Tunnel issue: Well, it's only RM20.54b - so what, indeed

In yet another clownish display, DAP Penang Deputy Chief Minister II P Ramasamy tried to rebut MCA deputy president Wee Ka Siong's findings that the Penang tunnel project will eventually cost the Penang people RM20.54 billion.

This is his statement published on Malaysiakini.

To recap, Wee Ka Siong arrived at this figure based on the following:
(1) + Cost of actual project RM6.34 billion
(2) + 30 years toll RM3 billion
(3) + RM9 billion of infra to support the tunnel SPV's RM15 billion property project.
(4) + 10 years loss of land appreciation of RM2.2 billion for the tunnel portion of the project only starting construction ten years after contract signed.

Ramasamy does not dispute (1) actual direct project cost of RM6.34 billion of course.

However, he disputes that the (2) 30 years toll collections would come out to RM3 billion and said the figures would “need to be scrutinised by financial experts." - despite RM100 million per year being much lower than the current yearly toll collections for the first Penang bridge.

As for number (3), Ramasamy said:

"Again, how on earth he can say that the Penang government would have forked out RM9 billion in state funds to build the necessary infrastructure to support the private initiative of the SPV? Perhaps he could give supporting evidence on how he arrived at this figure rather than simply speculating about the RM9 billion figure he has come out with."

Somehow Ramasamy seems to have missed out this diagram and its repeated explanations from Wee that this comprises of the RM400 million eight lane new Gurney Drive road, the RM7.5 billion 19.5km Pan Island Link Highway (PIL) that cost RM385 million per km and the Gurney Wharf project that cost hundreds of millions which are all to be funded by the Penang state government.

Wee published this twice over the last week on his FB page.

But what really takes the cake is Ramasamy's arrogant and ignorant explanation to number (4), which is the loss of land appreciation.

Firstly, Ramasamy still claims that prime seaside land at Gurney drive only cost RM475psf today.

Anyone from Penang will tell you that this is among the most expensive land in the state and there is no way that this land that the Penang government is paying to the Tunnel SPV will cost so little.

If such state land is still available at such price today, I would like Ramasamy to tell me how the land is available for me to buy.

Secondly, Ramasamy arrogantly said that land appreciation is not the Penang government's fault and so what if at least RM2.2 billion is lost in land appreciation and what is the big deal?

Ramasamy even agreed that Wee's five percent per year calculation for the appreciation for that land which means RM3.6 billion of land may appreciate to RM5.8 billion leaving to RM2.2 billion of loss may be too low - but Ramasamy says this is not the fault of the Penang government.

Well, the big deal and what is the fault of the Penang government is this:

The land is not just worth RM475psf and the state government could easily have kept the land for auction in the year 2023 where they can get full value for the land instead of awarding a strange contract that allows the developers to start construction only 10 years later.

Ramasamy is yet another typical example of the illogical, insulting and arrogant answers that the Penang government dishes out for the Penang tunnel scandal even though they know few people will believe them.

Clearly, DAP is motivated to answer in such a patronising way due to the current support they receive from their supporters.

However, DAP should not take this support for granted that their supporters will still accept your wrong-doings, mismanagement and corruption.

So what, indeed. Not Penang government's fault, indeed.

Well, it's only RM20.54 billion of the Penang people's money. That is what.

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ERIC SEE-TO is BN strategic communications deputy director. -Mkini