PENANG Chief Minister Lim Guan Eng has defended the state government’s stance in not caling for an open tender for the 2.58ha state government land on Lebuhraya Peel, which is to be developed for the RM2 billion Penang Island Hospital expansion project.

Guan Eng said there was no need for an open tender as the project was similar to a foreign investment.

“The offer comes from a reputable hospital, so we treat it like any investment. The money injected into this project is from overseas.

“We treat it like a multinational coming to invest and set up shop…it is like when Intel comes, you don’t ask Intel to take part in an open tender to buy land for its factory site,” he said.

The land, which belonged to Chief Minister Incorporated (CMI), has been leased to the hospital for 99 years at RM156 million to implement the expansion project.

Guan Eng said a RM30 million deposit had been paid for the land, and the hospital had three months to pay the rest of the money after securing all required approvals for the project.

“It takes two years for them to secure the license from the Health Ministry. Then the total amount must be paid in three months,” he said.

Recently, questions on the Lebuhraya Peel land status was raised by the civil group Citizens Awareness Chant Group.

Guan Eng said the state government also could not announce the land status on its own without the investors and there was also a non-disclosure agreement to respect.

“The announcement has to come from the investors when they are ready. The investor is also a listed entity.

“If we make announcements for political reasons, we would be losing investors. You have to show you mean business by staying out of business,” he said.

Guan Eng said he hoped the media would regard the project positively, considering the benefits it would bring Penang.

He described the project as a “turbocharge” for Penang, which is establishing itself as a medical city, and a huge endorsement for the state at a time of economic uncertainty.

When the expansion is completed in five years, Island Hospital will become one of the largest private hospitals in Malaysia with advanced medical facilities.

The plan, which will see the 300-bed Island Hospital grow into a 1,000-bed medical facility, is expected to have an economic spillover of RM7 billion, said hospital board member Benny Lim.

He said it would be a first-of-its kind medical hub in the country with the facility focusing on medical tourism, which is big business in Penang and Malaysia.

“Locals will also benefit as the project will create over 2,000 jobs. We will also draw Malaysian specialists to come home to practise.

“We are already talking with some of them who are in countries like Singapore and Australia,” he told a press conference in Guan Eng’s office at Komtar today. – May 17, 2017.