PDC cancels controversial state-owned Byram land sale
According to a statement by the PDC today, this occurred after a substantive change in the equity structure of Umech Land Sdn Bhd.
“This is to the extent that there is a change in...
The Penang Development Corporation (PDC) has announced the cancellation of the controversial sale of state-owned land in Byram, South Seberang Perai.
According to a statement by the PDC today, this occurred after a substantive change in the equity structure of Umech Land Sdn Bhd.
“This is to the extent that there is a change in the party controlling and leading the project without notifying and obtaining the PDC’s official approval.
“Therefore, the PDC Board decided to terminate the joint venture agreement with Umech Land Sdn Bhd by giving three months’ notice based on clause 19 of the PDC - Umech Land Sdn Bhd Enterprise Agreement,” said the PDC.
It also announced that following the termination of the contract, it will be advertised widely by using various mass media channels through a Request For Proposal (RFP) for a proposed collaboration with PDC to develop the Byram Industrial Park Project.
“This RFP will be advertised by PDC in the near future to attract interested investors,” said the PDC.
The PDC said its board found that the initial selection process of Umech including the determination of cash contributions and payment schedule to PDC was transparent and in line with PDC policy.
It also concluded that the collaboration was reasonable and had a positive impact on PDC’s cash flow including from commercial aspects, and benefits to the development of Penang.
Earlier this month, Penang Chief Minister Chow Kon Yeow defended the direct negotiation between PDC and Umech after the Penang Chinese Chamber of Commerce questioned the tender process and why local companies were purportedly not given the opportunity to participate in the process.
“PDC presented the Byram Industrial Park Project proposal at Expo Dubai 2020 to attract potential investors, considering the challenges faced by this area including its proximity to the Pulau Burung landfill site, garbage truck routes, high infrastructure preparation costs, and more.
“These challenges made it extremely difficult to attract investors,” Chow said at the time.
