Penang Government Takes Over Management of Pulau Burung Landfill Phase 3 Project
Background
The management of the Pulau Burung landfill Phase 3 project, previously under PLB Terang Sdn Bhd, has been transferred to the Penang government following a settlement agreement signed on December 18, according to a state executive councillor.
Termination of Services
Penang local government, town and country planning committee chairman H’ng Mooi Lye said the company would receive RM35 million to transfer full rights and ownership of the onsite facilities to the Seberang Perai City Council (MBSP) and the Penang City Council (MBPP). PLB Terang was appointed to develop and manage the landfill, including a material recovery facility, for a 20-year period from July 15, 2012, to July 14, 2032.
Reason for Termination
In July 2022, the state government reviewed the progress of the project and discovered numerous non-compliance and delays on the company’s part in developing the project. As a result, the state government decided to terminate the company’s services on August 1, 2022, due to its unsatisfactory performance. The operation of the site was subsequently handed over to the local authorities.
Settlement Agreement
Following the termination, the state government entered a mediation process with the company via the two local authorities to finalise the terms of the transfer. The settlement agreement was signed on December 18, with payments to be made in stages from 2025 to 2027.
Clearing up Misconceptions
H’ng emphasized that the payments will be made based on the agreement of both parties to transfer the rights and ownership of the facilities on the site to both local authorities and not as compensation to PLB Terang.
Conclusion
The transfer of the management of the Pulau Burung landfill Phase 3 project to the Penang government marks a significant milestone in the development of the project. The state government’s decision to terminate the company’s services and enter into a settlement agreement ensures that the project will be completed and managed effectively, and that the rights and ownership of the onsite facilities will be transferred to the local authorities.
FAQs
- What is the Pulau Burung landfill Phase 3 project?
- The Pulau Burung landfill Phase 3 project is a waste management project that involves the development and management of a landfill and material recovery facility.
- Why was the company’s services terminated?
- The company’s services were terminated due to its unsatisfactory performance, including non-compliance and delays in developing the project.
- What is the settlement agreement?
- The settlement agreement is an agreement between the state government and the company to transfer the rights and ownership of the onsite facilities to the local authorities.
- When will the payments be made?
- The payments will be made in stages from 2025 to 2027.