‘Not unusual for projects to start years after being awarded’

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GEORGE TOWN: The state government said it was not unusual for the Penang undersea tunnel project to start construction in 2023, although the project was awarded in 2013.

Even the two Penang bridges took years to be implemented, said state Public Works, Utilities and Transport Committee chairman Lim Hock Seng.

“The feasibility study and detailed design of the Penang Bridge were done in 1971 but the bridge was only completed in 1982, which was 11 years later.

“The Sultan Abdul Halim Mu’adzam Shah Bridge took eight years, from 2000 to 2008 after the study was conducted,” he said in a press statement yesterday.

Hock Seng was responding to Works Minister Datuk Seri Fadillah Yusof who said it was unusual for any government to award a project that would only start construction a decade into the future, as traffic and environmental conditions, including land uses might change by then.

Responding to Fadillah’s concern on the mode of payment of using pre-determined acreage of prime Penang seaside land based on current value, Hock Seng said the price of the land was set at a future value based on the valuation of the Valuation and Property Services Department.

“The state government has no other financial resources except to swap land as a funding model, to undertake the project.

“If this land swapping funding model is seen as an issue, the state government welcomes the assistance of the Federal Government for monetary funding.

GEORGE TOWN: The state government said it was not unusual for the Penang undersea tunnel project to start construction in 2023, although the project was awarded in 2013.

Even the two Penang bridges took years to be implemented, said state Public Works, Utilities and Transport Committee chairman Lim Hock Seng.

“The feasibility study and detailed design of the Penang Bridge were done in 1971 but the bridge was only completed in 1982, which was 11 years later.

“The Sultan Abdul Halim Mu’adzam Shah Bridge took eight years, from 2000 to 2008 after the study was conducted,” he said in a press statement yesterday.

Hock Seng was responding to Works Minister Datuk Seri Fadillah Yusof who said it was unusual for any government to award a project that would only start construction a decade into the future, as traffic and environmental conditions, including land uses might change by then.

Responding to Fadillah’s concern on the mode of payment of using pre-determined acreage of prime Penang seaside land based on current value, Hock Seng said the price of the land was set at a future value based on the valuation of the Valuation and Property Services Department.

“The state government has no other financial resources except to swap land as a funding model, to undertake the project.

“If this land swapping funding model is seen as an issue, the state government welcomes the assistance of the Federal Government for monetary funding.

“The state government does not give any traffic volume guarantee. If there is any drop in revenue of profits or traffic volume, the state government shall not be liable for any loss that may be incurred, due to lack of use of the link and the 30 years concession period shall not be extended,” he said.

 Meanwhile, Chief Minister Lim Guan Eng yesterday called on Barisan Nasional leaders to prove there was corruption and kickbacks involving millions of ringgit to the state government.

“That there was no abuse of power by Transport Minister Datuk Seri Liow Tiong Lai in getting information from China Railway Construction Corporation Ltd (CRCC) and that Barisan leaders as well as Wee (Datuk Seri Dr Wee Ka Siong) were not sabotaging the project and insinuating that a fashion company is involved in building the three-paired roads and undersea tunnel project.

“Can they prove that I said that CRCC was a shareholder of Consortium Zenith Construction Sdn Bhd and that the state government leaders’ played a role in awarding the contract to Consortium Zenith, when the project was granted through an open competitive tender,” he said at a press conference at Komtar yesterday.

“Can they prove that the agreement, especially the legal commitments by the main contractor, was not stamped and that the additional letter of commitment by the main contractor to ensure the completion of the project, was not legally binding because it was only an appendix to the main agreement,” he asked.

 

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