Media Statement

by Lim Guan Eng

(Petaling Jaya, Thursday): Prime Minister Datuk Seri Abdullah Ahmad Badawi should give answers why the cancellation costs of the scenic half bridge to Singapore costs RM 7 million more than the cost of building the bridge itself. Is this another distressing and costly example of “BN Boleh” where the scenic bridge to Singapore costs RM 1,113 million to build but a higher RM 1,120 million in cancellation costs for compensation to the contractor, road works and land premiums compensation.

According to Parliamentary Public Accounts Committee (PAC) chief and Johor Baru MP Datuk Shahrir Samad, the original cost of the bridge including all the road works and infrastructure was RM 1,113 million. This does not include the cost of the Customs, Immigration and Quarantine (CIQ) Complex that has already been built at cost of RM 1,266 million.    

However the government may have to pay more than the original cost of the bridge as the cancellation costs amount to RM 1,120 million as follows:-

·        RM280 million to build a permanent eight-tiered overhead road connecting the new Customs, Immigration and Quarantine complex in Johor Baru and the Causeway;

·        RM190 million to build other flyovers and connecting roads to the elevated highway;

·        RM170 million for preliminary work done on the project;

·        RM100 million compensation to project contractor Gerbang Perdana Sdn Bhd; and

·        Land premiums for Johor state government at RM 380 million.

Datuk Shahrir had claimed that the cancellation costs are estimated at RM 740 million resulting in savings of RM 373 million as compared to the cost of the bridge of RM 1,113 million. However this is false as Datuk Shahrir has failed to include the cost of land premiums of RM 380 million. Including the land premium for the Johor state government, the cancellation costs amount to RM 1,120 million which is RM 7 million more than the cost of the bridge of RM 1,113 million. Logic suggests that the government should save hundreds of millions from canceling the bridge. It is incredibly foolish for the government to have to lose RM 7 million more at RM 1,120 million from canceling the bridge or higher than the cost of the bridge itself.

DAP can not understand why the contractor can still claim RM 100 million in compensation when it has already been paid RM 170 million for preliminary works done. Obviously the contractor would have profited from the RM 170 million for preliminary works done and to be paid RM 100 million compensation would be like allowing it realize its profits if the scenic half-bridge had been approved.

Further the same contractor had been given the project for both the eight land flyover and connecting roads for RM 470 million without an open tender. Why should the contractor still claim RM 100 million when it will further profit from the RM 470 million raod works obtained without an open tender?

National interest requires the Prime Minister Datuk Seri Abdullah Ahmad Badawi to stand firm in not giving in to the contractor’s exorbitant and unreasonable demands as the public has already lost much from the government’s indecision over the “scenic half-bridge”. The “now you see it, now you don’t” bridge fiasco has cost Malaysians dearly and to allow the contractor to profit from the billion ringgit losses is unacceptable and irresponsible.

During the current difficult economic conditions where inflation is rising following the hike in electricity tariffs and fuel prices, such huge losses is painful to the public as the money could be put to better use in reducing the financial burden of the poor. The government should insist that not only the compensation be reduced but that no one should profit from the cancellation of the scenic bridge that has sparked of a political crisis between UMNO and between former Prime Minister Tun Dr Mahathir Mohamad and Datuk Seri Abdullah..