BOUSTEAD, which had planned a 12-storey, 300-room four-star hotel building in the Unesco heritage zone, is seeking about RM60 million in compensation from the Penang Island Municipal Council (MPPP) for having to scale down its project by seven storeys. The construction hit a snag in November 2008 when the Penang state government pointed out that the proposed buildings were too high and did not abide by Unesco’s stringent guidelines.

Tan Sri Lodin Wok Kamaruddin, Boustead deputy chairman and group managing director, stated that the compensation would “be in the form of land compensation.” Read here

Chief Minister Lim Guan Eng said Boustead’s claims, which include the request for land as compensation, is being discussed. “The claim made by Boustead for having to reduce the height by seven floors is RM60 million, but we are still negotiating on this.” Lim also said some NGOs had urged the state government to cancel the Boustead project without realising the financial implications of doing so. “To reduce the project by seven storeys, the developer is claiming RM60 million, what more if the project is cancelled?” Read here

In response to these, the Penang Forum, a loose coalition of NGOs, noted: “The issue now is that Boustead is seeking compensation from the local government in Penang, ultimately at the expense of Penangites. As a responsible corporate citizen, Boustead, with a group profit before tax of RM502 million from revenue of RM5.4 billion in 2009, should not penalise the people of Penang (who will ultimately pay) for the folly of our past leaders. Bear in mind that the MPPP is operating on a tight budget: its projected revenue for 2010 is a mere RM230 million, giving rise to a budget deficit of RM40 million.” Read here

Other news

• Funds sought to boost property tourism: The Penang Tourist Centre will spearhead a drive to tap funding from state and federal agencies to jointly promote property-related tourism. Read here
• Motorola to steer Penang's science outreach programme: Penang's promotion of interest in science and technology among students has been boosted by Motorola's agreement to steer one of the five pillars of the Penang Science Council (PSC). Read here
• Penang Turf Club has to pay commercial rates: The Penang Turf Club (PTC) is a profit-making enterprise and hence it is only right for the club to pay quit rent under commercial rates. Read here
• Penang govt to fight bridge toll hike: The Penang state government will protest against any attempt to increase the toll for the existing Penang Bridge. Read here
• Council records RM14.57mil in surplus: The Seberang Perai Municipal Council (MPSP) has managed to chalk up a surplus of about RM14.57 million in 2009. Read here

For more news on Penang from April 5 to 11, 2010 , please click here

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