PETALING JAYA: The Penang state government has awarded the tender for the underground tunnel linking the island and the mainland and three major highway projects to Consortium Zenith BUCG Sdn Bhd with a land swap and a 30-year concession on the tunnel.
The contractor will undertake the project from the beginning until completion in exchange for the reclaimed land.
The projects involve a 4.2km Gurney Drive-Tun Dr Lim Chong Eu expressway, a 4.6km Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass (four lanes), a 6.5km Penang-Butterworth Tunnel and a 12km road connecting Tanjung Bungah and Teluk Bahang (four lanes).
The concession for the third-link, the underground tunnel, agreed upon is for 30 years and the toll rate must be the same rate as the Second Penang Bridge.
The state government has also stated that there will not be any traffic volume guarantee for the third-link so in this context the state will not undertake any losses that the concessionaire may accumulate in an event of low traffic volume.
The final condition is that no toll charges will be imposed on the other three major highways on the island.
Consortium Zenith BUCG is made up of a local company, Consortium Zenith and China-based Beijing Urban Construction Group (BUCG).