GEORGE TOWN, May 28 — Penang Development Corporation (PDC) has defended its decision to reject the IJM-Aspen-Mettiz consortium’s proposal for the Batu Kawan Industrial Park 2 (BKIP2) project.
Saying the bid failed to comply with several key Request for Proposal (RFP) requirements. PDC said the consortium’s offer contained “worse off” variations.
And imposed conditions precedent that contradicted the original RFP terms. Among the major concerns raised were requests for PDC to bear approximately RM150 million in infrastructure.
Connection costs involving electricity, water and telecommunications, as well as an estimated RM144 million in premium costs related to freehold land conversion.
PDC chairman Chow Kon Yeow said the RFP clearly stated that all infrastructure, utility and related development costs were the responsibility of the developer.
PDC also rejected claims by Aspen Group Holdings Limited that the developer would absorb premium and conversion costs, stating no such commitment appeared in the submitted documents.
The agency added that conditional proposals and requests for exemptions from RFP terms were grounds for rejection under the tender guidelines, stressing that PDC retains full discretion in evaluating and rejecting bids.
