GEORGE TOWN, Aug 10 — The Penang state government has granted PLB Engineering Berhad (PLBE) an extension of time (EOT) until October 18 for its proposed RM1 billion Jelutong landfill rehabilitation and development project.

State Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye said the developer’s application for an extension was presented to the state executive council on August 5.

“Based on the presentation, the state government decided that an extension of time be granted until October 18, 2026,” he said in a statement today.

The project involves the proposed safe closure of the Jelutong landfill, the provision of a new site for the disposal of construction waste and marine clay, as well as development of the rehabilitated site.

H’ng said the extension was granted to allow PLBE to complete the remaining processes and fulfil conditions and requirements imposed by the relevant technical agencies.

He said the decision also took into account the agreed project plans and the interests and requirements of all parties involved.

“The state government will continue to closely monitor the implementation of this project to ensure that all conditions and obligations are fully complied with by the developer in accordance with technical and legal requirements and in the public interest,” he said.

The latest extension comes amid scrutiny over the proposed rehabilitation of the landfill and reclamation off Karpal Singh Drive, including questions over the project’s environmental impact assessment (EIA).

In June, Penang Chief Minister Chow Kon Yeow said the state government had met with the Department of Environment (DoE) to better understand the considerations surrounding the EIA application for the project.

At the time, Chow said the DoE had accepted another EIA application from the developer and stressed that the state needed to go through the proper process before reaching a decision.

Non-governmental organisation Protect Karpal Singh Drive Action Committee, had previously questioned whether the developer under the Jelutong Landfill Joint Development Agreement was receiving “exceptional accommodations”.

The group had raised concerns over repeated extensions of time, revisions to payment structures and the scale of the proposed coastal reclamation.

It also questioned whether the financial restructuring and continued extensions were justified in light of previous EIA rejections and delays in the commencement of the project.