern coast of Penang island will be reclaimed. The land will be auctioned off to generate funds to finance the PTMP components.

The reclaimed islands will also provide Penang with additional land for future development like housing and industry, and even the future expansion of the Penang International Airport.

One of the islands will also be linked to Penang island via PTMP’s proposed light rail transit (LRT) project. – April 18, 2019.