Lim, who is also chief minister, rebutted Penang BN chief Teng Chang Yeow’s remarks, calling it strange.
“He said no compensation has to be paid if the project is cancelled by BN, as stated in their manifesto.
“If that is the case, if we have to cancel the project because of sabotage by BN, and the affected parties make their claim, I hope he can pay for the state government.
“I don’t understand where he gets his information from that no compensation has to be paid.
“If it’s an MoU then it is possible. But this is not an MoU. This is a contract,” he said at a press conference today.
Lim continued his tirade against BN, saying the coalition had no concrete suggestions on how to tackle traffic congestion in Penang but was instead bent on sabotaging the state’s efforts.
“Let the people decide (at GE14) if they want such infrastructure projects to be sabotaged and cancelled.”
Teng had claimed there was a “no compensation” clause in the agreement signed between the contractors and the Penang government.
Teng had reportedly based his remarks on an article published in The Edge on June 15, 2016, quoting the contractors who said they would only make claims for work done if the project was cancelled.
“Now, there is no work on the tunnel. The chief minister himself said the work will begin in 2027. So, if BN cancels it, there is no compensation to be paid,” Teng said yesterday.
Chow Kon Yeow, who is state local government, traffic management, and flood mitigation committee chairman, said when the consortium awarded the project and complied with all the conditions of the preliminary agreement, and had secured all approvals from the relevant agencies, it was incumbent on the state government to enter into the final agreement, which was the construction agreement.
“If they comply with everything, what does the state government do?
“The state government has to enter into the final construction agreement.
“We cannot say we don’t want to enter into the agreement.
“If you fail to do so, the issue of compensation will arise,” Chow said.
Penang BN had made a promise to cancel the undersea tunnel project, hill site developments and reclamation work in its election manifesto launched last Sunday.
The infrastructure project came under renewed scrutiny by the BN following a fresh probe by the Malaysian Anti-Corruption Commission (MACC).
The 7.2km undersea tunnel will connect George Town’s Pangkor Road and Bagan Ajam in Butterworth. It is scheduled to begin in 2023.
The three main roads, connected to the tunnel project, stretch from Air Itam to the Tun Dr Lim Chong Eu Expressway (5.7km), Tanjung Bungah to Teluk Bahang (10.53km), and Jalan Pangkor-Gurney Drive junction to Tun Dr Lim Chong Eu Expressway (4.1km).