Penang: The Penang Island City Council (MBPP) has agreed to cancel the Request for Proposal (RFP) for the water taxi service following the failure of the company involved to comply with the Letter of Intent (LoI) by securing all necessary approvals from the Ministry of Transport (MOT).

According to BERNAMA News Agency, State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari stated that the MBPP Procurement Board had issued a cancellation letter to the company on April 17. The state government is currently in discussions with the MOT to review the terms and feasibility of this project in greater detail. Zairil expressed hope that if the RFP is reopened in the future, interested companies will be fully prepared and capable of fulfilling all required conditions.

Zairil explained that two companies had submitted proposals through the RFP, and several presentation sessions were conducted before the RFP Technical Evaluation Committee. Subsequently, MBPP issued a Letter of Intent to the selected company. However, the company was required to obtain further approvals from relevant agencies, including the Marine Department of Malaysia, the Penang Port Commission (SPPP), the District and Land Office, and the Maritime Department, among others, before a letter of acceptance could be issued.

In 2021, MBPP, in collaboration with the state government and other relevant agencies, conducted a preliminary study and identified suitable jetty locations to be used as pick-up and drop-off points, with four locations proposed for the water taxi service.