GEORGE TOWN, July 15 — The proposed hospital and hotel development on the Taman Manggis land along Jalan Zainal Abidin is expected to begin in mid-August and be completed in 2029.

Penang Chief Minister Chow Kon Yeow today said the project had resumed and would proceed without any changes to the building layout approved by the Penang Island City Council (MBPP).

He chaired a special meeting with the project consultants on July 8.

“This is a 21-storey hospital and hotel on 4,061 square metres of land,” he told a press conference, adding that the land was leased for 99 years to Kuala Lumpur International Dental Centre Sdn Bhd (KLIDC).

The state government, through the State Economic Planning Division (BPEN), issued an official letter to KLIDC on June 16 seeking updates on the project at Lot 10011, Section 16, George Town, after the land had remained unused for years.

Chow said KLIDC obtained planning permission and approval to commence work from MBPP in 2020.

He said piling works at the site were completed in October 2020.

“However, construction works on site were suspended for a prolonged period due to various challenges, including disruptions to the construction material supply chain, labour shortages, rising construction costs, and financing and cash flow issues affecting the project,” he said.

He said the project had resumed following a change in KLIDC’s shareholders and would proceed without any changes to the building layout or the original approvals granted by MBPP.

Project consultant architect Nora Che Idris said the development would now involve the construction of Victoria Hospital under KLIDC’s new management.

“We have already called for tender for the main structure from May 12 to June 27 with five tenders submitted,” she said.

She said technical and commercial evaluations were under way before a contractor was appointed.

“In addition, work involving the mechanical and electrical (M&E) sub-consultancy scope has also been carried out,” she said.

“Construction works are expected to commence in mid-August and construction period is expected to take 36 months, from commencement until the issuance of the Certificate of Completion and Compliance (CCC), with full completion targeted for August 2029,” she said.

She said the hospital and hotel were expected to begin operations in the fourth quarter of 2029.

The 151-bed hospital and 264-room hotel are expected to create 800 jobs once operational.

The lease of the Taman Manggis land has been a contentious issue, with political opponents questioning the project since its approval in 2019.

Last month, Penang Gerakan raised concerns over the land remaining undeveloped despite being leased to KLIDC.