GEORGE TOWN – Penang must make public the deal it reached with the project delivery partner of its undersea tunnel project, following reports that the firm plans to restructure in view of the current economic uncertainty, said an activist.
Penang Forum exco Khoo Salma Nasution said the people have the right to know details on the project, which has hit numerous snags, as it involves public funds.
Apart from reports on the restructuring, Consortium Zenith Construction Sdn Bhd was also embroiled in controversy over alleged kickbacks, with the Malaysian Anti-Corruption Commission charging former chief minister Lim Guan Eng with soliciting a 10% cut from the profits of the tunnel and its paired roads.
“In the name of transparency and accountability, the public needs to know what is going on with the project,” said Khoo, pointing to the principles of competency, accountability and transparency that the state government has vowed to endorse.
Apart from a groundbreaking ceremony last year for one of the roads under the project, she said, there is no sign of construction taking place.
The deadline has been set for 2035.
Khoo urged the state to disclose how much “exposure” it took in terms of financial obligation to the project.
Zenith is negotiating with three parties about taking on another partner to help it survive the economic downturn and fulfil its contract to deliver the tunnel and roads.
Under the agreement, it must deliver the roads before work on the tunnel begins, with partial payment to be made when the state alienates two parcels of reclaimed land from the Sri Tg Pinang project for Zenith.
The company was awarded the RM6.3 billion tunnel project as it submitted the lowest tender.
The feasibility study and detailed design components will cost RM305 million, and the land acquisition, RM546 million. The balance of RM5.49 billion is for construction.
Seberang Jaya assemblyman and former exco Afif Bahardin voiced support for Penang Forum’s quest for transparency.
“Look, even when I was in the government, I raised the issue of the timeline and how the project can begin.
“I’ve noticed that since last year, nothing has transpired. We have lost one whole year, and there is a need to address this issue.”
Infrastructure exco Zairil Khir Johari, however, said the state cannot interfere in Zenith’s restructuring, as it is a private company.
“We cannot interfere. We will evaluate the project after the delivery partner gets back to us on where they stand. It will take time to see their outlook on the project.”
He said the state remains committed to ensuring every facet of the Penang Transport Master Plan is executed. – The Vibes, October 30, 2020
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