GEORGE TOWN, April 10 — The Penang government has officially handed over the Tapak Pesta Sungai Nibong to Mass Rapid Transit Corporation, marking a key milestone in the development of the LRT Mutiara Line.
The ceremony was officiated in the presence of Transport Minister Anthony Loke Siew Fook and Chief Minister Chow Kon Yeow, with the project estimated to cost between RM16 billion and RM17 billion.
The site, long associated with the iconic Penang Fair since 1966, will be redeveloped into an integrated transport hub featuring an LRT station and depot.
The transformation aligns with the state’s Penang2030 vision, aimed at promoting sustainable development, improved mobility, and inclusive urban growth while preserving elements of community heritage.
The LRT Mutiara Line, expanded under the announcement by Prime Minister Anwar Ibrahim, will connect the island to Penang Sentral in Butterworth, significantly enhancing connectivity between Penang Island and the mainland.
Authorities said the alignment extension has received overwhelming public support, with more than 16,000 responses recorded during public display sessions and approximately 99 per cent backing the proposal.
The project is expected to play a crucial role in easing traffic congestion while strengthening economic activity across key urban corridors.
According to Loke, MRT Corp will soon begin land acquisition for the second segment of the line, stretching from Macallum to Penang Sentral.
A total of 38 private land parcels have been identified, with gazettement under the Land Acquisition Act 1960 expected by July, and site entry projected in 2027.
Meanwhile, land acquisition for the first segment from Permatang Damar Laut to Macallum is already well underway, with most compensation processes nearing completion.
Early construction works have also commenced, including visible pier and viaduct developments along parts of the alignment.
The Sungai Nibong Pesta site has been carefully evaluated and selected as an additional depot location due to its strategic position near the midpoint of the alignment, which enhances operational efficiency and flexibility in train scheduling.
MRT Corp has revised the depot design to minimise land usage to approximately 11.5 acres, ensuring that only part of the site is utilised for rail operations.
The remaining area will be preserved and upgraded for community use through transit-oriented development initiatives, supporting local businesses and maintaining the site’s cultural significance.
Chow added that the handover will be implemented in phases involving Civil Main Contract 1 (CMC 1) and Civil Main Contract 3 (CMC 3), covering a combined development area of about four hectares within the larger 8.13-hectare site.
He emphasised that the integrated hub will not only support LRT operations but also serve as a catalyst for urban regeneration, balancing infrastructure progress with community needs.
The project is expected to complement the main depot at Penang Silicon Island, further strengthening Penang’s long-term transportation network and economic resilience.
