The Penang South Islands (PSI) project will be scaled down with the 566ha Island B and 324ha Island C now scrapped, says Chief Minister Chow Kon Yeow.
He said no further reclamation would be done for those components of the controversial project.
He said this would result in a 49% scaling down of the manmade island project.
“During a visit to Penang last week, Prime Minister Datuk Seri Anwar Ibrahim announced an allocation for the proposed light rail transit (LRT) project.
“He also asked the state government to scale down the PSI project.
“Taking his advice, the state executive council discussed the matter yesterday (Wednesday, May 10).
“We accept the prime minister’s advice and will not proceed with the reclamation plans for Islands B and C.
“We have decided to only proceed with Island A, now known as Silicon Island,” he told a press conference at his office in Komtar on Thursday (May 11).
The PSI project, which is off the southern coast of Penang island, originally involved the reclamation and development of three islands covering 1,820ha, with the principal Island A covering 930ha.
The project site is in the waters off Permatang Damar Laut, near Bayan Lepas.
Chow said Penang had obtained environmental impact assessment (EIA) approval for the reclamation project.
He said the approval was for all three islands, but it should not be a problem if the state proceeded with only one.
The project met with objections from the fishing community and environmental non-governmental organisations in the state who claimed it would damage the marine ecosystem.
Chow also said that with the latest development, only 115 fishermen from the Permatang Tepi Laut fishing unit, facing the Silicon Island reclamation site, would be directly involved compared with 496 fishermen (from four fishing units) before this.
Chow added that the state government would not be involved in developing any of the reclamation sites.
“Our responsibility is only to reclaim and prepare the common infrastructures such as roads, telecommunications, water supply, promenade and such.
“Nevertheless, the state government will not be involved in financing the reclamation cost as well as the common infrastructures,” he added.
The Penang government plans to fund the project through real estate development on the reclaimed island.
Meanwhile, Sahabat Alam Malaysia president Meena Rahman did not agree with the decision to scale down the project and called for it to be scrapped.
She said even one island could have a negative environmental impact on the fishermen in the area.
“The single island is still very large and will affect the fishery spawning grounds and the environment.
“Plus, it will involve large volumes of sand for the reclamation from Penang or Perak waters, causing more damage,” she said in a statement.
She added that the project will degrade marine habitat and disrupt shrimp migration.
“So, it is not only the fishermen in the immediate site (who will be affected) but also those along the Penang, Kedah and Perak waters.
“So, scrap the project, not scale down.”