It also said that although the feasibility studies for the undersea tunnel project was at its advanced stage of completion, there had been no exchange of lands, land alienation or payments made by the Penang government to Zenith.
It said barring unforeseen circumstances, it expected construction work for the undersea tunnel to start in 2023 and be completed in 2027.
Zenith said in a statement yesterday that it took cognisance of the fact that its capital funding needed to be adequately increased at the appropriate time as the project entered into the construction phase. This had always been part of its financial planning, it said, adding “over-capitalisation at this stage would unnecessarily tie up” its funds.”
The project involves the construction of alternative routes, interconnecting roads, by-passes and interchanges including tunnels within the island and to the mainland. It is part of the Penang Transport Master Plan strategy to relieve traffic congestion.
According to the company’s website, Consortium Zenith, a special-purpose vehicle, was appointed by the Penang government through an open bidding process as the contractor to undertake the three major roads and undersea tunnel project.
The statement was issued yesterday to counter allegations against Zenith and the Penang state government by federal ministers that the cost of the feasibility studies was exorbitant. They also questioned the 30-year no traffic guarantee concession for the undersea tunnel, according to a report in The Edge Financial Daily .
Zenith said it had managed to engage a pool of local and foreign consultants from multiple disciples to carry out various components of the project, including the feasibility studies and detailed design for the undersea tunnel, and detailed environmental impact assessment for the road works.
It said the feasibility studies and detailed design for the undersea tunnel plus the detailed environmental impact assessment for the road works showed it had the financial and technical strength to deliver on its commitments.
The Edge Financial Daily said Zenith’s previous shareholders included Beijing Urban Construction Group Co Ltd (BUCG), and although its stake was less than 1%, the consortium allegedly had a combined paid-up capital of more than RM500 million.
Zenith said the withdrawal of minority shareholders of the consortium, particularly BUCG, “which is purely a corporate decision”, did not impair the financial and technical strength of Zenith.
Zenith also said it had extended its co-operation to the Malaysian Anti-Corruption Commission (MACC) which is investigation alleged irregularities in the project.
Earlier this year, the MACC remanded key people in Zenith, its joint-venture company Ewein Zenith Sdn Bhd (for the development of the land paid by the state for work done so far), and an engineering consultancy firm.