Penang gives RM20m in compensation to Boustead

Posted on 25 October 2011 - 05:28am

Himanshu Bhatt and Aaron Ngui
newsdesk@thesundaily.com

GEORGE TOWN (Oct 24, 2011): The state government has agreed to pay RM20 million to Boustead Holdings Bhd as compensation for scaling down its 12-storey hotel project to five-stories, as required by Unesco heritage requirements, in the city's heritage enclave.

Local government committee chairman Chow Kon Yeow revealed to the state assembly today that Boustead had initially asked for RM58 million but following negotiations, the company agreed to the amount offered by the state.

"Further negotiations are continuing, focusing on the schedule of payment and at the same time, Boustead can go ahead with their project," he said in reply to a supplementary question to Sim Tze Pin (PKR-Pantai Jerejak).

Sim had asked for updates on the plan to give Boustead reclamation rights near Bayan Bay.

Boustead initially was given the green-light to reclaim 100 acres of the shoreline as compensation to scale down its hotel project in George Town's inner city.

However, the state government had revoked the reclamation project following objections by residents and Sim.