The Penang state government rejected a consortium bid of RM818 million from IJM Corporation and Aspen Group for the Batu Kawan Industrial Park 2 (BKIP2) project due to failure to meet key conditions, officials said today [1, 2].
The bidder did not fulfill five of nine critical requirements in the request for proposal (RFP), including a refusal to build a bridge connecting BKIP2 to the existing Batu Kawan Industrial Park. The bridge was estimated to cost more than RM200 million, heavily reducing the effective value of the offer [1, 2]. The consortium also sought a "first right of refusal" on adjacent land, a request rejected by the Penang Development Corporation [1].
The RFP was launched in late 2023 after a prior joint venture with Umech Land collapsed following public criticism about the lack of open tender and undervaluation of the land [1].
At an assembly sitting on May 14, Chief Minister Chow Kon Yeow and opposition leader Lim Guan Eng clashed over the bid rejection and handling of the RFP process. Lim demanded transparency on the second RFP and parties involved, but Chow refused to disclose details, citing bidder conditions as the reason for rejection [2].
Chow said, "If Yang Berhormat wants us to accept the offer, I want to say sorry, we cannot accept it," while Lim responded, "Don't get so emotional. If we have the facts, we can explain them" [2]. Chow also accused Lim of trusting external media over his own allies, stating, "Yang Berhormat believes The Edge but does not believe his own ally" [2].
Lim warned the matter tarnished the state government's image, referencing The Edge's description of the episode as "Turkey of the Year" [2].
The assembly dispute followed a report on May 13 detailing the rejected bid and RFP issues by New Straits Times [2].
The Penang government is expected to continue calling for fresh proposals for the BKIP2 project following the bid rejection and political dispute [1].
