sPICE To Spice Up Penang?

Posted by Unknown On Friday, January 21, 2011 0 comments
According to The Malaysian Insider, Penang residents have been given a two-week window to provide their feedback on the state government’s plan to construct the Penang People’s Park (PPP), which includes a RM300 million international convention centre.

image from sembang-sembang forum

Beginning today, the public will be allowed to view the plans for the multimillion ringgit project from 9am to 5pm for two weeks at the main entrance of the Penang International Sports Arena (Pisa). Members of the public can communicate their views on the project directly at the venue or via email to MPPP council president at hiyah@mppp.gov.my in the next two weeks.

In a press statement this morning, Penang Chief Minister Lim Guan Eng said that public consultation was a key aspect in the state government’s “CAT” governance of competency, accountability and transparency.

The PPP is a five-feature construction that includes the country’s first subterranean RM300 million Penang International Convention and Exhibition Centre (sPICE), a seven-acre public park, a refurbished and upgraded Pisa, a refurbished and upgraded Aquatic Centre and a four-star hotel with retail outlets and a spacious parking lot.

The Penang CM announced that the project has been awarded to Eco Meridean Sdn Bhd, a subsidiary of property developer SP Setia Bhd, which was among the three firms that submitted formal responses to a request for proposal in an open tender system for the project in 2009.

“Three key requirements were considered in awarding the open tender — best value for money pricing, best product quality and whether it can be maintained to match world-class standards,” Lim said today.

He reiterated that the company’s proposal for PPP and sPICE had passed all three requirements and had also fulfilled the state government’s plans to protect the environment.

“sPICE will be a green building and will provide a new seven-acre public park. As it is underground, the park will be at ground level and not at rooftop.

“The public park will be open to the public free of charge and no charges imposed as alleged by some,” he said.

Earlier, Lim had announced that the MPPP would be investing a net sum of RM11.5 million in the RM300 million project, through a public-private partnership agreement with Eco Meridean.

According to LGE, that while the council was to invest RM50 million in the project, savings from the RM25 million repair works on Pisa and the Aquatic Centre and the purchase of land at RM13.5 million to construct the four-star hotel would save the council some RM38.5 million.

For SP Setia, he added, the firm was confident that by managing and maintaining sPICE for 30 years, it would be able to recoup its investments through rentals and other related activities.

“This is a vote of confidence for Penang that the state will be a preferred choice of investors, tourists, young and talented residents who desire a sustainable habitat.

“SP Setia’s confidence is also backed by other foreign and local investors who made Penang the champion state in Malaysia for the first time in history with RM 12.2 billion in investments in 2010, the highest total ever for Penang,” he said today.

Here's background information that I received in an email from Sembang-Sembang Forum:

1. They renamed PICC as sPICE (sub-terranean Penang International Convention and Exhibition Centre) since it will be a sub-terranean building -Tetuan Eco Meridean Sdn.Bhd, a subsidiary company of S.P. Setia Bhd is awarded the project via open tender/ RFP(request for proposal) in the format of BOT (Build, Operate and Transfer)

2. The decision was make after considering the quality, best price and management standard that could provided+ green element that offered.The design seem to be ppl friendly(OKU facilities) and holistic with iconic and international level architectural, potential to become a new landmark of Penang. The developer had presented a clear business model and development plan including return+expanses analysis.

3. Total construction cost is RM300milion, MPPP invests RM50million meaning Eco Meridean bears the rest RM250million.

4. Eco Meridean will allowed to operate the sPICE for 30 years, to recoup their investment through rental and related activities before hand it back to MPPP.

5.Eventually, the entire area of PISA will convert into a PPP (Penang People's Park) that comprised of 5 major items: sPICE, PISA, Aquatic Centre, 4 Star Hotel+retails outlet + carpark and Green Park.

6. Eco Meridean is obliged to upgrade and refurbish PISA and the Aquatic Centre as well. They will start doing so after signing contract and get all necessary approval within 3-6 months.

7. The new sPICE built up area is more than 70k sq feet, the green lung area within the whole PISA compound will double frm 3.5 arce to 7 arce for public use.

8. The sPICE will have one ballroom 23k sq feet, one exhibition hall 23k sq feet, both hall can fully open up to 51k sq feet. if including the pre-function hall, total area will around 70k sq feet.

9. They wil refurbish PISA 2nd floor arena to temporarily create space for renting, keep the arena capacity as 50k sq feet, upgrading Aquatic Centre 17k sq feet and f&b shops nearby.

10. They will build a new 2 storey car park and expand the recent car park space to achieve a total carpark lot of 2200.

11. They said will conduct a professional traffic study to modify the traffic flow but there are no details for the media yet.

12. The whole project is estimated to be completed within 3 years.


This afternoon, I also received a statement via email from Coalition for Good Governance Penang (CGGP)on the launching of sPICE as follows:

CGGP statement on the launching of sPICE.

To the Chief Minister of Penang YAB Lim Guan Eng:

The Coalition for Good Governance Penang (CGGP) wishes to commend the Penang State Govt for having the courage and ambition to pick an innovative design concept for the sPICE project. The sub-terranean design with a roof garden is an engineering and technological challenge.

The ratepayers are now stakeholders of the project as millions of ringgit of ratepayers money will be used. In the interest of accountability and transparency, CGGP urges the Penang State Government to :-

1) Disclose details of the concessions and tender terms given to the developer including penalty clauses in case of non-performance, project delay etc.

2) Disclose the financial returns to the State / MPPP.

3) Disclose the total project cost including infrastructure, repair and maintenance and which party is bearing these costs.

4) Proactively engage the public, especially the residents living within the vicinity of sPICE on the traffic dispersal system through feedback and dialogue.

We wish to state that the rakyat have suffered due to the lopsided concessions given to GLCs such as PLUS, Penang Bridge etc which only came to light 20 years after the agreements have been signed.

Contact person: Tan Seng Hai
Email: shtan0202@yahoo.com
Phone: 019 478 2395
Copies to:
- YDP Puan Hj Patahiyah Ismail
- State Exco
- Councillors
- Aduns
- Press

Personally, much as I acknowledge how the current state government has wrought positive changes for Penang, I believe that that Penang does not need sPICE. It will boomerang around coz of the anti RM5Billion Merdeka Tower. Malaysia needs Brains, and NOT tall buildings. Also to note that Komtar has been a Beautiful White elephant. Instead of spending more money building on sPICE, why won't the government try to fill up KOMTAR first? Money should be spent developing HUMAN CAPITAL which our country desperately needs to stay ahead of competitors.

I urge all concerned Penangites and Malaysians to view the plans for the project and to communicate their views on the project directly at the venue or via email to MPPP council president at hiyah@mppp.gov.my in the next two weeks.

Please remember that in the past, the rakyat had suffered from lopsided concessions given to government-linked companies. A very good example is what has been explained in THIS POST written by Joe Hakim which should be read by all Malaysians.

There are OTHER cheaper and better ways to spice up the situation in Penang without spending so much and letting Penangites pay for its externalities.

What say you?

Recommended Reading: Penang Does Not Need the RM50million PICC.

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