Detailed EIA for Seri Tanjung Pinang Phase 2 submitted


Look at the optimism about getting approval for this huge 760-acre land reclamation project, never mind that it is still at the EIA stage. This project is linked to the tunnel-land swap deal, as the developer is supposed to surrender land to the state government, which in turn is supposed to compensate the tunnel developer. So how not to approve Seri Tanjung Pinang Phase 2?

This is the problem with swap deals. Everything hinges upon the appropriate regulatory approvals being obtained, whereas these approvals are not supposed to be merely a formality. In this case, if for some reason the land reclamation is rejected for environmental reasons, how is the state going to find the land to compensate the tunnel developer?

Have the fisher folks’ concerns been addressed? What about the impact of possible siltation in surrounding areas? It is good that there is going to be a hydro-flow study, but this study must be undertaken by internationally acknowledged experts and they must be truly independent.

Meanwhile, work is reportedly set to start in the second half of 2014.

See this report from

Reclamation near Gurney Drive on track to start this year, says report
First Published: 7:01am, Jan 22, 2014
Last Updated: 7:05am, Jan 22, 2014

by Himanshu Bhatt

GEORGE TOWN (Jan 22): A planned gigantic 760-acre reclamation project off Sri Tanjung Pinang, near Gurney Drive, is on track to begin in the second half of this year.

The affirmation follows the submission of the crucial Detailed Environmental Impact Assessment (DEIA) for the project to the Department of Environment just last week, on Jan 13, for approval.

Touted to have a whopping gross development value of RM25 billion, this Sri Tanjung Pinang Phase 2 (STP2) would be one of the biggest single projects, in terms of size and monetary worth, in Malaysia.

According to a report by investment research firm AmResearch Sdn Bhd, reclamation works for STP2 undertaken by Eastern & Oriental Bhd (E&O) are still on track to begin in the second half of 2014, following the regulatory approval and tendering process.

In its company report on E&O released on Jan 16, it described the project as E&O’s “near-term catalyst” and said that the planned reclamation is “coming along well.”

It also cited “company visit” as the rationale for the report.

Revealing that the DEIA report has been submitted for approval, the report added: “The next hurdle for the crystallisation of STP2 is the regulatory approval of the DEIA before land reclamation can commence.”

“Looking at the timeline (including the 45 days public display of the DEIA report), management highlighted that the regulatory approval is likely to be granted in the second quarter of 2014,” the report said.

Avoiding environmental fiasco like Gurney Drive

When contacted, state executive councillor for the environment, Phee Boon Poh, told that the developer is required to come up with a study of the reclamation’s impact on the “total hydro-flow system” of the seas around Penang.

He pointed out that Gurney Drive, whose once-pristine shoreline is now full of mud, was badly affected by changing tides after the reclamation of the first phase, measuring 240 acres, was done a decade ago.

The state government wants to avoid such a situation from happening again elsewhere.

“We want a study of total hydro-flow system, which means it must cover effect on tides around the whole island and not just around that development area,” he said.

He added that the idea of building a wave-breaker at the northern section of the Penang Channel, to mitigate any adverse effect of the reclamation, has also been brought up.

The part of the channel is important as it is a key route for shipping for the Penang Port.

Reclamation linked to funding for tunnel

The plans for STP2 were unveiled during a public hearing on August 24 last year.

It was then announced that it would constitute 891 acres of total reclaimed land, including 20% set aside for government reserve.

It should be noted that the STP2 land reclamation is very much tied to the funding mechanism for the Penang government’s planned 6.5km undersea tunnel from Gurney Drive to Bagan Ajam in Butterworth.

E&O is required to surrender 110 acres to the Penang government after STP2 is reclaimed. This was revealed during the hearing.

This is very important because the state’s agreement with the tunnel developer, Consortium Zenith BUCG Sdn Bhd, includes allowing it a 30-year concession on the tunnel – and giving 110 acres of net land to the company.

Details of project in brief

Based on information given at the hearing, the STP2 area is targeted to have about 12,000 new homes, in addition to mixed-use commercial spaces – retail units, offices, tourism outlets and so on – occupying some 28.45 million sq ft.

A new kidney-shaped island measuring some 760 acres will emerge on the sea directly in front of Straits Quay.

The present Gurney Drive would be reclaimed by 131 acres, pushing the coast further out by about 80m to 100m from where it currently is.

The project is being undertaken by Tanjung Pinang Development Sdn Bhd in which the state government has a share.

The company is jointly owned by E&O Property (Penang) with a 78.8% stake, and the Penang government with 21.2%. E&O Property is a subsidiary of Eastern and Oriental Bhd (E&O).

The project obtained an approval-in principal from the Penang government in April 2011 for the proposed reclamation of 760 acres of the STP2.

Civic and environmental groups have expressed anxiety over the project’s impact on congestion and the environment in Penang.

About 470 fishermen – from Tanjung Tokong, Gurney Drive, Pantai Paramount and Bagan Jermal – are expected to be impacted by the project.

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2 Mar 2014 3.00am

Anil, ,STP not one acre for TgTokong residents. STP2 for sure nothing for them. You and I know who will benefit. Prior 2008 and after the same.

26 Jan 2014 10.48am

What about those Johor folks living in Kulai and Pontian who commute daily to Singapore to work? they have to tolerate the long queue at the causeway and both CIQs for immigration and custom clearance.

Therefore, more Penang folks may one day be living in bigger homes in SP or Kulim and commute to the island for work (& pleasure).

26 Jan 2014 12.38pm
Reply to  Fakri

Exactly Fakri, my mom’s friend, her grandson gets up at 4.30am to go over to SG land to study 5 days a week and he is only a primary school kid !!!

And Penang lan, groan and moan over almost every single petty issue.

Shame la !!!

25 Jan 2014 4.45pm

Penang kia are really a pampered lot, but not all though. I have a friend, he used to travel to Alor Star to work everyday from Pg.

My aunt in the US took 4 modes of transport everyday to work and she was at that time already in her mid 60s, but i didnt hear her complaint not even a word .

Travelling long distances to work are a norm in the west !

Kau peh kau bor is a norm for Penang kia !!!

OneKangkongMakaysia !!!

25 Jan 2014 11.23am

1000 PR1MA houses will be built in Sungai Petani according to NST report today.
Those who find Penang too expensive can start making enquiry for migration?

26 Jan 2014 7.20pm
Reply to  Anil Netto

If you cannot resist the temptation of spending from the shopping malls in Penang, then it is good to stay in outskirt towns away from the bright lights and money traps.

25 Jan 2014 12.19pm
Reply to  rick

Rick, you don`t have to look for Prima house in Sungai Petani. You can also find cheap houses there built by the private developers. Houses are cheap there because the houses built are based on current land prices unlike Penang where condo and houses are built based not on current land prices but INFLATED future land prices caused by the swap deals of the Tokong LGE & DAP govt.

25 Jan 2014 12.25pm
Reply to  Yang

Anil, One of my neighbor working in Kulim drive to work from Penang to Kulim everyday except holiday. Penang is our home and the arrogant tokong LGE is driving us out from this lovely island. We must put a stop to that ???

25 Jan 2014 8.45am

Swap deals stink sky-high just as Cosmopolitan Penang concept stinks swapping ordinary Penangites (to the mainland) for the rich & famous (from anywhere on earth) to fill up the costly bin chui spaces in Penang Island. Stinks like night soil as it stinks like the coming GST.
Swap deals from Komtar Tower running in desperation mode arm-twisted by richie & greedy developers. More development ‘at a cost’, more justification to drive a MercS300L (L for lansi-lanyong).

Coast-Mud-Politan Gurney Drive is still muddied without any ‘clean up’.
Still blaming with 308 frenzy on Ostrich Ah Koon? Blame game also stinks.

Batu Ferringhian
Batu Ferringhian
24 Jan 2014 7.54pm

YB Phee .. State Exco for Environmental issues..

Name me ONE thing he has done for Penang

24 Jan 2014 9.41pm


Lady Amelia
Lady Amelia
25 Jan 2014 8.25am

YB Phee usually takes note of welfare like Hari raya & CNY hampers to the needy old folks. May be Batu Feringghi folks considered asset (land) rich so no ang pow token given in the state welfare scheme ?

24 Jan 2014 7.49pm

Surrendering 110 acres of land and 30 years of tunnel concession,ahem what a deal. Meanwhile the tunnel and reclamation projects has not been approve but the Penang state government (may) make payment to Zenith by way of a piece of land 3.67 acres of freehold land. Where is this piece of land? And why the advance payment what happen if the deal fails to take off?

Michael Maguire
Michael Maguire
24 Jan 2014 5.52pm

Anil, like I mentioned recently, developers these days can build on water!

24 Jan 2014 4.12pm

Isn’t there a conflict of interest if the developer comes up with an environmental impact study? If they’re paying for it, they’d surely shop around until they found someone who could get them a favourable assessment. It’s like banks paying credit assessment agencies / auditors to assess them. In the end they just shop around for someone who’ll give them what they want.

Surely it should’ve been decided by the state government who does the INDEPENDENT assessment then have the developer foot the bill.

I’m not against the project but the principles don’t seem right.

Lady Amelia
Lady Amelia
25 Jan 2014 8.30am
Reply to  Islandjoe

Some of Penang condo reported being “”en-bloc” purchase by “property guru consortium”. They pre-purchase multiple units with partial down payment to get 25% off launch prices from the developers who may face cash flow concerns; and then offload them with 15% discounts to the “herd-mentality” public in a way earn net profit in the range of 5%-10% easily (some call this swapping deals).

So we are concerened the business “naive” Penang Gomen may be unaware they could be shortchanged in the long run not good for the general public ?

27 Jan 2014 9.47am
Reply to  Lady Amelia

“naive” Penang Gomen?
It’s all about ‘No Money, No Talk’ business at Komtar Tower of all seeing vantage point.
It’s about Cosmopolitan Penang Porfolio, a much less on the surface apparent cause of socio-economic engineering & social migration of classes.
It’s about politics + business mix-blood more than a social caring warm-blooded gomen.