GEORGE TOWN, Dec 25 — The management of the Pulau Burung Landfill Phase 3 project, previously under PLB Terang Sdn Bhd, has been transferred to the Penang government following a settlement agreement signed on December 18, according to a state executive councillor.

Penang local government, town and country planning committee chairman H’ng Mooi Lye said under the agreement, the company would receive RM35 million for transferring full rights and ownership of the facilities on the site to the Seberang Perai City Council (MBSP) and the Penang City Council (MBPP).

"PLB Terang Sdn Bhd was appointed to develop and manage the landfill, including a Material Recovery Facility (MRF), for a 20-year period from July 15, 2012, to July 14, 2032.

"In July 2022, the state government reviewed the progress of the project and discovered numerous non-compliances and delays on the company’s part in developing the project,” he said in a statement tonight.

He added that due to the company’s unsatisfactory performance, the state government decided to terminate its services on August 1, 2022, and the operation of the site was subsequently handed over to the local authorities (PBTs).

Elaborating, H’ng said that following the termination of the agreement and considering the work completed on the site as well as the terms of the concession agreement, the state government, through the two PBTs, had entered into a mediation process with the company to finalise the terms of the transfer of the completed facility.

He stated that all parties had agreed on a value of RM35 million for the transfer of the entire rights and ownership of the facilities on the site to both PBTs. Therefore, a settlement agreement was signed on December 18, and payments would be made in stages from 2025 to 2027.

"I would like to emphasise that the payment was made based on the agreement of both parties to transfer the rights and ownership of the facilities on the site to both PBTs and not as compensation to Syarikat PLB Terang Sdn Bhd,” he said. — Bernama