GEORGE TOWN: The Penang Development Corporation (PDC) has been ordered by the state government to ensure that even direct negotiations for land sales are advertised now, says Penang chief minister Chow Kon Yeow.
Following the suspension of the controversial Byram land sale to Umech Land Sdn Bhd, Chow said the PDC was instructed to set guidelines to underline the conditions for open tender, requests for proposal (RFP) and direct negotiations processes.
Guidelines for direct negotiations should be included as well, since such methods are permitted by the federal government, he added.
“The PDC presented these guidelines to the board of directors in a recent meeting, but as an addition to these guidelines, I have instructed that open tender and RFP have to be advertised.
“Even direct negotiations have to be advertised so that we can inform the world that (the PDC) has proposed land to be developed, and that interested parties can submit bids and proposals to the PDC to get the project, based on criteria fixed (by the PDC),” he told the state assembly here.
Chow was responding to a supplementary question by Teh Lai Heng (PH-Komtar) on whether the state government would continue practising direct negotiations for future land sales.
Earlier, the chief minister said the state government, through the Chief Minister Incorporated and PDC, had conducted six land deals through direct negotiations from 2008 to September this year.
He also listed the justifications for the direct negotiations of these sales, including the projects’ potential to spark spillover effects and economic growth in surrounding areas.