Monday, January 4, 2010

Penang under Lim Guan Eng

From Anil Netto

Why I am against the Penang convention centre

The proposal for a Penang International Convention Centre is already moving, but I dare say a large majority of Penangites are unaware of it.

This artist impression of the convention centre doesn’t show how close it will be to the existing Penang International Sports Arena (Pisa).

In fact, the public have been given until 8 January 2010 to submit their opinions and views – and that’s it for the consultation.

The Bayan Baru Residents Association has already registered its objection in a letter to the press. You can submit your views to the Penang Municipal Council or you can email your views to riduan@mppp.gov.my before the deadline expires.

Personally, I am against the project, which is expected to cost RM50 million (and that’s just an estimate). The money is expected to come out of the precious funds of the Council, which has budgeted a deficit of RM40 million in 2010 on the back of revenue of RM230 million (two thirds of which is raised from assessments/taxes). The Council has allocated RM30 million for the convention centre in 2010 and a further RM20 million is expected to be incurred in 2011.

Why Penang doesn’t need a convention centre like this built with public funds:

  • Has there been a traffic impact study for the project?
  • Parking could be nightmarish as there are inadequate parking lots. Just look what happens during the computer fair, when people park all over the place.
  • The new convention centre is to be built right smack in front of Pisa. During construction, Pisa’s operations will be affected. And after construction, Pisa’s own business and utilisation will probably take a hit.
  • The new convention centre is unlikely to be heavily utilised. What is the cost-benefit of the project? Where is the financial rationale?
  • Why not just upgrade Pisa and be done with it.

Spending RM50 million on a convention centre would be a terrible waste of the Council’s limited funds, contributed by rate-payers. All this while, the Council has been scrimping on other essential projects. The money saved on the convention centre project could be better used for the following:

  • Upgrading existing public markets and building new Council markets in places like Batu Maung and Teluk Kumbar.
  • Improving pavements and disabled access around Penang.
  • Upgrading and repairing old drains that are in poor condition.
  • Upgrading and installing modern public toilets on the island, especially in George Town. The state of a city’s public toilets tells you a lot about the place.
  • Beefing up Council enforcement units to improve cleanliness and reduce congestion. This heightened visibility would have the indirect spin-off of deterring street crime.
  • Upgrading the Council’s entire computer system, which I am told is “archaic”.
  • Initiating its own heritage conservation projects, now that the federal government has denied the Penang local government its rightful allocation of funds for heritage conservation (and instead channelled it via Khazanah Penang).

And that’s just a sample of things it could do with that kind of money. So apart from the actual money spent, we have to think of the above ‘opportunity costs’ – the things we could have done with the money if not for this project.

SH Tan

Anil:

I have written a complaint through the Star letters column on Nov 26 but it was not posted. Below is the letter.

==========================================================
It appears that the Penang State Government is adamant in going ahead to build the multi-million ringgit “international” convention centre at the Penang International Sports Arena (PISA) venue (“Open tender for RM50 mil convention centre”, StarMetro North, 26 Nov 2009). There are several pertinent questions which I hope the State Government will come forward to clarify.

Is the RM50 million project funding coming from the MPPP coffers which was reported it will be running at a deficit of RM40 million in 2010? The Penang International Sports Arena built in 2000 has been a dismal failure in organising and hosting international sports events. Apart from its swimming pool (which was not even built to international standards), there are practically no sporting events held there. The only “success” it can boasts of is its hosting of several Matta Fairs, PC Fairs and Food Fairs several times a year. Is this the justification that the State Government sees as a need for an “international” convention centre in Penang?

The Penang International Sports Arena is now a misnomer and will it be renamed to be the Penang International Convention Centre since no major sporting event has been held there for the last few years?

The Pesta Pulau Pinang expo site in Sungai Nibong was built in the late 60’s and has now outlived its purpose. The site is now shared with tour buses as a transport hub. The expo is still being touted as one of the major events in the annual Pesta Pulau Pinang calender after more than 30 years. It is actually nothing more than a big scale pasar malam. The present Pesta expo site is currently used only about 30 days in a year during December for the Peasta Pulau Pinang. Has the State Government considered upgrading and rebranding the present Pesta expo site rather than building another convention centre less than 5 km away.

The PISA is in a shameful state of disrepair and poor maintenance. The internal and external looks shabby and worn, the ground is unkempt and dirty, the road in front of the main foyer is potholed, the seminar rooms do not have air conditioning, the stadium seats are broken and tiles at the bottom of the swimming pool are cracked and broken. There is a car wash centre, several furniture shops, a food catering company, a private training centre and a car accessory shop occupying this International Sports Arena premises. Why is the State Government allowing the PISA to degrade to this stage by not providing funds to upgrade it but rather spend millions to build another spanking new convention centre beside it?

I hope the MPPP and the State Government will come out to clarify these points in the name of competency, accountability and transparency.

SH Tan

And below is my most recent feedback to the MPPP En. Riduan.

==================================================

I refer the the Star North report on 19 Dec 2009 (“Opinion on PICC sought”) in which CM Lim Guan Eng asked for feedback and inputs on the PICC. Below are several questions which I hope you will answer:

- who is funding the RM50mil construction of the PICC?
- If the State is funding the construction of the PICC, what is the financial justification for it on the back of a reported RM40mil projected State budget deficit in 2010? I would like to remind the present State Govt. that the MPSP (then under the BN) was near bankrupt in 2008 mainly due to the RM80mil funding of the construction of its HQ in Bandar Perda. The DAP was very vocal and against it at that time.
- why was East Design Architect retained as the consultant?
- Will an open tender be called for the construction of the PICC?
- how is the PISA and PICC going to cater for the larger crowd of tens of thousands of visitors during the major fairs like PC Fair and MATTA Fair with only 1800 available parking lots? Assuming an average car occupancy of 3 persons per car, the 1800 parking lots can only cater for 5400 visitors at any one time. There will be a spill-over of 2x to 3x in parking capacity.
- with a new spanking PICC built next to the PISA, will the PISA be upgraded and maintained to bring it to international standard again. If yes, how much is the budgeted repair and maintenance cost? The present PISA is in a terrible state of disrepair and non-maintenance.
- what are the traffic dispersal plans for the area with the increased traffic volume from the new PICC and residential/commercial development around the area?

27 comments:

  1. Do you know that the architect takde lesen?

    It's DAP cronyism to the baddest degree.

    ReplyDelete
  2. Please sign the petition at www.petitiononline.com/picc2010/petition.html if you think that Lim Guan Eng is doing a bad thing to Penang.

    More information regarding this matter can be seen from http://anilnetto.com/accountability/can-the-penang-govt-direct-mppp-to-build-picc/

    ReplyDelete
  3. Anon 5:09

    Give me chance lah , I am going to post that tomorrow , but you always tak give me chance ..alamak you always want to beat me to it !

    ReplyDelete
  4. MCA should take the lead of BN in Penang. Gerakan is not doing any thing. MCA should appoint new leadership there instead of Liow or is it Wee. The time is ripe for a good MCA leader there.

    ReplyDelete
  5. Pls do not put tje bl;ame on LTL or Wee and any other from the opposite camp. It was OTK who screwed up the Penang MCA for appointing Ong Seah Wen.

    There was a battle betwwen Lui, Hong (he has gone disappeared). and 2 ols chaps..... already worst than sam kok. To inttroduce Ong Sia Wen is the worst thing in politics.

    ReplyDelete
  6. MCA UNDER OTK WITH DEPUTY CSL....WHO IS AS QUIET AS A CHURCH MOUSE ON MAJOR ISSUE.....

    ReplyDelete
  7. These are the voice of the Penangites:

    "Instead of looking to built a new international convention centre, the state govement should looking into maximizing the usage of PISA"

    "This Convention center does not serve any purpose and is a misuse of our state fund."

    "the design also lack sufficient storage space, working and staging areas pre and post exhibition, the kitchen will be toosmall to cater for any banquet function; the F and B support will be totally inadequate for a forseeable large mcrowd or even to cater to the exhibitors; no one will come to a convenction centre without efficient supporting infrastructure and entertainment outlets sizable to cater for the crowd; cannot develop covention cent re as an isolated evevnt centre.... All these and many more things need to be provided, be competent and transparent."

    "There is no rush for PICC now, even if any study says that its good for Penang. With limited financial Penang has, there are many Rakyat centric project you can spend the funds on, like take good care of Penang's heritage buildings. We gives you one chance, use this 1 chance for urgent thing."

    "Please clean up and improve existing infrastructure instead of wasting money on another white elephant"

    "If the Govt. is by the people, for the people then it must listen to the people"

    "PICC stands for Project to Increase Cronies' Coffers. Stop this monstrous waste of our monies."

    "No use putting up physical structure when Penang does not have the necessary service infrastructure and mentality to support MICE."

    "Don't waste public fund, we got inflation going on as everything is increasing. Please do the needful."

    "I strongly agree that if no proper planning and management on the huge influx of visitors to this area, the project is deemed to be a failure and lost to taxpayers' money. We don't want another white elephant in Penang which is high cost in management and projects bad management of the state government."

    ReplyDelete
  8. "Last time was Tiger Park at Relau now PICC in Relau and so No Plastic Day for Monday but now extend to three days a week later I think He (CM) will declared Penang as Independent state as well."

    "Shouldnt it will be another White Elephant project?? Talking about PISA, it stood for Penang International Sports Arena. But how was it look like nowadays?? It have been "used" more for commercial purpose which gains more profit for the privatised organisation. Sports was hardly held there. Should it renamed to PICA, Penang International Commercial Arena!! Mr CM, please do consider for the people of Penang."

    "It it unnecessary due to lack of events organizing and un-utilised of PISA"

    "Dear CM, Have you ever driven around Relau or tried to find a parking around there? Kindly try that out first before deciding."

    "Does not make any sense to build this covention center as even with the current PC fair, the parking space, traffic is horrible in that area."

    "the govt should improve and maximise use of existing facilities instead of building another 'GAJAH PUTIH' project."

    "Instead of looking to built a new international convention centre, the state govement should looking into maximizing the usage of PISA"

    "Why the rush to fast track it? CAT please."

    "it's better to find a better location, if we really needs a convention centre where parking and accessibility is convenients."

    "A project for cronies....while a convention center may be needed in Penang, the PICC was proposed without detailed feasibility study and the request for feedback from public is a political gimmick."

    ReplyDelete
  9. "I too fail to see the necessity of a convention centre for Penang. What kind of mammoth conventions the MPPP hopes to attract with this centre?"

    "You can have very decent conferences in hotels. Exhibitions are another matter altogether. You will require specialized facilities. The question the Penang govt must ask is who do they intend to attract? Which industry? Are these events sustainable, repeatable? Do we have sufficient infrastructure to support large events? Does the government have a marketing program lined up to fill the halls? This is not the era where ‘they will come if you build it’, and answer a whole lot of other very expensive if-you-get-it-wrong questions and when that happens we will have to figure out what to do with another white elephant."

    "LGE is desperate to show off. He think he can. The truth is he know nothing. He claimed that he save money for Penang but want to waste our money on a project that he himself is convinced will not bring financial return to the state government. There are better convention centers else where what make LGE think that with this new convention center more exhibition will be held in Penang?"

    "Agree, upgrading existing convention facilities like in Pesta would cost less, after all, Pesta is under utilised from January to October. The economy is bad, is this where all the money the state government said it saved from reducing administration expenditure going to?"

    "I am quite disappointed the development was not that well publicised to ensure better input from the people."

    "I am against the location. The PISA is too tight for a PICC (‘international’). I believe originally PISA was built for recreation and sport purpose, but now even with car accessories shop and furniture shops occupied car parks lock, car wash, catering outlets and others. It can be very ‘rojak’ eventually. The PISA is underutilised since it was completed."

    ReplyDelete
  10. "The State Govt has shown an apparent attempt to be seen as transparent and accountable by asking for public feedback. Let’s hope this is not a PR prank to whitewash and say there are only a few objections from the Rakyat. To date, there are only 9 formal feedbacks to MPPP. Let us continue to get our voices be heard and insist that all valid objections and questions be fully addressed before they approve this project. The RM50mil that MPPP is going to spend is OUR money. Let us have a say in how they are going to spend OUR money."

    "What was our aim in kicking Koh Tsu Koon out?

    Wasn’t that because we don’t want wastage anymore?

    Wasn’t that because we are tired of white elephants?

    Wasn’t that because we won’t allow any misuse of public fund anymore?

    If we allow Lim Guan Eng in wasting the 50 Mn ringgit to build this mini-convention hall, how sure are you that this will be the one and only white elephant from LGE?
    "

    "Where is the market study, cash flow estimates, economic impact analysis?

    No information what so ever regarding the physical site inspection? Any analysis of local and regional economic and demographic information? Any discussion with local area and regional hotel/conference center operators? Is there any gathering and compilation of data from national convention industry research firms and publications? Any discussion with representatives of hotel and convention center management companies?

    Without analyses that based on estimates, assumption and other research of the market, knowledge of the industry, information regarding the project, how on earth the public, MPPP going to comment and participate of the decision making? This is purely a decision of a single individual who has no knowledge of the industry.
    LGE totally disregard our right to know when he make the decision to build the PICC.
    "

    "What are the legal, engineering and regulatory requirements applicable to the project, including zoning, and other state and local government regulations, permits and licenses. Is there any effort being made to determine the possible effect of the project on PISA, present, and future federal, state and local legislation, including environmental or ecological matters, compliance with Manual Saliran Mesra Alam or interpretation thereof?"

    "We need the state government to conduct market study based on the following methods:

    * 1) Identifying local and regional competitive supply and comparable convention centers throughout the nation

    * 2) Identifying and interviewing sources of demand

    * 3) Identifying and characterising samples of potential users of convention facilities in the nation and neighboring nations.

    * 4) Interviewing and gathering relevant data from various government entities and research firms and publications
    "

    "The state government need to analyse the potential market support. Is there any upscale, full service, chain affiliated hotel with sufficient guest rooms and more than adequate meeting space in the neighborhood?"

    "The place at PISA is simply awkward.

    1. There is NO other places to build more supporting buildings for the convention hall.

    2. The empty lot in the PISA complex is simply too small to build a sizable convention hall.

    3. The traffic around the PISA, aaaarrrggghhh … do you want me to say more?

    And most importantly,

    4. Where are the convention goers going to stay?

    No matter if you go to Dallas or Shanghai or Toronto or Sydney, within walking distance (usually within 10 blocks) of their main convention hall they have at least 5 hotels.

    Yes, LIMA.

    Which means, the participants can attend a convention in the morning, listen to the various keynote speeches, get tired, walk back to their hotel room, rest.

    After a nap and a shower they come out again, walk back to the convention center and continue.

    Can you see this happening in and around PISA?
    "

    ReplyDelete
  11. To sign the petition against wasting RM 50 Mn, please visit:

    http://www.petitiononline.com/picc2010/petition.html

    ReplyDelete
  12. Another voice of the Penangites can be found at:

    http://www.themalaysianinsider.com/index.php/opinion/breaking-views/48334-picc-monument-of-lim-guan-eng--ong-eu-soon

    ReplyDelete
  13. LGE is turning Penang into a Commercial City lah.... If you think this is a waste of 50M, pls visit Putrajaya CC. This PICC idea and concept may be good, provided the traffic issues are solved. Next will be the management and maintenance and of course the purpose of its existence - to lure more trade exhibitions to Penang and make more money.

    Please look at the Positive sides and as for the negative sides - Penang gov. should minimise the negative impact and try turn them to the positive side.

    LA

    ReplyDelete
  14. What be end is doing to Putrajaya has nothing to do with what Lim Guan Eng is about to do in Pisa.

    Stop mixing up two totally different thing.

    Lim Guan Eng is going to waste the 50 Mn and we Penangites will not let him do it.

    Plus we do not need Lim Guan Eng's help to turn Penang into a commercial city.

    We have done it ourselves, long time ago, without his help.

    ReplyDelete
  15. What is there to jump about the Convention Centre?
    RM50m is nothing to compare with the lost RM100m engines and the lost billions in PKFZ, and many other billions lost in other projects.
    At lease the Convention Centre will stands in Penang and will be of good use.

    ReplyDelete
  16. So you think it is right for Lim Guan Eng to waste 50 Mn just because some people stole 100 Mn worth of fighter jet engine?

    So you think it is okay for you to rob from some old grandma just because some other people rob more money from the bank?

    What is wrong with you guys? Tak boleh fikir?

    ReplyDelete
  17. So you guys, what do you want LGE to do??!!! Sit there an wait for your BN gov to give Penang the development budget rightfully belong to Penang??!!! You have raise your concerns - let him response. Aniel has poited out some concerns - let's look at the positive side. Minimise those things that may go wrong. If Penang is not turned into "Commercial City" or Tourist City what else you think is good for Penang.

    For anon 7:42 - wasting RM50M is not acceptable, but how do you know it is going to be wasted if precautious actions are being taken. the engines issues are terang-terang gone deal.

    As for the Putrajaya CC, pls visit first that you talk. Otherwise, you are labelled as Anti PR and pro Gerakan.

    As for us, Gerakan had his days and failed to deliver. I did not kick them out, it is the Penang people. Period.


    LA

    ReplyDelete
  18. Who asked Lim Guan Eng to sit there?

    We didn't vote him to sit there.

    We voted for LGE to make Penang better.

    Making Penang better doesn't mean building a convention center designed by someone who had no experience in convention center design.

    ReplyDelete
  19. To criticize is easy but to serve and deliver is tough. LGE should now realize that he is now the CM of Penang and should ponder hard of what he had said prior to 308.

    ReplyDelete
  20. If serving is so difficult Lim Guan Eng is free to leave.

    No one will stop him.

    If Tan Sri Khalid Ibrahim can do such a wonderful job in Selangor, a much bigger state than Penang, wonder why Lim Guan Eng performs so poorly in the tiny state of Penang?

    ReplyDelete
  21. How come Lim Guan Eng never commit suicide one?

    His team member from DAP tried commit suicide yesterday.

    Lim Guan Eng no balls ah? Commit suicide pun tak berani?

    ReplyDelete
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