Penang Govt: No money paid for study costs on tunnel

Penang Govt: No money paid for study costs on tunnel

Penang Government says it has only paid the cost for the feasibility and detailed design on three paired roads project.

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GEORGE TOWN:
The cost of the feasibility study and detailed designs for the undersea tunnel project have not been paid yet, Penang Public Works Committee Chairman Lim Hock Seng said today.

He said the state had only paid the cost for the feasibility and detailed design for the three paired roads, which are part of the overall tunnel project.

Lim said the total cost of the feasibility study and detailed design was pegged at RM96.2 million.

“So, the statement by the Chief Minister that not even one sen was paid to the contractors for the feasibility study of the undersea tunnel is true.

“The state government is prepared to take action against those who continue to slander us despite this explanation today,” Lim said at a press conference today.

Yesterday, Penang Gerakan claimed Chief Minister Lim Guan Eng had lied as there were contradictory statements from the latter on the feasibility cost of the undersea tunnel.

State Gerakan Acting Youth Chief Jason Loo had called on the Penang Government to explain the costs incurred for the studies on the RM6.3 billion tunnel.

Lim said the project’s contractor, Consortium Zenith BUCG Sdn Bhd, had only claimed RM138.9 million for feasibility studies and detailed design costs.

He said the Penang Government had paid the contractor in kind, via a piece of land worth RM135 million at Bandar Tanjung Pinang in February last year.

“We still owe the contractor RM3 million for the study costs.”

He said the remainder of the cost would be paid by surrendering a 5.73 acre land worth RM157.9 million. He added another piece of land to pay another RM12 million was being determined.

The breakdown of the cost for the feasibility and detailed design for the undersea tunnel and three main roads’ project are as follows:

Three main roads project:
Feasibility study: RM31.2 million
Detailed design: RM177.4 million
Overall: RM208.7 million

Undersea tunnel:
Feasibility study: RM20 million
Detailed design: RM76.2 million
Overall: RM96.2million

Overall cost for feasibility study and detailed design: RM305,003,880 (or about RM305 million).

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