Review sPICE contract, CM told.
5 Oct 2011, 10:45 AM
Posted in News
Penang Gerakan wants the state government to review the contract between the Penang Municipal Council with the developer of the RM250mil subterranean Penang International Convention and Exhibition (sPICE) Centre in Relau.
State Gerakan local government bureau chief Teh Leong Meng said that the Concession Agreement is perceived as lopsided favouring the developer over the public.
Teh urged the state government and the developer, Eco Meridian Sdn Bhd, to heed the feedback from various quarters and make adjustments to the agreement before the project gets off the ground.
Among the “unfavourable” clauses that do not benefit the people is the 20-year period given to the developer to construct 450 low-medium cost houses.
The agreement states that the state government must provide a piece of land at no cost to the concessionaire within 20 years from the execution of the agreement, failing which the concessionaire will not be obliged to build the houses.
“The state government must live up to its competency, accountability and transparency mantra, and make suitable changes to the agreement before it is too late,” Teh said at a press conference at the Penang Gerakan headquarters in Jalan Macalister. Also present were State Gerakan legal and human rights bureau chief Baljit Singh and State Gerakan publicity and communications bureau chief Dr Thor Teong Ghee.
Teh said the Concession Agreement also states that the selling price of LMC units in relation to the project is not lower than RM72,500 per unit. However, the MPPP website says the price is not exceeding RM72,500. Which one is correct?
Teh said it has always been Gerakan’s stand that the sPice project should not have been approved in the first place.
“I have received many calls from the public and other developers on how ridiculous the state government has been to agreeing to certain clauses in the agreement,” Teh added.
Early this year, Chief Minister Lim Guan Eng announced that Eco Meridian had won the contract to build the sPICE centre.
by Editorial Desk
gerakan4u.com
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