Two heritage bungalows located at the Peel Highway is expected to be demolished for the construction of a private hotel and hospital, claims Penang Citizen Awareness Chant Group (CHANT), on Thursday.

Its advisor Yan Lee said although there was no official statement on the demolition of the buildings, CHANT found that developer had had submitted a planning permission for a piece of land which houses the two buildings.

Yan Lee said the demolition was for proposed extension of Island Hospital and a hotel with 400 rooms.

He claimed that the application to demolish the two heritage buildings and for the construction of a 12-storey hospital, layered parking and underground passage over an area of more than three hectares was sent to the Penang Island City Council (MBPP) last July.

He urged the state government to conduct an impact assessment study of the proposal and engage in public consultations before approving the proposal.

“Again we call for a public consultation on this project with all the people as it is a public land," said Yan Lee.

He also expressed his hope that the Ministry of Health would not easily approve the project just because the Island Hospital has been operating for long and providing health services.

Before this, Penang Chief Minister Lim Guan Eng confirmed that the Peel Highway was given a long-term lease with a value of RM156 million and an agreement with Island Hospital for the proposed development project which was carried out through an open tender.