Lim (PH-Air Putih) said as the contractors had been fined RM1.6 million in late charges, it was likely that they would not be able to complete the second phase of the RM247.8 million project on time.

The fine meant that the contractors would likely not be able to make a profit, he said.

“When a contractor is late and there’s no profit, they will not be motivated to complete the project,” the former chief minister told the Penang state assembly.

Earlier, state executive councillor Jason H’ng revealed the project was 52% completed when the progress was supposed to be 82%. He said the contractors were 70 days late.

He said the Penang government had paid RM71.6 million to the main contractor, who was also given an extension to complete the project thrice.

But Lim said if the contractors fell further behind schedule, the state government must consider changing the contractors. However, he emphasised that it should only be a last resort.

Johor-based Teto Engineering Sdn Bhd was selected as the project’s principal contractor.

The project, which covers 11.2ha of reclaimed land off Gurney Drive, comprises Phases One and Two.

The first phase was completed in February, about a year later than scheduled. It first broke ground in May 2022 and was supposed to be completed by March 2023.

The first phase of the project comprises a viewing deck, playground, skate park, kiosks, open-air car parks, and one toilet, with a promenade around the park right next to the sea.

The second phase is supposed to be completed by early 2025. It will include a hawker centre, a multi-level car park, a vantage point, toilets, a water taxi jetty, beach, boardwalk and water garden.

The RM1.6 million fine was imposed for the delay in completing Phase One.

Teto Engineering, in response to the fine imposed, said it had completed the required work following the three extensions given but had requested for a fourth and was not waiting for the request to be approved.