The cost of developing the Gurney Wharf waterfront project has increased by 12 per cent to RM200 million.
According to Penang Chief Minister Chow Kon Yeow, the project's cost has been increased by RM24 million to RM200 million and it could rise further in the future due to escalating costs.
The Gurney Wharf project, which will be built on reclaimed land near the state's most famous tourist destination, Gurney Drive, was first mooted six years ago.
Spanning nearly 5km eastward from the foreshore of Gurney Drive, a total of 52 hectares (ha) of land were reclaimed in 2019, with 20ha set aside for Gurney Wharf.
Tanjung Pinang Development Sdn Bhd, a subsidiary of Eastern & Oriental Bhd, reclaimed the foreshore as part of a deal to reclaim Seri Tanjung Pinang (STP) Phase 2 further up north.
Gurney Wharf broke ground last week. Penang Chief Minister Inc owns the project, which is expected to be completed in early 2025.
According to Bernama, Chow said it would become the state's newest attraction, adding economic value and spillover.
"The Gurney Wharf development initiative began in 2016 with engagement sessions with all stakeholders including Penang residents to obtain views, input, and feedback in terms of needs as well as the recreational component required by the community in the state.
"The project will be a promenade with a beautiful sea view and a recreational park, hawker centre, parking, and other facilities for the entire family to spend quality time and for a better quality of life for the people on the whole," he said after the Gurney Wharf ground-breaking ceremony.
Johor-based Teto Engineering Sdn Bhd has been selected as the project's principal contractor.
Work on the landscaping, skate park and playground, maritime engineering, and steel roofing would be done by subcontractors.
"Those involved in the project will protect the environment and marine areas. A traffic flow plan, including pedestrian walkways, is being studied as we expect the wharf to receive high traffic throughout the day. We hope the project, when completed, would be the state's new attraction," Chow said.
Chow said next year would see the completion of a green park, a playground, a skate park, and a viewing deck.
A hawker centre, a multi-story parking garage, a water taxi jetty, and a man-made beach would be built in the next two years.
The Gurney Wharf project supports Penang 2030's vision of a 'Family-Focused Green and Smart that Inspires the Nation.'
State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh in his speech, stated that if not for the Covid-19 outbreak, the project would have been completed by now.
"It is going to happen," he said.