Developers of Johor's Forest City, near Second Link, say environmental concessions were made

SHANNON TEOH, MALAYSIA CORRESPONDENT IN KUALA LUMPUR Straits Times 19 Mar 15;

KUALA LUMPUR - The developers of Malaysia's controversial Forest City reclamation project, close to Singapore's Tuas Second Link, have insisted that they have made compromises and concessions due to environmental concerns.

Pointing out that their project is on a far smaller scale than reclamation done by Singapore, Country Garden Pacificview (CGPV) boss Othman Yusof told reporters today that the plan, worth RM450 billion (S$169 billion) in gross development value, had been reduced by 30 per cent after a Detailed Environmental Impact Assessment (DEIA) and Hydraulic Study.

"Singapore's land reclamation of Tuas, some parts are only 200m from the (maritime border)," Datuk Othman said, adding that Malaysia's Department of Environment (DoE) recommended that Forest City build at least 1km from the border.

"Even the nearest island to the border is 1.1km away," he said.



The original 1,978ha project has been mired in controversy due to concerns from the local population, some of whom fish in the Johor Straits for a living, and from Singapore over damage to the marine environment.

It was reduced to 1,624ha after a hydraulic study forced the company - which the Sultan of Johor reportedly has a significant interest in - to split the development into four islands to protect sea grass and other marine wildlife.

The DEIA approved it in January, then reduced it further to 1,386ha - about three times the size of Singapore's Sentosa Island.

CGPV is 60 per cent owned by one of China's largest property firms Country Garden, while Esplanade Danga 88 - controlled by the Sultan - holds the remaining 40 per cent.

The company expects to launch its first units for sale by the end of this year, and expects the first owners to move in around 2020.

Forest City reclamation work starts, developer says

Infographic of coastal reclamation projects off Straits of Johor, by The Malaysian Insider

Today Online 19 Mar 15;

KUALA LUMPUR — Reclamation work on the controversial Forest City project in Johor has restarted after eight months, with its developer saying yesterday that it had obtained approval from Malaysian authorities and had carefully looked at how to minimise any impact on the environment.

The developer, Country Garden Pacific View (CGPV), said the Malaysian Department of Environment had approved its Environmental Impact Assessment (EIA) in January, and its Environmental Management Plan (EMP) last month.

“We are pleased to be able to ­recommence our work, and, with our proven track record and quality of delivery, we are confident that the project will be completed within our timeline,” said CGPV executive director Md Othman Yusof.

A Ministry of Foreign Affairs spokesman said that Singapore has recently received the EIA reports, and is studying them closely.

“As conveyed to Malaysia earlier, Singapore is concerned about the potential transboundary impact from Malaysia’s land reclamation projects in the Straits of Johor, given their close proximity to Singapore,” said the spokesman, who was responding to queries from TODAY.

Since May 2014, Singapore had requested for all relevant information regarding such reclamation projects in the Straits of Johor, including EIA reports, from Malaysia in accordance with its obligations under international law and in particular under the United Nations Convention on the Law of the Sea.

“Singapore has recently received the EIA reports for Forest City and R&F Princess Cove from Malaysia, and is studying the reports closely. We will work with Malaysia to address any potential transboundary impact on Singapore,” added the spokesman.

The R&F Princess Cove is a separate development project in Johor involving reclamation.

Forest City, an origiinally 1,978 hectares project, has been mired in controversy due to concerns from the local population, some of whom fish in the Johor Straits for a living. Locals had argued that the reclamation would lead to the loss of their land and livelihood. Local fishermen have blamed the ongoing reclamation works for mass fish deaths in the Johor straits recently. During a public dialogue on September 21 last year, residents accused developer CGPV of bulldozing the project through.

The project was reduced in size to 1,386 hectares after a hydraulic study forced the company to split the development into four islands to protect sea grass and other marine wildlife.

“At 1,978 hectares, we estimated it (gross development value) to be RM600 billion (S$225 billion). With the reduction of size by 30 per cent to 1,386 hectares now, the gross development value is around RM450 billion,” Mr Othman told the media yesterday (THURS).

The mixed-development project, which will include residential and commercial lots, is estimated to be completed in 2045.

CGPV said the company had voluntarily stopped its reclamation works earlier to conduct the EIA, in line with its commitment to preserve the environment and to ensure all mitigation measures were in place prior to the recommencement of work.

Mr Othman said that during the construction period, various environmental preservation, safety, health and environment related measures would be implemented according to their EMP to minimise inconvenience to the community and environment.

The measures, he said, included the installation of a double silt curtain and a daily water monitoring system to ensure no major or sustained anomalies were found in the water readings.

CGPV also defended the reclamation work, saying the project was further from Singapore’s maritime border than the Singapore’s own reclamation work in Tuas.

The Sultan of Johor Ibrahim Ismail spoke in defence of the project in an interview published on Wednesday, saying that it would benefit both Malaysians and Singaporeans who find housing in Kuala Lumpur and Singapore too expensive. The ruler added that reclamation was a strategic necessity for the state especially since Singapore has been reclaiming land as early as the 1820s while Johor has yet to do so.

CGPV is expected to make a profit of nearly RM290 billion over the next 30 years through the project.

The company is a 66 per cent - 34 per cent joint venture between China’s Country Garden Holdings Ltd and Esplanade Danga 88 Sdn Bhd, whose main shareholder is the Johor sultan. AGENCIES

Forest City size revised, GDV now cut to RM450bil
NG BEI SHAN The Star 20 Mar 15;

PETALING JAYA: Work at the high-profile Forest City project, which has seen its gross development value (GDV) cut by 25% to RM450bil, has recommenced after a halt since June 16 last year.

The acreage of the development, which has been revised twice, was reduced from its original 1,978ha to 1,386ha, the developer of the project Country Garden Pacificview (CGPV) said in a statement.

With the downsizing, the GDV of the project was expected to decrease to RM450bil from RM600bil initially.

It said construction work on the project had started again after the Department of Environment’s approval on the detailed environmental impact assessment (DEIA) in January and environmental management plan last month.

Its executive director Datuk Md Othman Yusof said the company was confident the project would be completed by 2045.

To recap, CGPV completed the land alienation of the project site in November 2013 and fully paid all land premiums.

The resizing of the project by 354ha was to ensure the sea grass was preserved for future generations while maintaining the flora and fauna of the surrounding area, the company said.

It would preserve a 48.5ha sea grass area to synergise with the existing ecosystem, ensuring the anchorage area is wide enough for ships to sail through and also took consideration of the Port of Tanjung Pelepas’ future expansion plans.

There were earlier allegations that reclamation work between southwest Johor and northwest Singapore had disrupted marine life and affected the livelihood of fishermen. The luxury project consists of four man-made islands of 979 acres, 1,896 acres, 405 acres and 145 acres.

It is a 66:34 joint venture between China-based developer Country Garden Holdings Ltd and Johor state government’s subsidiary company, Kumpulan Prasarana Rakyat Johor.

Othman also said the company was applying for incentives such as tax relief as the project fell under the economic region of Iskandar Malaysia.

The project was currently being funded internally while it did not rule out financing from local or foreign banks, he added.

Forest City developers insist green issues tackled
They say project is on a far smaller scale than reclamation done by S'pore
Shannon Teoh, Malaysia Correspondent, Straits Times 20 Mar 15;

DEVELOPERS of the controversial Forest City reclamation close to the Tuas Second Link insisted yesterday that they have made compromises and concessions to assuage environmental concerns.

Saying that their project is on a far smaller scale than reclamation done by Singapore nearby, Country Garden Pacificview executive director Othman Yusof told reporters that the development was 30 per cent smaller after a Detailed Environmental Impact Assessment (DEIA) and Hydraulic Study, with its gross development value reduced by a quarter to RM450 billion (S$169 billion).

Datuk Othman said Malaysia's Department of Environment recommended that Forest City build at least 1km from the border.

"Even the nearest island to the border is 1.1km away," he said of the plan to build four man-made islands in the Johor Strait just west of the Second Link.

The original 1,978ha project has been mired in controversy because of concerns from the local population, some of whom fish in the strait for a living, and from Singapore, over damage to the marine environment. It was reduced to 1,624ha after a hydraulic study forced the company - in which Johor Sultan Ibrahim Ismail has a significant interest - to split the development into four islands to protect seagrass areas.

The environmental assessment approved in January then reduced it further to 1,386ha, about three times the size of Sentosa island and requiring an estimated investment of RM230 billion. Country Garden Pacificview (CGPV) is 60 per cent owned by one of China's largest property firms, Country Garden, while Esplanade Danga 88 - controlled by the Sultan - holds the remaining 40 per cent.

The company expects to launch its first units for sale by year end, with the first owners moving in around 2020. This is despite delays due to a voluntary halt in June last year, when CGPV chose to await full approvals before continuing work on-site.

However, Forest City's first offerings are likely to enter the market when there is a supply overhang. Some real estate consultants calculate that about 550,000 residential units will be available in southern Johor by 2017, too many for a population of about two million people.

Although the expected timeline for completion of Forest City is 20 to 30 years, CGPV admitted it was carefully studying potential oversupply in its business model.

"We see a lot of oversupply in residentials but... we choose an employment-based model, rather than residential-based," said its business strategy chief Yu Runze, referring to plans to create up to 250,000 jobs in Forest City.

Part of its environment management plan includes mangrove edges and breakwaters, and avoiding dredging until after 2030.