Phase 3 of Pulau Burung landfill project now under Penang local authorities

Posted on 25/12/2024

Penang executive councillor H’ng Mooi Lye said the state decided to terminate PLB Terang Sdn Bhd’s services on Aug 1, 2022, due to its unsatisfactory performance. (KESPRO pic)

PETALING JAYA: The management of the Pulau Burung Landfill Phase 3 project, previously under PLB Terang Sdn Bhd, has been transferred to the Penang government following a settlement agreement signed on Dec 18, according to a state executive councillor.

Penang local government, town and country planning committee chairman H’ng Mooi Lye said the company would receive RM35 million to transfer full rights and ownership of the onsite facilities to the Seberang Perai City Council (MBSP) and the Penang City Council (MBPP).

“PLB Terang was appointed to develop and manage the landfill, including a material recovery facility, for a 20-year period from July 15, 2012, to July 14, 2032.

“In July 2022, the state government reviewed the progress of the project and discovered numerous non-compliances and delays on the company’s part in developing the project,” Bernama reported him as saying.

H’ng said the state government decided to terminate the company’s services on Aug 1, 2022 due to its unsatisfactory performance, with operation of the site subsequently handed over to the local authorities.

He said following the termination, the state government entered a mediation process with the company via the two local authorities to finalise the terms of the transfer.

H’ng said the settlement agreement was signed on Dec 18, with payments to be made in stages from 2025 to 2027.

“I would like to emphasise that the payments will be made based on the agreement of both parties to transfer the rights and ownership of the facilities on the site to both local authorities and not as compensation to PLB Terang,” he said.

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