As reported in The Star on 31 January 2018, Penang Barisan Nasional questioned “whether the State Government paid an extra RM 113mil to the developer for the technical studies of the three paired roads project”. The State Government has numerous times reiterated that the amount paid to the Consortium Zenith Construction Sdn Bhd (CZC) for works done for the feasibility study (FS) and detail design (DD) of the 3 Major Roads component is via land alienation. It was also mentioned via various platforms that the land alienated is based on NET DEVELOPED AREA.
The computation that Mr. Teng Chang Yeow assumed at RM 321 million is based on Gross Developed Area. The State Government would like to clarify the differences between the Gross Developed Area and Net Developed Area as per the Project’s Preliminary Agreement as below :
| Term | Definition | |
| 1. | Gross Developed Area | The total land area including the area provisioned for non-commercial usage (including but not limited to public spaces, roads and amenities) that may be stipulated by the State Government or the Authority. |
| 2. | Net Developed Area | The total land area less the area provisioned for non-commercial usage (including but not limited to public spaces, roads and amenities) that may be stipulated by the State Government or the Authority. |
Clarification on how this computation was made has been clearly stated in the Public Accounts Committee (PAC) Report on Page No.70 which Mr. Teng Chang Yeow has been referring to but failed to mention. To date the State Government has alienated 2 portion of lands that was earmarked for this project as follows :
| Land | Gross Developed Area | Net Developed Area | Value of Land (RM) | Total (RM) |
| Lot 702 | 3.67 acre | 2.3855 acre (minus 35% infrastructure) | 1300 per sq ft | 2.3855 x 43560 x 1300 = 135,086,094.00 |
| Portion of Lot 713 | 2.00 acre | 1.300928622 acre (minus 35% infrastructure) | 1300 per sq ft | 1.3 x 43560 x 1300 = 73, 668, 986.00 |
| Total | 208,755,080.00 |
There is no scandal as alleged by Mr. Teng Chang Yeow. The only scandal is Mr. Teng trying to hide or twist information in the PAC report to slant it against the State Government to smear and tarnish our image in the run up to the coming general elections. There is no discrepancy with regards to the land area provided by YAB Chief Minister or YB Lim Hock Seng as YAB Chief Minister mentioned 3.67 acre Net Developed Area and YB Lim Hock Seng mentioned 5.67 acre. YB Lim Hock Seng, by not mentioning Net Developed Area was clearly referring to Gross Developed Area.
Mr. Teng Chang Yeow also has made an allegation that “the Lot 702 was transferred on 17 February 2015, three months before the studies were completed in May 2015”. The State Government would like to bring to attention of Mr. Teng Chang Yeow that in a typical construction projects, claims are evaluated based on milestone completion or which is also known as progress payment. In this case, first progress payment via land alienation was made on 17 February 2015 for claims on work done for 99% of Feasibility Study and 46% of Detailed Design for the 3 Major Roads component which was evaluated and recommended by State’s appointed Independent Checking Engineer.
Bear in mind that the State Government did not pay a single cent or a single square inch of land for the Undersea Tunnel Project where Feasibility Study is 95.9% completed, because the construction of tunnel project is to be completed much later, expected to be in 2027.