Press Statement
by Dr Tan Seng Giaw

(Kepong, Friday): I issued a statement on 16 June, 2006, after the Parliamentary Public Accounts Committee (PAC) sends a letter requesting the the Works Minister Datuk Seri S. Samy Vellu to attend a special PAC meeting on 22 June, 2006. Samy has been unhappy over the mentioning of RM100 million compensation to the contractor, Gerbang Perdana Sdn Bhd.

At 9.30 a.m. on 22 inst., we shall be waiting for Samy at the Committee Room in Parliament. We hope he will turn up to make intelligible to the PAC the further expenditure after the cancellation of the Johor Scenic Bridge, including the amount of compensation to the contractor for the loss of profits.

The Gerbang Selatan integrated project costs RM2.379 billion, integrated CIQ (Customs, Immigration and Quarantine) building being RM1.266 billion and scenic road and rail bridges RM1.113 billion. After cancelling the Scenic Bridge, the Works Ministry has to proceed with eight scopes of works including the elevated bridge, the one-kilometre permanent link between the causeway with the new CIQ building.

During the special PAC meeting, we expect Samy to tell us the ways to reduce the cost for the remedial works without the Scenic Bridge. For example, the 15-metre high elevated bridge is estimated at RM280 million, connecting roads RM190 million, preliminary works done RM170 million and compensation to the contractor RM100 million. The Claims Committee has its own criteria.

According to usual estimates, every kilometre of a four-lane elevated bridge costs RM20 million, six-lane RM40-50 million and eight-lane RM75 million. In an unusual circumstance, the above-stated eight-lane elevated bridge costs RM280 million. This arouses suspicion. It requires the Works Minister to come personally to cut the Gordian knot.