Penang undersea tunnel won’t be toll-free – contractor

penang traffic

According to the main contractor for the Penang undersea tunnel, the proposed 6.5 km-long passageway will not be toll-free to ensure the Second Penang Bridge (Sultan Abdul Halim Mu’adzam Shah Bridge) wouldn’t experience a reduction in its traffic volume.

In a report by The Star, Consortium Zenith BUCG chairman Datuk Zarul Ahmad Mohd Zulkifliin said, “if the tunnel is toll-free, the Sultan Abdul Halim Mu’adzam Shah Bridge will lose its traffic volume.

“Then the operator of the Second Penang Bridge may claim compensation from the Federal Government. As such, we will match the tunnel’s toll with the bridge to make it equal,” he continued. State Works Committee chairman Lim Hock Seng added that the tunnel toll would be for maintenance, repairs and operations.

The proposed undersea tunnel will therefore have a 30-year toll concession, and the builder would also be receiving payment-in-kind of 110 acres (44.5 ha) of land to reduce the loss of traffic volume to the operator of the Second Penang Bridge.

second-penang-bridge

The payment-in-kind of land is a departure from the standard concession agreement practice, whereby the concession firm is required to fund the project completely and collect toll to recover the investment once the project is completed.

Consortium Zenith BUCG had been awarded the right to build the tunnel and three paired roads on the island to handle future traffic arising from the link between the mainland and the island. The overall cos of the project is around RM6.34 billion, with RM305 million budgeted for project’s feasibility study, detailed design and environmental impact assessment. Meanwhile, RM540 million will be utilised for land acquisition and RM5.5 billion for construction work.

The undersea tunnel is one of the RM6.34 billion mega projects, which include the 4.2 km Gurney Drive-Lebuhraya Tun Dr Lim Chong Eu bypass, the 4.6 km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass and a 12 km road connecting Tanjung Bungah with Teluk Bahang.

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Comments

  • Ini semua salah B…oh wai…

    Like or Dislike: Thumb up 40 Thumb down 41
    • B-Unggul on May 10, 2016 at 7:15 pm

      I thought I can read Periasamy wisdom words regarding this stuff hahaha.

      Like or Dislike: Thumb up 8 Thumb down 1
      • When he saw this, he crawl back to his shell. Isnt that right, Albert?

        Like or Dislike: Thumb up 10 Thumb down 16
      • samesamelor on May 10, 2016 at 7:28 pm

        john = periasamy

        Like or Dislike: Thumb up 10 Thumb down 0
        • DonkeyKong on May 10, 2016 at 9:15 pm

          Pariahsamy is not John, he’s that guy with the username “1MDB etc etc” “Najib etc etc” “Proton 1.5 million TIV bla bla” et cetera. I think he keeps a set of written garbage in Notepad constantly open on his desktop to cut and paste into various comment sections. Well, that’s pretty much how the Red Bean Army and nigerian scammers work.

          Like or Dislike: Thumb up 10 Thumb down 16
          • I oso outed his other dupes here, Albert, Albert Yong (probably his real name), George Abdul, my RBA clonetrooper, perhaps others as well.

            Like or Dislike: Thumb up 7 Thumb down 8
          • Ganesh on May 11, 2016 at 9:34 am

            please refrain from being racist. I also don’t like this samy dude but you should try your best not to be racist and resort to derogatory remarks

            Like or Dislike: Thumb up 8 Thumb down 4
  • Ollie on May 10, 2016 at 5:36 pm

    The proposed undersea tunnel will therefore have a 30-year toll concession, and the builder would also be receiving payment-in-kind of 110 acres (44.5 ha) of land to reduce the loss of traffic volume to the operator of the Second Penang Bridge.

    Huh? Who is bearing the capex of RM6.34 bil firstly. The 30-year toll should provide capex recovery and profit. So why is land being given to the builder when the one losing out would be 2nd Penang Bridge? Who will lose out in the end? 2nd Bridge or the Tunnel? If I’m the first to ask this question the feasibility study costing RM305 mil is worthless.

    Like or Dislike: Thumb up 38 Thumb down 7
    • DonkeyKong on May 10, 2016 at 9:14 pm

      Even funnier is that the feasibility study is being undertaken by the same Consortium Zenith itself.

      So, let’s look at it this way. You’ve been given a RM305 million feasibility study scope, to determine if it’s viable to build an undersea tunnel for over RM6 billion. That’s like your boss paying you 6 months bonus to come up with a report to determine if the company should give you 5 years’ bonus this year.

      Any prizes for guessing what that feasibility study will conclude?

      Like or Dislike: Thumb up 32 Thumb down 2
      • Im gonna be politically incorrect here, its just like being @ss-scr*w*d by a pinkie just to test if something bigger can go in.

        Like or Dislike: Thumb up 8 Thumb down 8
      • Im gonna be politically-incorrect here, its like being @ss-scr*w*d by a pinkie just to test if something bigger can go in.

        Like or Dislike: Thumb up 8 Thumb down 8
    • Jimmy on May 10, 2016 at 9:37 pm

      Is it really necessary?
      Why rm305 million?
      110 acres of land as a payment-in-kind is keterlaluan. No other alternatives? For example extra 5 years of toll collection.
      Who is the one receiving the tanah?
      This is too much.
      You will pay for it.

      Like or Dislike: Thumb up 9 Thumb down 2
    • Ollie on May 12, 2016 at 12:19 am

      You BN monkeys don’t come here with your tongues wagging. Your corruption is worse than anything opposition can do in 100 years. In other situations, the leadership would be publicly humiliated by now.

      Opposition supporters have brains that’s why we ask questions. If we’re not happy we’ll kick them out. Unlike the BN and proton lapdogs who keep holding their master’s hand.

      Like or Dislike: Thumb up 2 Thumb down 5
  • MikeWong on May 10, 2016 at 6:01 pm

    I’m on opposition’s. But I wonder how much did the Penang’s government has sonlap-ed? 1KM costs more than 1 billion ringgit. Really? Why not exaggerate it to 10 billions per KM, Mr. LGE? What’s the difference between you and that biggest culprit of the country?

    Like or Dislike: Thumb up 43 Thumb down 11
    • Are you an engineer? Do you know the real cost to build an underwater tunnel before you say it has sonlap-ed?

      Like or Dislike: Thumb up 30 Thumb down 28
      • But then Part Hard alwiz said SMART tunnel overpriced, KLIA overpriced, Sepang F1 overpriced, KLCC overpriced, 2nd Png bridge overpriced, MRT overpriced, Penggerang overpriced, Iskandar overpriced, Bandar MY overpriced, HSR overpriced, apa-apa pun overpriced

        Like or Dislike: Thumb up 10 Thumb down 14
  • No wonder Malaysia 2nd in world of cronyism!

    Like or Dislike: Thumb up 15 Thumb down 3
  • zerome on May 10, 2016 at 6:26 pm

    politic talk…if u wanna make it free juz make it…dont make a silly excuses…

    Like or Dislike: Thumb up 20 Thumb down 2
    • Ya la. It even funny when they said have to collect toll because they don’t want to reduce the traffic volume at the 2nd bridge.

      Like or Dislike: Thumb up 8 Thumb down 0
  • clair on May 10, 2016 at 6:29 pm

    Pelbagai alasan mampu diberi, termasuklah selepas 30tahun perjanjian. Yang pasti apakah kepentingan ini untuk rakyat?

    Like or Dislike: Thumb up 22 Thumb down 2
  • Painter on May 10, 2016 at 6:29 pm

    Politician doing political talk.

    Like or Dislike: Thumb up 17 Thumb down 1
  • LatukBandar on May 10, 2016 at 6:49 pm

    1. Am confused, isn’t DAP against toll?
    2. I do not live in Penang, is the traffic better after the completion of the 2nd penang bridge? If it is, do we need a tunnel?
    3. They say this is a Closed Tender and not Open Tender, LGE, why? Isn’t DAP against Closed Tender?
    4. Why 30 years? Should it not be Unknown years as in the toll will abolished once they recoup their capital?

    Like or Dislike: Thumb up 51 Thumb down 4
    • Jangan persoal DAP or u r BN lapdog.

      Like or Dislike: Thumb up 20 Thumb down 25
    • Malaysian boyz on May 11, 2016 at 12:50 am

      Traffic might helps due to mostppl working in penang stay at northern area. Eg sg petani, kulim oppose with 2nd link which link to ssouthern part of mainland

      Like or Dislike: Thumb up 4 Thumb down 2
    • komarad on May 11, 2016 at 5:01 pm

      recoup capital only aa?? no profit???

      Like or Dislike: Thumb up 0 Thumb down 0
  • Samesamebutdifferent on May 10, 2016 at 6:55 pm

    Same same but different…semua ade kroni masing2..

    Like or Dislike: Thumb up 30 Thumb down 1
    • But but but… DAP crony is gud crony. BN crony is bad crony. We only said hapuskan (BN) kronism.

      Like or Dislike: Thumb up 17 Thumb down 24
  • what worries me most is that the payment for the tunnel will be made in the form of land. assuming the land value will cover the entire construction (est. around 6 billion ringgit), after few years for sure the land value will increase. How much profit will the constructor will get actually?

    Like or Dislike: Thumb up 10 Thumb down 0
    • DonkeyKong on May 10, 2016 at 9:19 pm

      That plot of prime land is estimated to be worth over RM30 billion in the next two decades based on current trends of price appreciation.. unless a few global recessions happen in between.

      Like or Dislike: Thumb up 9 Thumb down 2
  • Wonda on May 10, 2016 at 8:22 pm

    Same hyprocrites, just different party.

    Giving an excuse like this is lame. I thought this is the party that opposes toll. The party that says they’ll abolish toll if their coalition wins, and the party that demo around toll plazas.

    But once they rule, you’ll see their true colors.

    Like or Dislike: Thumb up 34 Thumb down 0
    • Vincent Ang on May 11, 2016 at 12:08 pm

      The Penang state government CANNOT stop any toll concessions for the decision rest with the FEderal government. What is the Penang state government to do? Give up developing the state altogether? Even the Azmin run government has shares in toll concessionaires. Why don’t people like Donkey Shit bitch about it?

      Like or Dislike: Thumb up 12 Thumb down 15
      • The Penang state govt cannot stop any existing toll, but creating new toll is against what they were fighting all along. And the worse this is, the Federal Govt has never paid or gave lands to any of the highway builder, the builder has to finance the project. And the toll is to get back the money….

        Like or Dislike: Thumb up 9 Thumb down 0
        • Vincent Ang on May 12, 2016 at 8:29 am

          The toll concession CANNOT be granted by the state government of Penang. Therefore, it is IMPOSSIBLE for the Penang state government to create a toll concession.

          Like or Dislike: Thumb up 0 Thumb down 4
  • manamau on May 10, 2016 at 9:16 pm

    nothing is ever free in malaysia, for sure.

    Even baby milk powder is being taxed 6% under GST.

    Like or Dislike: Thumb up 7 Thumb down 12
  • Saitam on May 11, 2016 at 10:04 am

    Aiyoh the second bridge already has close to zero cars, build another again? And why use that as the lame excuse to charge toll for the third?
    Get another 10 ferry je lah and build couple of ports.

    Alternately, use the 6bil to develop Butterworth lah so that the island is not so crowded.

    Like or Dislike: Thumb up 9 Thumb down 0
 

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