Chow said the state ended the concession on May 31, issuing a formal termination notice on Sept 22, after Rayston Consortium (Butterworth) Sdn Bhd (RCSB) could not prove its 582ha plan was feasible.

“It faced high costs, a shift in the site due to port growth, and height limits set by the Air Force. The firm could not prove the project was workable,” he said in his winding-up speech at the state assembly.

Chow said no sand or reclamation work had begun, and that the agreement was terminated before any physical work began.

However, he said the state remains open to new proposals for the Bagan Ajam-Teluk Air Tawar stretch, provided companies could demonstrate the necessary expertise and financial capability.

The Butterworth foreshore reclamation plan dates back to 1999 during the Barisan Nasional administration, when RCSB was granted rights to reclaim about 650ha as part of the Butterworth Outer Ring Road resettlement deal.

The project was revived in 2018 under a new agreement that increased the state’s land share to about 90ha. In 2021, the state said it had to proceed (with the project) or risk penalties.