Virus hits $1b project Fast-track bid to beat pandemic
THE proponents of a $1 billion resort and equestrian centre project near Townsville are reviewing how they deliver their environmental studies to cut upfront costs amid the fallout of the coronavirus pandemic.
But the venturers – led by Malaysia’s multinational Rimbunan Hijau Group – say they are optimistic construction can still begin in 2022 if a “just-intime compliance” approach is achievable.
“Business as usual is over. Regulation as usual needs to change,” project manager Warwick Powell of Resources Capital International said yesterday.
Just-in-time compliance would reduce short-term costs and provide for more targeted studies on stages, he said.
The forestry, media and tourism conglomerate wants to develop the resort – expected to create 5348 direct and 8568 indirect jobs over its 20year construction period – on 440ha of beachfront it owns at Toolakea, 25km north of Townsville.
The State Government’s Coordinator-general has declared it a “co-ordinated project” needing an environmental impact statement, while the Federal Government has determined it a “controlled action” to be assessed under the Environment Protection and Biodiversity Conservation Act.
Proponents say the hospitality and travel industries are among the hardest hit by the COVID-19 outbreak, creating short-term challenges risks for the project.
“The most pressing risk is achieving timely regulatory certainty in a manner that takes into account new commercial realities,” an update says.
“We are reviewing the ways in which we undertake the EIS in light of current conditions and how we can achieve a constructive and workable balance between regulatory obligations and project execution stages.” and
It says legal advisers have been instructed to review regulatory requirements to achieve lawful compliance.
“Should such an approach be achievable, we remain optimistic that ... Stage 1 can proceed on the basis of present timetabling,” the update says.
Stage 1 is to include a 560room hotel, pool and beachfront facilities, equestrian centre, grazing areas, walking tracks, staff accommodation and infrastructure with construction to begin in 2022 for an opening in 2024.
The project is designed to develop into an international resort of 2800 suites and units over 20 to 25 years.
The RH Group is a familyowned conglomerate based in Kuala Lumpur with interests in forestry, hotels, media, property development, agribusiness, aquaculture, commodities trading, plastics manufacturing and information technologies.