GEORGE TOWN: Despite a hefty RM63 million being spent by the Ministry of Tourism to upgrade the Penang Hill funicular railway, much remains to be done to make the hill resort world-class, according to a senior management of the resort authority.

Penang Hill Corporation (PHC) deputy chairman Datuk Lee Kah Choon said existing facilities on the hill were “ancient” and most of the architecture and infrastructure badly needed upgrading. A further RM43 million is needed to bring the shine back to the resort, he estimated.

Lee said the newly formed PHC would seek funding from the federal government, state government and the private sector to carry out upgrading works on the hill over the next few years.

“The facilities at the hill are not at all ready for an influx of international and local tourists.

“Even the sewage system there can only cater for 400 people and has to be replaced as it has been in place for decades without being upgraded.

“We will have no choice but to find the funding to carry out the upgrading as it would be pointless to have the funicular railway system upgraded but with inadequate facilities.

“PHC is also waiting for the formulation of a master plan to guide to the hill development.

“This way, the development anticipated to take place can be regulated and monitored,” Lee said at a press conference yesterday.

The upgrading works on the funicular railway, which began in February this year, will be completed by the end of November this year and the trains will be operational next January.
Lee said even the base, middle and top stations were not being fully upgraded due to the lack of funds.

“Only RM1.2 million has been allocated by the federal government for partial upgrading even though more than RM3 million is needed to fully upgrade the existing facilities,” Lee said.

Despite the shortfall, Lee said in anticipation of the funicular railway being fully operational next year, PHC with several other state agencies, private bodies and individuals have already done some development works at the hilltop.

Requests for proposals had been sent out and tenders called to redevelop the Craig Hotel. Other projects include a canopy walkway, construction of a new visitor centre and hawker’s complex, new plant nursery, trails and paths for nature walks and proposals to refurbish existing state-owned bungalows and quarters on the hill which are currently in a deplorable condition.

The PHC was set up in line with the state’s bid to promote the hill as an international tourism destination.

The PHC, chaired by Chief Minister Lim Guan Eng, is empowered to enter into contracts and acquire properties as well as assign, transfer and dispose of any movable or immovable property.

The PHC will also manage, operate, supervise and maintain the services, promote and encourage economic, social and infrastructure, develop and manage the area, conduct R&D on related activities in efforts to redevelop Penang Hill and conduct beneficial activities.

The PHC is also tasked to redevelop Penang Hill based on the concept of green and sustainable living.

This article appeared in The Edge Financial Daily, October 7, 2010.