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GEORGE TOWN (May 15): A heated confrontation broke out in the Penang state assembly on Thursday as Chief Minister Chow Kon Yeow defended the state's decision to reject an RM818 million bid for the Batu Kawan Industrial Park (BKIP2) project.
Chow locked horns with his predecessor and DAP national adviser Lim Guan Eng (PH-Air Putih) over the issue during Chow's winding-up speech on the proposed BKIP2 project in Byram, when Lim demanded clarity on why a subsequent request for proposal (RFP) was not carried through.
Chow said the state government walked away from the offer, which was from a consortium comprising IJM Corporation Bhd (KL:IJM) and Aspen Group, as the bidder failed to meet five out of nine key conditions set out in the first RFP.
Chow argued that the headline sum could not be taken at face value as the consortium had attached additional stipulations that would have shifted significant costs back to the Penang Development Corporation (PDC). One key requirement, he said, was for the winning bidder to construct a bridge connecting the site to the Batu Kawan Industrial Park, a condition IJM-Aspen rejected.
Chow estimated the cost of the bridge alone to be more than RM200 million, which would have reduced the effective value of the RM818 million proposal to roughly RM500 million once other expenses were factored in.
He also revealed that the consortium had sought for a "first right of refusal" over an adjacent plot of land, which the PDC could not agree to as it would restrict the state government's ability to determine the future use of the plot.
"If several hundred acres next to this land [BKIP site] were given under first right of refusal, we would no longer be the government. Aspen would become the government," he shot back.
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BKIP2 to go for another round of bidding after second RFP fails
The RFP was launched in late 2023 after the state government was forced to terminate a previous joint-venture agreement with Umech Land Sdn Bhd — a company later revealed to be majority-owned by Sunway Bhd (KL:SUNWAY). That deal collapsed following intense public scrutiny over the lack of an open tender, and claims that the land was being sold significantly below market value.
Following the state government's rejection of the IJM-Aspen bid, the state government then launched a second round of RFP for the 2,300 acre site.
The situation escalated when Lim interrupted Chow's explanation, demanding to know which companies had put in their bids in the second RFP, who was selected, and why the second RFP had stalled.
Chow declined to give a direct answer, retorting instead that if Lim expeted the state to accept the IJM-Aspen deal despite the unfavourable terms, it was "not possible".
Lim took issue with this suggestion, saying that he was not lobbying for any specific company but was merely seeking a transparent explanation on the second RFP for accountability purposes, given that a major state asset was at stake.
The two then talked over one another. While Chow kept repeating that each RFP carried different terms and proposals, Lim cited that The Edge business weekly had labelled the BKIP2 saga the "Turkey of the Year" in its 2023 year-end review, following the PDC's decision to bypass a competitive tender in favour of a direct-award to Umech. Lim claimed this had hurt the Penang government's image.
"You believe The Edge, but not your comrade. Sit down!" an exasperated Chow fired back.
Brushing off Chow's reaction, Lim told him he should not become emotional but should set the record straight with The Edge if their reporting was not accurate.
At this point, Speaker Law Choo Kiang intervened, urging both to move on from the topic, noting that the chief minister had already addressed the issue.
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