A ministry reply to an FMT query said the Bayan Lepas LRT project on the site known as Island A had yet to be given the green light because the environmental impact assessment (EIA) for the island had not been approved.

“The final railway scheme approval is yet to be granted,” it said.

Island A is part of the contentious Penang South Island project. A depot will be built on it.

The railway scheme approval is a requirement for any rail project on the peninsula. This is stipulated under Section 83 of the Land Public Transport Act. The transport minister has the final say.

In 2019, the environment department gave full EIA approval for Island A and two other islands. However, this was overturned after an appeal by 185 coastal fishermen.

The appeal is being challenged in the High Court by the Penang government, which is asking for the approval to be reinstated.

Besides the EIA for the three islands, the alignment of the station at the Penang airport is another stumbling block.

“This is to be finalised by the applicant, the Penang government, with airport operator Malaysia Airports Holdings Berhad (MAHB),” the ministry said.

State infrastructure committee chairman Zairil Khir Johari told FMT all relevant approvals would be obtained once the EIA was endorsed.

He also said the matter with the Penang airport had been sorted out with MAHB.

The railway scheme approval, he added, had no bearing on a pre-qualification exercise for interested parties vying for the project.

Earlier, it was revealed that more than 40 companies had shown interest in building the LRT project through private financing. The LRT line will stretch across 26.8km and there will be 23 stations between Komtar and Bayan Lepas.

Penang requested federal funds under the 12th Malaysia Plan as public transport projects are funded by Putrajaya.

However, it is now seeking private financiers since there has been no favourable response from the federal government to the request.