GEORGE TOWN (Feb 23): The state is calling on bidders to submit their proposal for the rehabilitation and development of the approximate 53-acre (24.28ha) Jelutong landfill site, as well as to propose a new site in the state for the disposal of marine clay and construction and demolition (C&D) waste.

The request for proposal (RFP) announcement for the project, on which the state's investment arm, Penang Development Corporation (PDC), will start work from March 12, confirmed The Edge Financial Daily's report on Jan 28 that said an RFP would be called this month.

The daily had also reported that the Penang government was hoping to reap some RM2.2 billion from land premiums from the project.

State Local Government, Traffic Management and Flood Mitigation committee chairman Chow Kon Yeow told reporters today that the 15-year venture would cost the bidder several hundred million ringgit to ensure the three objectives are met in the RFP.

"They comprise rehabilitating the approximate 53-acre dumpsite, undertake a complete action plan to resolve the dumpsite and peatfire and make it suitable for development, and propose and procure new sites on the island for the disposal of C&D waste and marine clay," he said, adding that the RFP period closes on Sept 12 this year and the successful bidder would be announced by year-end.

Chow said the minimum price of land in Jelutong was about RM500 per sq ft, which could translate to at least RM1.15 billion in revenue to the state. 

"The RM500 per sq ft is only a minimum estimate, because the land next to the landfill which is being developed into luxury condominiums is about RM1,000 per sq ft. But we leave it to them [the bidders] to propose.

"The successful bidder can develop the site into an integrated development site or any suitable development deemed fit, based on detailed studies, including a comprehensive geo-technical report," said Chow.

PDC deputy general manager II Hartini Ali said the developer would be able to reap revenue from the project because it could optimise the space by building upwards on the landfill site that would rise in value when it is rehabilitated.

Chow added that the successful bidder would be appointed as concessioner for 20 years by Penang Island Municipal Council (MPPP) to operate the C&D waste disposal site.

The operator is allowed to salvage or mine the waste at its own cost, he said, adding that the former would need to provide a 500-metre buffer zone between the receptor and residential areas.

"Bidders must propose a new site for the C&D waste and marine clay. They will have to find a new location, purchase it and surrender it to the state. The new site must also cater to facilities such as material recovery facilities," he said.

Chow said the RFP was called after a two-year study jointly conducted by MEI Consultants Sdn Bhd (Meic) and CH2M Hill Malaysia Sdn Bhd (CH2M) at a cost of RM1.5 million.

"The study revealed that the site was developable, but only after measures to ensure the safety of site is done. The successful bidder has the right to extract and recycle the waste from the site.

"So it is important that they ensure the safety, including the tapping of methane gas or enable gas flares. They would have to do a further study to satisfy or concur with the preliminary report by Meic and CH2M.

"The bidders will be allowed to come into the dumpsite to conduct their study. We believe the first five to six years will be dedicated to ensuring the site's safety before development can begin," he said.

In the Jan 28 article, a government source told The Edge Financial Daily that the state had envisioned the site, which was established in 1992 as a sanitary landfill and later a C&D waste area, turning into Penang's first eco-town with mixed development.

The proposed concept and design for the eco-town featured affordable housing units, a shopping mall, meetings, incentives, conferences and exhibition (MICE) centre, a green lung, an artificial public saltwater beach, and an optional yatching marina.

The site, which has accumulated waste amounting to 12.5 million tonnes, has grown to a height of 38 metres or 10 storeys high with about 70% or eight million tonnes of it made up of C&D waste.

The waste is estimated to cost about RM200 million and RM300 million, said the source, adding that the consortium should include experts in urban planning, sea reclamation, construction, and solid waste management, the source said.