GEORGE TOWN, Nov 12 — A Barisan Nasional (BN) assemblyman accused the Penang state government today of selling off 163 acres of reclaimed land meant for industrial use and infrastructure for private development instead.

Responding to accusations by Penang Chief Minister Lim Guan Eng that the previous BN administration had approved a total of 3,241 acres to be used for land reclamation projects, Pulau Betong assemblyman Muhammad Farid Saad claimed that Lim’s administration sold off some of the reclaimed land for other developments.

“Penang Development Corporation (PDC) had reclaimed 1,120 acres of land spanning from the first Penang Bridge to Batu Maung to cater for infrastructure development of a 9.7km Bayan Lepas Expressway and industrial land, but the chief minister had conveniently sold a parcel of this reclaimed land totalling 103 acres to Ivory Bhd for RM1.02 billion,” Muhammad Farid said in a statement issued today.

He said the 103 acres is now the site for Penang World City, a joint-venture between Ivory and Tropicana Bhd to develop the land with a gross development value of RM10 billion.

As for the other 60 acres, Muhammad Farid claimed that the state had given part of the reclaimed 980 acres by E&O Bhd as part payment to Zenith-BUCG.

The 60 acres was part of a 110-acre land swap deal with Zenith-BUCG in exchange for an undersea tunnel project, he said.

“E&O Bhd was given the right to reclaim the 980 acres of land as part of a rescue project of an abandoned reclamation project awarded in the 1980s,” Muhammad Farid said.

He added that the approval was given to E&O with a requirement for the developer to build low-medium cost houses totalling 1,989 units and to be sold at RM72,000 per unit.

“A total of 113 acres of the reclaimed land by E&O must be surrendered to the state government for infrastructure projects, but the current state government had used 60 acres from that for the land swap,” he said.

The Pulau Betong assemblyman stressed that all reclamation projects approved by the BN administration were planned with far-sightedness to cater for the social and economic needs of the state and the people.

He pointed at the 274.9 acres of reclamation project approved for IJM Bhd as one of the examples.

“IJM was given the rights to reclaim the land in exchange for a toll free 4.7km six carriageway Tun Dr Lim Chong Eu Expressway with five interchanges,” he said.

In addition to that, IJM was required to build 5,500 units of low and low medium cost houses to be sold at RM42,000 and RM72,000 per unit, besides allocating sites for schools, places of worship, a hawker centre, public promenade and other government facilities.

“The chief minister has conveniently or purposely chosen to omit this fact when he pushed the blame to the previous administration,” he said.

As for the approval for Rayston Group Bhd to reclaim 1,581 acres of land, it was in exchange for the construction of the Butterworth Outer Ring Road through Lingkaran Luar Butterworth Sdn Bhd.

“Out of that, 593 acres are to be used for the expansion of North Butterworth Container Terminal, 296 acres for buffer zone as future needs of port related activities, 197 acres for open spaces and infrastructure projects which must be surrendered to the state and local government, and the remaining 494 acres to be developed by the concessionaire,” he said.

Muhammad Farid claimed the company has yet to exercise their rights.

“We don’t understand why the chief minister has not vigorously pursued this project because expansion of our port will certainly benefit the state and the people tremendously,” he said.

In an immediate response to his statement, Lim said only 35 acres out of the 103 acres for Penang World City are reclaimed land, while the balance is existing land.

“The land was originally meant for residential development, not industrial as he claimed, so they are again attacking us based on slander and lies,” he said.

As for Muhammad Farid’s other accusations, Lim said he would read the statement first before replying in full.