CZBUCG awaits funding from Penang for RM6.3b infrastructure project studies

KUALA LUMPUR (June 14): Consortium Zenith BUCG Sdn Bhd (CZBUCG) has yet to receive RM100 million for the feasibility studies and detailed design work completed thus far for the RM6.3 billion integrated infrastructure project in Penang.

The amount due includes the 83% feasibility studies done on the 7.2km undersea tunnel connecting Butterworth on the mainland and Gurney Drive on the island, which has been stopped following instructions given by the Penang government about a month ago, said its chairman Datuk Zarul Ahmad Mohd Zulkifli.

Speaking at a press conference, Zarul said the state government has transferred 1.49 hectares of land worth RM135 million to the group.

CZBUCG expects to begin the first phase of the road construction project in September after the preliminary environmental impact assessment for the three highways and land acquisition is approved by the Department of Environment.

Zarul, who addressed the ongoing controversy regarding the RM305 million cost for the studies highlighted by Parti Cinta Malaysia vice president Huan Cheng Guan, said CZBUCG has proceeded with legal action against the latter.

"We have served Huan a notice yesterday for making defamatory statements that have been published in the mainstream newspapers and online news portals.

"Huan insinuated, among others, that CZBUCG breached the gazetted scale of fees for consultancy rates when conducting the feasibility study and detailed design for the undersea tunnel project and three paired roads for making unwarranted profits," he said.

Asked to justify and give a comparison of the cost to similar projects, Zarul declined saying there was nothing to hide but rather the project was awarded based on open tender.

He added that the allegations by Huan and other parties had affected investor confidence.

Meanwhile, a series of public roadshow will kick-off after the Muslim festivities to remind Penangites of the benefit of the three roads.

The projects comprise a 4.2km bypass from Gurney Drive to Lebuhraya Tun Dr Lim Chong Eu, a 4.6km bypass between Lebuhraya Tun Dr Lim Chong Eu and Bandar Baru Air Itam, a 12km paired road from Jalan Tanjung Bungah to Teluk Bahang, and the 7.2km Penang-Butterworth undersea tunnel.

Interested in property investments in Penang after reading this article? Click here to check out the properties there.