Penang chief minister Chow Kon Yeow said the approval was given by the natural resources, environment and climate change ministry with 71 conditions under an elaborate environmental management plan.

“It must be stressed that all reclamation work would begin once the environmental management plan is given the approval,” he told reporters at Komtar today.

The project previously received fierce opposition from fishermen, environmentalists and the G25 group of prominent retired civil servants over concerns that it would adversely affect marine life.

Chow said that with the letter of approval dated April 11, Penang was set to reclaim all three islands under PSI, although work would only begin on the first island on the coast next to the Bayan Lepas airport runway.

He said the 71 conditions included the social impact management plan and an ecology offset master plan.

The RM10 billion reclamation project is a state government initiative to finance the RM46 billion Penang Transport Master Plan through the reclamation of the three islands covering 1,620ha off Permatang Damar Laut.

PSI project delivery partner SRS Consortium Sdn Bhd (SRS) will reclaim one of the three islands. Consortium partner Gamuda Bhd will pay RM3.8 billion to reclaim half of Island A as part of a 30:70 joint venture with a state government-linked company, with the lion’s share to be held by SRS.

SRS will reclaim the other half of the island when there is demand.

Earlier reports indicated that the first half of the island will be ready to be developed by 2025. Gamuda had said the PSI, commonly known as the “three islands project”, would one day rival Singapore’s Marina Bay.

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