GEORGE TOWN, Nov 8 — The project to expand and upgrade Island Hospital in Jalan Peel here may have to be abandoned if the Health Ministry does not issue a permit, according to a state executive councillor.

Chow Kon Yeow said in order to get a permit for expansion from the ministry, a hospital required a large piece of land that must be located near the original building.

“The upgrade for the hospital was proposed as its location is strategic and in line with the aspiration of the state government to turn George Town into a medical tourism city of choice.

“In fact, it will be equipped with a tunnel to connect the new building and the old,” he said in response to Datuk Muhammad Farid Saad (BN-Pulau Betong) at the State Assembly here today.

Chow, who is state Local Government, Traffic Management and Flood Mitigation Committee chairman, said Tetuan Island Sdn Bhd (IHSB) had paid up 20 per cent of the RM156 million, namely, the overall value in the sale of the site in 2016.

“To date, the state government has received RM32 million with the balance of RM124 million payable after IHSB obtained the permit from the health ministry.

“The payment is for a proposal to invest RM2 billion to develop Island Medical City on a piece of land belonging to the state government at 1449 Jalan Peel which was submitted by IHSB on Aug 6, 2016,” he said.

Earlier, to a question from Dr Norlela Ariffin (PKR-Penanti) on the operation of an illegal sawdust factory in Sungai Lembu, Bukit Mertajam, Chow said it had been ordered to close while other structures were given flexibility pending approval. — Bernama