Will Penang give away less land if bridge is chosen over tunnel, asks MCA

Will Penang give away less land if bridge is chosen over tunnel, asks MCA

MCA questions 110-acre land swap deal and high feasibility study costs for tunnel and roads project.

Penang had to pay for the undersea tunnel project with 110 acres of land, but with the project likely to be replaced by a bridge, questions are being asked about the cost.
GEORGE TOWN:
Penang’s possible change of plans from an undersea tunnel to a third bridge to link the island to the mainland has got MCA curious about the payments for the project.

The project contractors had suggested a third bridge as a more cost-efficient and environmentally-friendly option.

The project owner, the Penang government, has also said it did not rule out a third bridge option and said the present feasibility study for the tunnel was not applicable for a bridge.

State MCA spokesman Tang Heap Seng, meanwhile, said the Penang government was supposed to pay for the construction of the RM6.3 billion tunnel and roads project by giving up 110 acres of land.

“If the undersea tunnel is to be replaced by a third bridge which may cost only half as much as the tunnel, will the state government still give 110 acres of land to the construction consortium?” he asked in a press conference today.

Tang also asked about the project not being carried out for eight years since the contract was signed in 2013 and the elusive feasibility report which has yet to be made public.

He said the sudden change of tack after eight years is a cause for concern, asking if it was a “big scam” from the start.

“No work has commenced in eight years, but the consortium has obtained RM208 million in land and has made a lot of money by building luxury condominiums there. Was the state government taken for a ride?” he asked.

Tang also asked how land valued at RM208 million was given up by Penang for a feasibility study for the three main road components of the project when such studies usually should not cost more than 1.5% of the project cost. In this case, the three roads cost RM1.99 billion.

“The feasibility study cost of RM208 million accounts for 10% of the project cost, which is nearly 10 times higher than the norm. Can the state government justify this?” he asked.

FMT has contacted Penang officials and the contractors, Consortium Zenith Construction Sdn Bhd (CZC) for comment.

The third bridge idea was first mooted at the state assembly in 2016 by former chief minister Lim Guan Eng, who said the state was willing to build a toll-free bridge at a cost of about RM2 billion if the federal government allowed it.

The state had preferred the undersea tunnel as it would not require any approvals from Putrajaya, while a crossing over the sea would require federal approval.

Then works minister Fadillah Yusof (now senior minister holding the same portfolio) had suspended talks with Penang over the bridge proposal after the state failed to submit relevant documents, which led to back-and-forth statements between him and state leaders.

The 7.2km undersea tunnel was planned to be built from George Town to Butterworth.

Besides the tunnel, three roads were to be built: Air Itam to Tun Dr Lim Chong Eu Expressway (5.7km), Tanjung Bungah to Teluk Bahang (10.53km) and Gurney Drive to Tun Dr Lim Chong Eu Expressway (4.1km).

CZC began work on the 6km road connecting Air Itam to the highway in February. The project is expected to be completed in 2025.

The project was mooted by the Penang government in 2013 to alleviate traffic on the first bridge and to cut down traffic at other congested corridors on the island.

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