Media statement by Lim Guan Eng in Komtar, George Town on Tuesday, 13^th March 2012: 

The Penang PR state government has chosen to be transparent and accountable in 4 infrastructure projects 

The Penang PR state government has chosen to be transparent and accountable by getting public inputs and consultation over its proposed 4 infrastructure projects to mitigate traffic congestion and spur economic development in the state, especially Seberang Perai Utara(SPU). No public consultation was held by the previous BN government when building the 2nd Penang Bridge. And yet the Penang PR state government is being criticized more severely for being transparent and accountable than the previous BN state government, which had never sought public input or consultation over the 2^nd Penang Bridge.

The PR Penang state government concedes that it has failed to convince some NGOs such as the Consumers Association of Penang (CAP) of the importance of the proposed 4 infrastructure projects to mitigate traffic congestion and spur economic development in SPU specifically and Penang generally. The projects in question are the construction of a 6.5-km Gurney Drive-Bagan Ajam(near Butterworth) undersea tunnel, 15 km road connecting Tanjung Bungah and Teluk Bahang, the 5 km Gurney Drive-Lebuhraya Tun Dr Lim Chong Eu bypass and the 5 km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass.

CAP is not the only organization that has opposed the 4 infrastructure projects. Even BN and Deputy Prime Minister Tan Sri Muhyiddin Yassin has opposed the construction of the undersea tunnel from Gurney Drive to Bagan Ajam on 17 November 2011. However public feedback from Penangites, particularly at Gurney Drive and SPU, shows that an overwhelming majority of Malays, Indians and Chinese support and want these infrastructure projects to proceed.

The Penang state EXCO had decided to undertake these projects by open competitive tender on 19 October 2011 after public consultations were conducted from 29 April 2011. Therefore it is untrue for CAP to claim that the Penang state government had not conducted public consultations.

The Memorandum of Understanding(MOU) signed on 28th April 2011 between Beijing Urban Construction Group(BUCG) and the Penang state government had no legal force as the Penang state government had clearly stated that these projects must be conducted by open competitive tender. That the MOU signing was witnessed by both Malaysia Prime Minister Datuk Seri Najib Tun Razak and China's Prime Minister Wen Jiabao was a positive indication of China’s interest in undertaking these projects in Penang.

Following the MOU signing, the Penang state government had asked for public inputs beginning on 29th April 2011. Two consultative sessions were even held by me directly with the NGOs on 16 October 2011 and 19 November 2011. In both sessions, CAP was represented by Rudhrapathy Vijayala (Ravi). I did not remember Mr Ravi expressing strenuous opposition to the four infrastructure projects at the end of the session.

The PR state government is presently conducting a pre-qualification exercise by open competitive tender for the 4 infrastructure projects to short-list qualified companies with the financial strength, technical expertise, experience and track record to complete the infrastructure projects. No money will be paid, as the 4 projects were to be financed by a land swap from reclaimed land by Tanjung Pinang Development Sdn Bhd(TP).

During the consultative session on 19 November 2011 with the NGOs, I had explained the rationale for coming up with the sea tunnel infrastructure projects to compel Tanjung Pinang Development Sdn Bhd(TP) to surrender as much reclaimed land as possible to the state government. By two agreements signed with the previous BN government in 1990 and 1999, TP was given the right to reclaim 980 acres of land.

Over 200 acres have already been reclaimed by TP, which is now the Straits Quay project. TP has the legal right to reclaim the remaining over 700 acres. For the PR state government to prevent TP from reclaiming land would require payment of enormous sums of compensation to TP.

The only recourse available to the PR state government was to require a sea tunnel and road infrastructure projects as compliance to road traffic requirements to compel TP to surrender as much reclaimed land as possible to the state government. CAP must also bear in mind that TP is now owned by a government-linked corporation(GLC), Sime Darby Bhd.

Unfortunately, the state government had no control over public transport as it is a federal jurisdiction. Much as we want to improve public transport, the Penang state government is helpless to act as this is completely up to the Federal government. All bus services, taxis and trams or LRT are within the powers of the Federal government.

Even when the Penang state government wanted to provide free CAT bus services paid by the state government around the heritage enclave of George Town, the federal government initially rejected the initiative. The Penang state government was willing to pay RM720,000 per year to provide the free CAT bus services, which is very popular with local residents and tourists. Only after intense appeals by the state government directly to the Minister in charge for nearly a year, was the approval finally given for a free CAT bus service paid by the state government.

CAP president SM Mohamed Idris had said that public consultation involves engaging the people at the earliest stage of the decision-making process, providing adequate information about the projects and giving due consideration to the representations and views made by individuals and civil society organisations,”. I would like to humbly remind the veteran CAP President that the very process he outlined was followed in deciding whether or not to proceed with the 4 infrastructure projects.

Only after due consideration, did the Penang PR state government decide to approve the 4 infrastructure projects to reduce traffic congestion to Batu Ferringhi, from Tun Dr Lim Chong Eu Expressway to Gurney Drive and the densely populated areas of Paya Terubong and Relau. As for the sea tunnel, not only would it facilitate communication between the island at Gurney Drive to the mainland at Bagan Ajam, it would also spur economic growth in SPU. The Penang PR state government wants to bring development growth to SPU to dispel vicious lies that the Malays and BN supporters in SPU which is dominated by BN, are neglected or marginalized.

The PR state government is equally concerned about the environmental effects surrounding the construction of the sea tunnel. These environmental concerns will be dealt during the second round of public consultations when the design and route is chosen by end 2012. Even though NGOs such as the CAP has strongly objected to these infrastructure projects, the state government will still engage them by inviting them to the public consultation after the design and the route is chosen. If the state government is not satisfied then, the state government can still reject and refuse to proceed with the infrastructure projects.

According to the schedule for the construction of the projects under the pre-Q exercise, the earliest date for commencement of works on the tunnel is end 2015. This is to allow all the technical, design and environmental studies to be carried out between 2012 and 2015. If the government is not satisfied, the EXCO can refuse to sign the final construction agreement which is the final requirement scheduled for the middle of 2015.

*Lim Guan Eng, Penang Chief Minister