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PICC – a re-run of the unhappy Pisa saga?

Accountability, Development issues, Malaysian finance/business 12 Responses »

Apr 212010

The Penang Island Municipal Council (MPPP) has reported a record suplus of RM49 million for 2009 (RM20 million in 2008). But instead of making available more financial resources for essential services and amenities, the MPPP may be forced to fritter away its funds on the RM50 million Penang International Convention Centre (PICC) project.

More concerns have been raised by various quarters over PICC. What will happen to the Penang International Sports Arena (Pisa) during the construction and building of the PICC? What will happen to both Pisa and PICC when Ivory and IJM builds their own better convention centres? How does Penang plan to bring participants for events at PICC when only limited international flights come into Penang? Why would event managers want to come to PICC when KL, Bangkok and Singapore have better convention centres? What is the point of building an unattractive PICC without ancillary services at such a small location?

Can the Penang govt direct MPPP to build PICC?

Accountability, Democracy, Development issues 45 Responses »

Jan 012010

Can the Penang state government direct the Penang Municipal Council (MPPP) to implement the proposed Penang International Convention Centre?

On 30 November 2009, in response to an oral question in the Penang State Assembly by Pantai Jerejak member Sim Tze Tzin (PKR), Chow Kon Yeow, responding on behalf of the Chief Minister, replied that “in line with a state government directive, the MPPP had been directed to implement the construction of a convention centre at a site determined by the state government, that is, at the Penang International Sports Arena (Pisa) in Relau, Penang”.

He added that the proposal was in the planning stage, and the MPPP would decide if a traffic impact assessment was needed once it received a detailed proposal.

Is it within the power of the state government to issue such a directive to the MPPP?

RM50m ‘white elephant’ in the making?

Accountability 30 Responses »

Oct 272009

For the coming financial year (2010), the Penang Municipal Council is projecting a budget deficit of RM40 million based on revenue collection of RM230 million, two thirds of which come from taxes. Over the last year, the council should be commended for making extra effort to collect arrears from various parties…

It is therefore strange that the Council plans to blow RM30 million in capital expenditure in its 2010 Budget on a new convention centre project. This centre will be located within the premises of the Penang International Sports Arena (Pisa) at a spot where the present fountains are. It is believed that a further RM20 million will be allocated in the 2011 financial year.

Now, Pisa as everyone knows is an under-utilised white elephant, saddled with expenditure – hardly the most productive asset in Penang. So where is the logic in building another convention centre next to it? And how is it going to affect the already ailing Pisa, which is owned by the Council and managed by a private firm, Penevents (formerly owned by the PDC until a management buyout)?