PIC said the extension was approved due to its delay in accepting permission to commence work for section six of the project, as it required a technical evaluation from the Malaysian Highway Authority.

“The granting of the second EOT was made in accordance with Clause 49.1(f) of the contract, which refers to a ‘delay in seeking approval, a permit or permission from any statutory body or local authority’,” it said.

The company also expressed its commitment to completing the remaining works according to the new deadline.

PIC’s statement comes after Guang Ming Daily reported a Penang MCA committee member questioning the delay in the project’s delivery.

The first EOT to Oct 31, 2026 was granted to PIC on Oct 30, 2023 as site works could not commence on schedule due to the land acquisition process required for key routes.

PIC said EOTs were considered and approved only if the contractor could justify the delay with technical evidence, in line with the provisions of the project’s contract.

“The applications for both EOTs underwent thorough checks and consideration by the time extension committee,” it said.

The 6km toll-free bypass will have a 1.8km ground-level stretch, while other stretches will be elevated through viaduct structures (65%), tunnels (20%) and grade sections (15%).

It will comprise three interchanges: Lebuhraya Thean Teik, Jalan Bukit Gambir-Jalan Sultan Azlan Shah Junction and the LCE, which will involve a “left-in, left-out” access and an elevated U-turn.

The RM851 million project is part of the larger RM6.3 billion undersea tunnel and three main roads project.

PIC is a special-purpose vehicle set up by the state government to undertake mega projects in the state, which include the Silicon Island project on the coast of Batu Maung and the Penang Transport Master Plan.