Penang opens tender for Batu Kawan industrial park that was embroiled in controversy last year

GEORGE TOWN, Feb 15 — Penang Development Corporation (PDC) has called for a request for proposal (RFP) for the Batu Kawan Industrial Park 2 (BKIP2) land that was embroiled in a controversial land deal last year.

Penang Chief Minister Chow Kon Yeow said the RFP is for phase one of BKIP2 covering about 226.47ha (559.64 acres).

“The RFP is to invite industry players to be a strategic partner in developing phase one of BKIP2 with PDC,” he said during a press conference at his office in Komtar today.

He said a pre-qualification request for the RFP was advertised from February 8 and the tender will continue to be advertised in mainstream media and PDC’s website for six weeks until March 21.

He said PDC will be directly involved in the development of BKIP2 by ensuring the development plans are in line with the state’s policies and in accordance with a set schedule.

Controversy surrounding BKIP2 arose in October last year after the Penang Chinese Chamber of Commerce (PCCC) questioned the lack of a call for open tender for the project located in South Seberang Perai.

Chow, at that time, said the project was awarded to UMECH Construction Sdn Bhd as a collaborative partner with PDC as a result of business matching at the EXPO Dubai 2020.

Due to the controversy over the awarding of the project to UMECH, the land deal was subsequently cancelled.

Today, Chow said the RFP is for the same piece of land that was previously awarded to UMECH.

“It is the same size of about 500 acres, for phase one,” he said.

Meanwhile, still on the matters of industrial lands, he said PDC is now developing three new industrial parks at a cost of RM3.2 billion.

The three industrial parks are Bandar Cassia Technology Park (BCTP) covering 154ha (382acres), Batu Kawan Industrial Park 3 (BKIP3) covering 251ha (622acres) and South Penang Science Park (SPSP) covering 70ha (174acres).

“Development of the industrial parks, located in South Seberang Perai, started in 2022 and are expected to fully complete in 2031,” he said.

He said Prime Minister Datuk Seri Anwar Ibrahim is expected to officiate the ground-breaking ceremony for BKIP3 tomorrow.

He said PDC will continue to seek lands to be developed into industrial lands.

“Over the past 54 years, PDC has successfully developed nine industrial parks covering about 2,468ha (6,100 acres) including Bayan Lepas Industrial Park, Seberang Jaya Industrial Park, Perai Industrial Park, Bukit Minyak Industrial Park, Penang Science Park and Batu Kawan Industrial Park.

He said about 350 multinational companies have invested in the industrial parks developed by PDC.