GEORGE TOWN: Penang-based Lone Pine Group of Companies wants to participate in the development of a marina and coastal park in Tanjung Bungah, Penang when the state government opens the request for proposal (RFP) process in the middle of next year.

The Edge Financial Daily on Nov 10 reported Tanjung Bungah state assemblyman Teh Yee Cheu as saying that Penang Development Corp (PDC) plans to issue a RFP for the development of more than 14.5 acres (5.86ha) of sea land in Tanjung Bungah into a marina and coastal park in the middle of next year. The sea land includes the 1.5 acres already reclaimed by Lone Pine Group, which is located adjacent to the group’s ongoing 1 Tanjong project.

Lone Pine Group managing director Datuk Seri Ooi Boon Seng said the group already has a “multimillion ringgit” plan to turn the sea land there into an international marina, which was once part of its massive development plan in 1995.

“We will submit our proposal to PDC when the RFP is called, as it is a continuity of our RM420 million 1 Tanjong luxury condominium project,” he told The Edge Financial Daily in an interview.

To recap, Lone Pine Group had obtained a temporary occupation licence (TOL) from the previous state government to reclaim sea land totalling 14.5 acres in Tanjung Bungah and build a marina that would house some 60 boats.

However, delay in the shipment of sand and rocks had slowed down the reclamation, and only 1.5 acres were reclaimed from the sea, including a permitted storage site for rocks.

Ooi said about RM15,000 was paid annually to the Penang government then for the 14.5-acre land alienated to the group until 2007, but when Pakatan Rakyat took over the state in 2008, the TOL payment was stopped.

“When the new government took over, the payment was discontinued and the TOL was taken away from us. We did not reclaim the sea land illegally,” stressed Ooi.

“We complied with the state’s request to build a public access road and a roundabout to the sea, but we were not given the TOL again,” he said.

It is understood that strong protests by the Tanjung Bungah Residents’ Association, and public and political pressure led to the cessation of the TOL in 2008.

Recounting its original plan in 1995, Ooi said: “We received all the necessary approvals from the state authorities including an all-clear from the Department of Environment telling us there was no need for an Environmental Impact Assessment because the reclamation was less than 50 acres.

“I had a vision for Penang, but the public has its own way of thinking. But if my group is not chosen by the state government, I am willing to let it (my plans) go.”

Nevertheless, Lone Pine Group managed to secure a land title for part of the reclaimed area measuring 6,072 sq ft fronting its 1 Tanjong development.

Ooi said the TOL seizure resulted in a loss of between RM4 million and RM5 million for the group. The money was spent on expert studies, purchase of construction materials and logistics.

“At present, we have no idea what the state government means by its request for an international marina. Our initial plan was to build a marina that could house 60 boats.

“In September last year, we were called by the state to present our plan for a marina and coastal park, but was told that it wanted an international marina instead. I do not know what the difference is.

“So I went to Australia and Singapore to gain an idea of what an international marina was. I then drew up a new plan featuring the state’s request, as well as a seven-storey hotel and low-rise apartments. We later presented it to PDC.

“But in February this year, PDC informed us via a letter that an RFP will be called to develop the area,” he said.

Ooi estimates that the entire development of the marina would cost more than RM5 million because it would require a new hydrography survey to study and describe the beds of marine and inland water areas, following the expiration of the previous report.

Meanwhile, Ooi said the delay in the construction of 1 Tanjong by its subsidiary Province Valley Sdn Bhd was due to a combination of public protests and alleged stop work orders issued by the local authority.

As a result, the initial RM350 million gross development value for the two 41-storey blocks has ballooned to RM420 million, he added.

The 1 Tanjong project, which is being marketed as a luxury beachfront living concept in Tanjung Bungah, is expected to be completed in three months.

This article first appeared in The Edge Financial Daily, on November 24, 2014.