Peel Avenue residents have put forward nine concerns about a nearby private hospital expansion project, after being asked to submit their feedback to the Penang Island City Council (MBPP) last August.

State executive councillor Chow Kon Yeow said the feedback from the residents include concerns about traffic congestion and a lack of parking space due to the Island Medical City project.

Other concerns touched on the height of the building and density of the area, and possible interruptions to basic infrastructures, such as water supply, electricity, and telecommunications.

“The residents also expressed their concerns about a buffer zone between the development and the housing area, and asked if their view would be blocked by the hospital expansion project,” Chow (photo) said during the question and answer session at the Penang Legislative Assembly today.

“They also asked about garbage management, the effect on health due to environmental and noise pollution, and the safety of residents in the area.

“They want the developer to ensure the safety of the residents and be responsible for any damages that may be caused by the construction of the hospital building," he added.

Queries on project status

Chow was responding to a written question posed by Muhamad Farid Saad (BN-Pulau Betong), seeking clarification on the planning and development status of the Island Hospital expansion.

“Why do the residents around the area object to the project? What is the direction of the development?” Farid asked.

Chow responded by saying that the state government has responded to all queries highlighted by the residents on Peel Avenue.

He added that the owner, Island Hospital Sdn Bhd (IHSB), is taking several steps to ensure that residents are comfortable with the development, which include providing adequate parking spaces and upgrading roads in the area to ease congestion.

Chow also noted that planning permission for the project was submitted to MBPP's One-Stop Centre (OSC) on June 23, along with a conditional cash plan on Sept 25.

“IHSB is currently awaiting feedback from the OSC to review the project,” he added.

Echoing previous queries from other state BN leaders, Farid also questioned why no other project was considered for the plot of state land, which faces the existing Island Hospital on Peel Avenue.

Chow replied that the state government had received an application from Island Hospital on Aug 6 to invest RM2 billion to develop the Island Medical City project.

The project, which was awarded without open tender, was described by Chief Minister Lim Guan Eng as “foreign direct investment”.

“Since the time of BN (prior to 2008), the state has always promoted Penang as a medical tourism destination,” Lim had said.

Chow added that a sale and purchase agreement was signed between Chief Minister Incorporation (CMI) and IHSB on Dec 19, 2016.

IHSB paid 20 percent (RM156 million) of the sum in 2016, with 40 percent to be paid 14 days after the hospital obtained approval from the Health Ministry, and the remaining 40 percent after another 30 days.

Chow said the entire Island Hospital expansion project may be called off if IHSB failed to obtain this approval.

“The project may be called off if there is no licence to operate from the Health Ministry,” he added.