Lim, who is a professional accountant, gave a brief presentation of what a bridging facility was and other financial technicalities involving the Penang Transport Master Plan (PTMP).
The PTMP includes roads, light-rail transit and other modes of transport crisscrossing the state.
Lim said the RM27 billion PTMP was to be funded through the reclamation of three islands south of Penang Island.
He said the three islands, however, would take about two years to reclaim and hence, money was needed to kickstart the project in that two-year timeframe.
“The sale of the reclaimed land can only start after year two of the reclamation. During these two years, the costs incurred will be financed through a bridging fund of RM2.3 billion,” Lim told reporters.
Lim said of the RM2.3 billion initial funds needed, the state government’s obligation would be RM1 billion while the PTMP’s project delivery partner’s (PDP) portion would be RM1.3 billion.
He said the state’s RM1 billion would be in the form of a loan from China, while the PDP’s loan of RM1.3 billion would come from a local bank.
The state government recently passed a law allowing it to take a loan from China, which is limited to five years by the federal government.
Penang’s foreign loan also depends on the prime minister’s consent, as per the Federal Constitution.