Malaysia

Doubts over Penang’s multi-billion undersea tunnel

It is learnt that officials are now deliberating on an overhead bridge rather than an undersea tunnel due to cost factors and the hinderance to shipping lanes

Updated 1 year ago · Published on 26 May 2025 12:53PM

Doubts over Penang’s multi-billion undersea tunnel
Chow also cited land preparation issues among the concerns - May 26, 2025

by Ian McIntyre

THE proposed RM6.3 billion cross-channel undersea tunnel is likely to remain a dream as officials linked to the project conceded that the best option now remains an overhead bridge along the same route of Gurney Drive to Bagan Ajam.

It is learnt that officials are now deliberating on an overhead bridge rather than an undersea tunnel due to cost factors and the hinderance to shipping lanes of Penang Port - the oldest port in the country.

Additionally, the undersea tunnel is mired with concerns of environmental degradation of the channel which separates the island with mainland Prai besides the cost factor which has escalated from when it was once proposed in 2011.

This is because a new design is needed as the route is in the way of the Penang Port expansion drive and other reclamation projects.

During last week’s state legislative sitting, state executive councilor Zairil Khir Johari, who oversees infrastructure divulged that the suggestion to switch from an undersea tunnel to a bridge remains a proposal submitted by the concessionaire - Consortium Zenith Construction Sdn Bhd, which is led by the ECK Construction Group.

Penang forum representative Ir Lim Thean Heng said that the project needs to be scrapped in totality due to its costs, environmental threat and whether the project delivery partner is financially viable or legally qualified to execute the project.

“The state government reserves the right to determine the project’s implementation based on the outcome of the ongoing feasibility study. We have indeed held discussions with the concessionaire to explore several possibilities following the necessary studies. These discussions are also subject to external factors. Penang will give sufficient time to the concession company to complete the feasibility study."

Penang currently has two overhead bridges linking the island to the mainland although the second link from Bayan Lepas to Batu Kawan, is believed to be much lower in its use compared to the main one from Gelugor to Butterworth.

Previously, it was reported that the undersea tunnel project is facing a major design change as its alignment clashes with the Butterworth port expansion and a recreational park.

Chief Minister Chow Kon Yeow said the state had given the project’s contractor, Consortium Zenith, a few months to come up with a new design and feasibility study.

The project first proposed in 2011 has faced repeated delays although one of the three highways linked to the project, is now under construction.

The second road - the 10km North Coast Paired Road linking Tanjung Bungah to Batu Ferringhi and Teluk Bahang, is now undergoing preliminary preparations whereas the third project from Gurney Drive to the Tun Dr Lim Chong Eu Expressway remains in the planning stage.

Chow also cited land preparation issues, as the state government’s payment to contractors, in the form of reclaimed land, was not yet ready.

“We must align the construction timeline with the availability of the reclaimed land, which we will use to pay our contractors. If the land is not ready, we cannot make the necessary payments, which would also create difficulties for the contractors. Therefore, proper scheduling is crucial,” he said.

One road component – the highway bypass linking Air Itam to the expressway has begun and it is said to be 70% completed  - ahead of schedule. - May 26, 2025.

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