Malaysia

Greenlight obtained for undersea tunnel feasibility study linking island to Butterworth

The proposed project overlaps with the North Butterworth Container Terminal (NBCT) expansion and requires input from various stakeholders, particularly the Penang Port Commission, Nga says.

Updated 1 year ago · Published on 28 Feb 2025 4:10PM

Greenlight obtained for undersea tunnel feasibility study linking island to Butterworth
The project will still take a long time, as it involves multiple stakeholders,” – February 28, 2025

THE Penang government has given the green light to Consortium Zenith Construction to conduct a feasibility study as the company seeks to restructure its plan for the proposed undersea tunnel project linking Penang Island to Butterworth in Seberang Perai, says Chief Minister Chow Kon Yeow.

Asked about the study’s timeline after presenting cheques to mission school representatives at Komtar today, Chow expressed hope that it would be completed within a few months.

“From time to time, they will update the state government. However, the project will still take a long time, as it involves multiple stakeholders,” he said.

Housing and Local Government Minister Nga Kor Ming previously stated that the proposed project overlaps with the North Butterworth Container Terminal (NBCT) expansion and requires input from various stakeholders, particularly the Penang Port Commission.

He also suggested that the project should undergo review by the National Physical Planning Council (NPPC).

Meanwhile, Chow said the Penang government has not been consulted on the potential introduction of congestion charges in George Town, Kuala Lumpur, and Johor Baru.

During the Minister’s Question Time at Dewan Rakyat on Thursday, Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa said the Federal government is studying the mechanism and assessing the potential reduction in traffic volume if such a charge is implemented.

In a related matter, the Kuala Lumpur Sessions Court was informed yesterday that the technical and financial committee responsible for pre-qualifying the tender for the construction of major roads and tunnels in Penang did not involve any political figures, including Lim Guan Eng, who was the Chief Minister at the time.

Zarul Ahmad Mohd Zulkifli, 66, the former director of Consortium Zenith Construction Sdn Bhd (CZCSB), stated that the committee was composed solely of government officials, as reported by Bernama.

He made this statement during cross-examination by lawyer Mohd Haijan Omar, who represents Lim Guan Eng, in the ongoing corruption trial of the former Chief Minister. Lim Guan Eng faces four charges related to the construction of the major roads and undersea tunnel project in the state.

Zarul, who is the 23rd prosecution witness, agreed with the lawyer’s assertion that the committee made its decisions based on the qualifications of the companies involved. However, Zarul said that he was unaware that his company had secured second place in the pre-qualification process.

Zarul further agreed with the lawyer’s point that if another company had scored higher than his company, it would mean that his company did not receive any preferential treatment in the pre-qualification process.

On August 19, 2021, former Penang Exco member Lim Hock Seng informed the court that the pre-qualification advertisement had been published on the state government’s website on November 11, 2011, and in local newspapers on November 15, 2011.

Hock Seng added that a total of eight companies successfully met the pre-qualification criteria, which included China State Construction Engineering Corporation Ltd & VST Cemerlang Sdn Bhd, Setia Precast Sdn Bhd, ECK Construction Sdn Bhd, Gamuda Berhad, Zambina Wawasan Sdn Bhd, IJM-CRGL Joint Ventures, Consortium Zenith BUCG Juteras & Sri Tinggi JV, and WCT Daewoo Joint Ventures.

During the questioning, Zarul agreed that the alignment of the three major roads in Penang did not give him any advantage, as the information about the alignment was publicly available.

When Haijan asked whether Zarul agreed that the alignment of the three roads was included in the 1998 Halcrow Report and accessible to the public, Zarul confirmed with a ‘yes.’

According to the first amended charge, Lim Guan Eng, 64, is accused of using his position as the Chief Minister of Penang to accept a bribe amounting to RM3.3 million by assisting Zarul’s company in being appointed for the construction of the Major Roads and Tunnel Project in Penang, valued at RM6.34 billion. This allegedly took place between January 2011 and August 2017 at the Penang Chief Minister's Office.

Under the second amended charge, Guan Eng is accused of soliciting a 10% bribe from the profit to be earned by Zarul’s company as a fee for helping the business secure the same project near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, between 12:30 AM and 2:00 AM in March 2011.

Guan Eng also faces two other charges for causing two parcels of land owned by the Penang state government, valued at RM208.8 million, to be disposed of to a developer linked to the undersea tunnel project in the state.

These acts are said to have taken place at the Penang Land and Mines Office, Komtar, on February 17, 2015, and March 22, 2017.

The trial, which is being heard before Judge Azura Alwi, continues today.  – February 28, 2025

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