Johor reclamation project sparks concerns again

Kua Yu-Lin The Straits Times AsiaOne 24 Dec 14;

PONTIAN (Malaysia) - A proposed land reclamation project in the Johor Strait has once again raised environmental concerns, even as a Detailed Environmental Impact Assessment (DEIA) report on it was released by the Pontian authorities last month.

The project to create a 1,411ha island, known as the Tanjung Piai Maritime Industrial Park, is one of two massive land reclamation projects in the south-western end of Malaysia's Johor state which have previously sparked concerns among environmentalists.

The other project, a 2,000ha proposed island, near the Second Link Bridge connecting Johor to Singapore, is known as Forest City.

A Straits Times report in June quoted the company involved in the Tanjung Piai project, Benalec Holdings, as saying reclamation is expected to begin before the end of this year, and oil storage facilities would be built once the island is completed.

Pekan Nanas assemblyman Yeo Tung Siong of the opposition Democratic Action Party raised concerns at a press conference over whether Tanjung Piai will become another Pengerang, reported the Sin Chew Daily last Saturday.

He was referring to a US$16 billion (S$21 billion) project on the south-eastern side of Johor, in Pengerang, called the Refinery and Petrochemicals Integrated Development (Rapid), which activists have said would harm the environment and affect the livelihoods of fishermen. Previous media reports said this project is part of the Malaysian government's plan to capture some of the global energy business from Singapore.

Benalec is also involved in the reclamation works to extend the shoreline of the Rapid project.

As for the Tanjung Piai project, Mr Yeo raised fears that the proposed oil storage facility, which is less than 1km away from Tanjung Piai's mangrove forests and about 10km away from Kukup fishing village, will bring irreparable damage to the forests and fishing grounds in the area.

The facility will attract large oil bunkers, leading to the possibility of oil spills that will have a serious impact on the water quality.

Many fish farms and resort operators are likely to be affected too, added Mr Yeo.

Already, he said, close to 90 per cent of local residents are against two other major development projects in the area, a power plant in Tanjung Bin and a port in Tanjung Pelepas.

According to the DEIA report, 51.2 per cent of residents polled have voiced opposition to the Tanjung Piai project. Mr Yeo cited this as a reason that he is gathering at least 50 signatures for a petition which he will submit to the Environment Ministry on Friday.

Johor lawmakers say diplomatic row with Singapore possible over manmade island
Straits Times 23 Dec 14;

A view of the Second Link at Tuas from the Singapore side. The Forest City project is a man-made island with total size of 2,000ha - nearly three times the size of Ang Mo Kio estate - in the Johor Strait opposite Tuas. -- PHOTO: ST FILE

JOHOR BARU - Johor lawmakers fear that Malaysia and Singapore will be embroiled in a diplomatic row when the detailed environmental impact assessment (DEIA) report of the controversial Forest City project is approved, the New Straits Times (NST) reported on Tuesday without naming the lawmakers.

They are worried about the possibility of "retribution" from Singapore, the pro-government newspaper said, citing the republic's reclamation works in Pulau Tekong and Tuas more than a decade ago as an example.

Malaysia had in 2003 took its complaint to the International Tribunal for the Law of the Sea (ITLOS) following Singapore's actions in the Pulau Tekong and Tuas reclamation works, raising bilateral diplomatic heat.

"I hope both governments can work together to resolve the Forest City reclamation issue," an unnamed Johor assemblyman was quoted as saying by NST. "If it is brought to the ITLOS for arbitration, it can affect investors' confidence in Johor and Iskandar Malaysia."

The Forest City project is a man-made island with total size of 2,000ha - nearly three times the size of Ang Mo Kio estate - in the Johor Strait opposite Tuas.

It is being built by China's Country Garden Holdings which plans to build luxury homes on the reclaimed land over the next 30 years.

The project will be split into four man-made islands, NST reported in September, following a Malaysian hydrology study. The biggest island will measure 1,005ha and the smallest 58ha.

Sand for the project is being dredged up off Teluk Ramunia at the eastern tip of Johor, NST said, and delivered by barges via the Tuas side of the Johor Strait.

Singapore has conveyed its concern on a number of occasions to Malaysia, asking for more information on reclamation and construction works in the Johor strait from May.

Apart from Forest City, investors are also planning a 1,411ha man-made island called Maritime Industrial Park to host an oil-storing and energy hub. The project is also located off Tuas and has raised environmental concerns.

Reclamation works for Forest City had been started, and then stopped in June, as environmental impact studies are being carried out by Malaysia's Department of Environment.

The DEIA is expected to be released this week, NST said.

In the Pulau Tekong and Tuas reclamation cases, Malaysia had pursued the matter with ITLOS although Singapore had given the assurance that it had undertaken mitigation measures.

Similarly, several mitigation measures are being proposed for the Forest City project, but the assemblyman said Singapore might not be pacified with such assurances.

"Bringing the case to the arbitral tribunal does not bode well for cordial bilateral ties, which is needed to speed up several impending projects, including the Rapid Transit System connecting Johor Baru and Woodlands," said a second assemblyman.

Benalec: Tanjong Piai job delayed on client’s request
NUR HANINI MOHD HANIFKUALA New Straits Times 23 Dec 14;

BENALEC Holdings Bhd, a marine construction services provider, said its land reclamation project for 1MY Strategic Oil Terminal Sdn Bhd in Tanjung Piai, Johor, has been delayed on the client’s request.

“The project was put on hold, based on our client’s request. We were informed by them that they needed some time to iron out some of the terms and conditions in the agreement,” Benalec chief operating officer Desmond Boey said after the company’s annual general meeting yesterday. Boey declined to reveal further details.

Benalec has extended the term sheet validity period for the signing of the land reclamation deal for another six months from December 12 until June 11.

It had announced to Bursa Malaysia that its 70 per cent-owned Spektrum Kukuh Sdn Bhd had entered into a binding term sheet with the State Secretary, Johor, and 1MY Strategic to undertake the reclamation works and the sale of about 404.6ha off the coast of Tanjung Piai for the development of a crude oil and petroleum storage facility together with a private jetty.

The 404.6ha of reclaimable land is estimated between RM2.5 billion and RM3 billion.

Boey said its land reclamation contract is awaiting approval from the Environmental Impact Assessment (EIA).

He said the delay will not pose a big impact on Benalec for now as it still has projects in Malacca until 2017.

Boey added that the Tanjung Piai job, as well as another reclamation project in Pengerang, Johor, will open up doors for recurring income, providing strong growth and investment opportunities.

On land sales, Benalec in December had sold 23.4718ha worth about RM100 million, which will be recognised in 2016.

The company is looking at expanding its landbank and future projects mostly in the east coast of Peninsula Malaysia.

“We are eyeing not just land reclamation projects but also dredging and other marine based construction projects,” said Boey

Benalec posted a lower profit of RM7.1 million in the year ended June 30 2014 from RM56.6 million last year.