25 July 2017

Press statement by MCA Youth Treasurer Datuk Michael Lee


What alternatives are there to the Penang Govt building Malaysia's most expensive highway by far?

I thank Penang Exco for Local Government and Traffic Management YB Chow Kon Yeow for issuing a press statement yesterday to clarify that the RM8.4 billion cost of the Penang Komtar-Bayan lepas LRT project has not increased but now includes land acquisition cost as compared to the RM7 billion figure quoted previously.


However, YB Chow's statement also disclosed that the construction cost of the 19.5km Pan Island Link 1 (PIL-1) will come up to RM7.5 billion.

This is equivalent to a staggering cost of RM385mil per km - easily the most expensive highway in Malaysia by far.

This cost is 140% more than the RM161mil per km cost of the planned Kinrara-Damansara Expressway (KIDEX) in Selangor which DAP elected representatives 3 years ago, claimed was the most expensive highway in Malaysia.

MCA Penang had raised concerns that this huge RM7.5b cost for just one 19.5km highway will eventually be borne by Penangites.

Has the state government consulted with the Federal Public Works Department (JKR) on alternatives with a lower cost?

Previously, the Penang state government confirmed it had already paid RM220mi in consultancy fees for reports on 3 totaling 20km with a construction cost of RM2 billion despite the fact that none of these roads in the planned undersea tunnel had even started construction yet.

As the state government has the habit of substantially overpaying consultancy costs, can they disclose how much do the reports for this RM7.5 billion highway cost?

How much will the Penang state Government be borrowing from China or other banks to fund this RM7.5 billion highway as well as the RM8.4 billion LRT?

It seems that Pakatan's mega infrastructure projects - especially those in Penang - cost substantially higher than similar projects by the Federal Government. Why is this so?

 

Datuk Michael Lee Beng Seng
MCA Youth Treasurer
MCA Youth Penang Chairman

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