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S P Setia awarded RM300m PICC job

Latest: It has been announced late this morning that the PICC project has been awarded to Eco Meridean Sdn Bhd, a subsidiary of S P Setia Bhd, and the project will now be dubbed ‘Subterranean Penang International Convention and Exhibition (sPICE) Centre’. The work, which involves upgrading the existing Pisa facilities as well, will reportedly cost “at least” RM300 million (or more?) using a Build-Operate-Transfer model.

According to my source, the tender proposal had expected the state to provide RM50 million in funding. But we now hear that that the burden of coughing up these funds will fall on MPPP (i.e. Penang rate-payers), which is already hard-pressed for funds to upgrade basic public amenities such as public markets and pavements. Has the RM50 million expenditure been approved in a full council meeting of the MPPP? Was it even on the agenda of the last full council meeting of the MPPP? Who is really running the MPPP?

If this RM300 million project, which will take three years to complete, is really feasible, the state government should show us the projections. S P Setia may be able to deliver the convention centre but can it guarantee that it generates operational profits? If not, who will absorb the operational losses and for how long? Realistically, how much can MPPP expect as returns for its RM50 million outlay and when? What about the hidden costs and opportunity costs that may not be reflected in the RM300 million, especially the cost for the use of the MPPP’s land and interest lost by the MPPP on the RM50 million? How much is S P Setia going to pay MPPP for building on council land? Why should Penang rate-payers subsidise this project? Questions, questions… but will we get real answers?

My report early this morning before the official announcement:

S P Setia Bhd has been selected for the job of the Penang International Convention Centre, the cost of which has ballooned from initial estimates of around RM50 milllion bandied about earlier to some RM250 million RM300 million now.

According to a source, negotiations are underway on the terms based on what S P Setia wants from the state government and the MPPP. It is believed the state government was asked to provide RM50 million to help fund the project. I don’t think this is the best way for the state to spend its limited financial resources.

The design for the PICC, to be constructed underground, is believed to include a roof-top garden, a hotel and a retail section. The MPPP has requested a traffic dispersal study. It is not known if a socio-environmental impact study will be commissioned.

Pulau Jerejak scandal; land reclamation

Almost all the useable land on Pulau Jerejak near Penang Island was sold to a resort, majority owned by the federal government’s UDA Holdings Bhd. And Penang has incurred a RM19 million RM30 million loss on the deal.

The Tropical Island Resort, which manages Pulau Jerejak, is a 51:49 joint-venture between UDA and the Penang Development Corporation. How could PDC (and by extension, Penang) end up with only a minority share when the island is part of Penang? UDA, for its part, was delisted from the stock exchange in 2007 and is now a wholly owned subsidiary of the Finance Ministry’s Khazanah.

PDC has incurred investment expenditure and debt of RM19 million. Another RM11 million in land premium has not yet been paid to the Penang Land Administrator. Shockingly, even though the land premium has not yet been paid in full, the title deed was still issued by the previous administration, said Chief Minister Guan Eng. If that’s the case, the resort must settle what it owes to the PDC and the Penang state government, which in turn must seek legal advice to protect Penang’s interest.

Live – Monster flood swamps Brisbane

Three quarters of flood-hit Queensland is now a disaster zone and Brisbane is now deluged after extraordinarily heavy rain forced the Wivenhoe Dam to release excess water.

The Brisbane river level rose to just over 4 metres at 2.00pm and is expected to peak at 5.5 metres at 2.00am Malaysian time, 4.00am Brisbane time tomorrow and that peak level is expected to remain for 12-18 hours. (In the event, the peak level turned out to be a metre lower.) The city has been locked down. A contact in Brisbane tells me: “Brisbane city itself is sadly under. All along the Brisbane River is under. … the city cat (catamaran) boats… are all off the river as debris of trees, broken pontoons, wood, boats, parts of houses etc are floating rapidly down the river. The worse is yet to come as high tide is 4.00 am tomorrow morning and the river is expected to rise…”

Ironically, the biggest problem for Brisbane over the last 12-15 years has been drought. This looks like climate change to me.

Live reactions:

Live video of Brisbane River below from a webcam looking from Milton above Coronation Drive across the river to Riverside Drive at West End:

More live streaming here:

What is the reason for the flooding? The Wivenhoe Dam was only built to hold back 1.5 million litres of water from the catchment area, but now 2.5 million litres of water is coming through after extraordinarily heavy rainfall.

Air Asia plane skids off runway

An Air Asia plane carrying 130 passengers and crew skidded off the runway as it landed at Kuching Airport in heavy rain last night.

Four passengers were believed to be unwell or suffered minor injuries.

The accident happened when Flight AK5218 from KL landed on runway 25 at 10.02pm. A passenger said the plane veered sharply to the left and right after it touched down and then skidded off the runway onto soft ground.

The question is, is drainage at the airport a problem – or was it something else?

When even the dead are evicted

The century-old family cemetery of Penang’s first ‘Kapitan Cina’ Koh Lay Huan in Batu Lanchang has been dug up to make way for a property development project in a move that has alarmed heritage enthusiasts.

The plot is behind the Lintang Gangsa Apartment (next to the market) off Green Lane (lot number 1560, section 5, DTL. The housing project, reportedly undertaken by developer Kemuning Setia Sdn Bhd covers 11.5 acres of the 27-acre site, was approved by the MPPP in December 2009.

Read Wikipedia here to find out more about Koh Lay Huan, who was appointed by Francis Light as the the first Kapitan Cina of Penang in 1787. One of Koh’s sons even accompanied Stamford Raffles to Singapore in 1819.

Among those buried in the cemetery is Koh’s grandson, Koh Seang Tatt, who died in 1899.

According to an NST report:

Prior to 1880, Balik Pulau was under the jurisdiction of an adviser to the British colonial government, Koh Seang Tatt, a local magnate who took up law studies in England.

Mr and Mrs Taib Mahmud

The much talked about Sarawak Chief Minister Taib Mahmud and his new wife (or wife-to-be… whatever) just days before a crackdown on activists in the state ahead of what promises to be keenly contested state elections in March.

Mr and Mrs Taib Mahmud attending a wedding in Subang Jaya on Saturday - photo in Borneo Post

Image and report in The Borneo Post here.

Dog-owners must read early signs

In the light of the horrific killing of an Irish tourist by dogs in Penang, it is time for dog owners to educate themselves on way to detect and control aggression in their pets.

An experienced vet told me today that tying up dogs or putting them in cages for prolonged periods may contribute to aggression. He said from the photo of the dog in the press today, it did not appear to be an ordinary mongrel, but a mixed-breed: “It looks almost three quarters like a pit bull,” a breed known for its ferocity. He didn’t think the aggression had anything to do with the dogs’ diet whether meat or dog biscuits. Having himself encountered fierce canines during his various visits to farms, the vet said such aggressive dogs should not be allowed to roam freely and pose a threat in public areas; instead they may be let loose in fenced up private premises. Licensing and regulation would come under the jurisdiction of the MPPP, he added.

There are various types of dog aggression according to a buzz.com article ‘What makes dogs aggressive’:

The dominance aggression is about the dog’s social status being challenged or his control of a situation being questioned. Dogs just like humans are social beings. They think of their families as their group or pack. Within this pack there is a dominance hierarchy that is always established. Unfortunately, if your dog thinks his rank is higher than yours then there will situations that he will challenge you. Since most people don’t have a basic understanding of how canines communicate, unknowingly you may challenge your dog’s social position. Any physical restraint on the dog’s part can be viewed as a challenge for dominance although he can be friendly when not threatened nor challenge. This type of aggression can be directed at anyone or any animal.

Kua Kia Soong on defence spending

Thought-provoking interview over BFM Radio with Kua Kia Soong, author of the book Questioning Arms Spending and former MP of Petaling Jaya.

He questions the need for large amounts of defence spending in the region and the way defence contracts are awarded out.

In fact, Jane’s ‘Intelligence and Insight’ on the Malaysian defence budget reports: “It could be argued that Malaysia is involved in somewhat of a regional arms race that has its basis more firmly in nationalist sentiment than genuine military threat. This mini-arms race may have distorted the purchasing plans of the Malaysian military.”

US proposes cut in water fluoride level

The US Department of Health and Human Services and the US Environmental Protection Agency have proposed that the fluoride level in drinking water be reduced to prevent dental fluorosis, a form of tooth decay.

But there has been no mention of the other “more serious (non-dental) health concerns” about fluoride ingestion, noted the international campaign group Fluoride Action Network. The Network added that “the chemicals used to fluoridate drinking water in the US are hazardous waste byproducts of the phosphate fertiliser industry”.

The proposed cut bucks a trend of promoting fluoride that began in the 1940s. The Health and Human Services Dept has now proposed cutting the level to 0.7 milligrams per litre of water, from the current standard of 0.7 – 1.2 mg/litre, according to an AP report. The American Dental Association has welcomed the move, reports the AOL Health website.

Last year, a research paper published in the the Research Journal of Medical Sciences, found on the Medwell Journals website, stated that the national standard for fluoride level in Malaysian water is 0.5 – 0.9 mg/litre.

‘Store Wars’: Organic vs GM food

Watch Cuke lead the organic rebellion to free Princess Lettuce from the clutches of the evil Darth (GM) Potato.

May the (organic) Farm be with you!