THE Penang government and developer Rayston Consortium (Butterworth) Sdn Bhd have signed a supplementary agreement to reclaim land off Bagan Ajam, Butterworth.

Chief Minister Chow Kon Yeow said the reclamation is to create a waterfront for the area, located north of Penang Port.

He said the project will have an impact on northern Seberang Prai and Butterworth.

“Bagan Ajam is also where the proposed undersea tunnel to the island will be built. The impact will be big. Logistics, transport and accessibility will be improved,” he told reporters at Komtar today.

Under the supplementary deal, Rayston – the company that handled the relocation of squatters affected by the long-completed Butterworth Outer Ring Road (BORR) project – will surrender 90.31ha, or 35% net saleable area, of the reclaimed land to the state government.

The size of the tract to be given to the state under the new deal is 77.41ha more than what the state government was entitled to under the original 1999 agreement, which was only 12.9ha.

Penang Secretary Farizan Darus said Rayston will have to deliver the land to the state within six years of the commencement of work.

He said the state government will likely use the land for housing.

Under the 1999 deal, Rayston would reclaim 650ha, and of that, 2.5ha would be given to the state for low-cost housing and 7.5ha in exchange for the state government’s allocation of two plots in Butterworth for the relocation of squatters affected by the BORR project.

“We will determine the kind of development for the land. It has to match what the developer is planning to do,” said Farizan.

“But it will likely be housing, as intended by the state government years ago.”

The supplementary deal also includes an amendment to the Land Reclamation Plan clause, to ensure Rayston submits its plans, planning permission, environmental impact assessment report and other required documents, so as to proceed and complete the project within the agreed time frame.

Rayston director Ronnie Lim said the reclamation is estimated to cost RM2 billion.

“What we plan to develop on the land is subject to further discussions with the state government. It will likely be a mixed development.”

Apart from the land to be surrendered to the state and kept for Rayston’s future development, 245ha will go to Penang Port.

The state is undertaking and planning several reclamation projects.

Apart from the Rayston project on the mainland, the island is already seeing reclamation work carried out off Persiaran Gurney for the Sri Tanjung Pinang II project. The Sri Tanjung Pinang I reclamation off Tanjung Tokong was completed years ago.

There is also the Light Waterfront project next to the Tun Dr Lim Chong Eu Expressway, also on reclaimed land.

More controversial is the proposed Penang South Reclamation off the southern coast of the island. The project is meant to finance the state’s ambitious Penang Transport Master Plan. – September 28, 2018.