News: Penang Government Seeks Federal Support On Mega Projects

Mar 9, 2020

The Penang government seeks to discuss with the new federal administration the financial arrangement for its mega projects, particularly the RM46 billion Penang Transport Master Plan (PTMP).

With the projects progressing as scheduled, the state is “trying to get confirmation from the Federal Government on providing a guarantee for the PTMP’s financial arrangement with the banks,” said Chief Minister Chow Kon Yeow,  reported The Star.

Last year, Penang wrote to the Federal Government appealing for a RM10 billion funding for the Pan Island Link 1 (PIL 1) and the Bayan Lepas light rail transit (LRT), which are part of the RM46 billion PTMP.

Want To Know What The Penang Transport Master Plan (PTMP) Is All About? 

Thus, the issuance of bonds to fund the Bayan Lepas LRT project was proposed by former Prime Minister Tun Dr Mahathir Mohamad.

The RM9 billion LRT line will run from Komtar, pass through Jelutong, Gelugor, Bayan Lepas and the Penang International Airport, and end at the Penang South Reclamation (PSR) near Teluk Kumbar.

The RM9.6 billion PIL 1, on the other hand, is a highway project that will connect Gurney Drive to the airport.

Meanwhile, the PSR is a proposed project that will see the reclamation of 1,821 ha of the sea in order to create three islands south of the airport towards the east around Permatang Damar Laut. The project secured the Environmental Impact Assessment approval, which comes with 72 conditions, in July last year.

On the Penang undersea tunnel, the project under Consortium Zenith Construction Sdn Bhd (CZC) remains in the feasibility studies phase, according to Chow. The 7.2-kilometer project will connect George Town’s Pangkor Road and Bagan Ajam in Butterworth.

It is set to start in 2023 after feasibility studies.

To recall, the concession was won in an open tender by CZC in 2013, with the tunnel’s cost along with the three roads to be paid in kind with 44.5ha site in Gurney Wharf.

Work on the Ayer Itam-Tun Dr Lim Chong Eu Expressway bypass (5.7km) – one of the three paired roads under PTMP – has started recently. There remain two roads in the pipeline – namely, Tanjung Bungah-Teluk Bahang and Jalan Pangkor-Tun Dr Lim Chong Eu Expressway.

 

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Henry Tan
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Aczeon Properties Sdn. Bhd.
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