Finance minister Tengku Zafrul Aziz said this was because the government had spent RM221 million on building a cloverleaf interchange and soil stabilisation work in Batu Kawan.

He said Penang had also benefited vastly from the spillover effects of the RM4.5 billion bridge, with rising demand for industrial land in Batu Kawan and the doubling of property prices there.

“In the spirit of federal friendship and cooperation, I urge the state to consider a reduction or, better still, waive the amount altogether,” Tengku Zafrul said in a written reply to Penang chief minister Chow Kon Yeow, who is also Tanjong MP, at the Dewan Rakyat.

Chow had asked when Putrajaya would compensate the Penang Development Corporation (PDC), the owner of the 4ha land used for the bridge and related roads in Batu Maung.

Tengku Zafrul, in his detailed explanation, said 96ha were used for the bridge project, with private landowners already compensated.

He said Jambatan Kedua Sdn Bhd (JKSB), a finance ministry company, was negotiating with PDC to reduce the land costs.

He said a cloverleaf intersection in Batu Kawan has set JKSB back by RM55 million. This was not in the original plans but was done at the insistence of the Penang chief minister at that time.

“There was an understanding between the chief minister and the works minister to upgrade the intersection to disperse traffic better,” he said. However, Tengku Zafrul did not name the chief minister.

He said another RM166 million was spent by JKSB to stabilise the peat land in Batu Kawan, which was swampy and unsuitable for structural work.