Tunnel project: Guan Eng is ignorant, says Teng

The Penang BN chairman reiterates that it was the tunnel project consortium that said it would not seek compensation if the project is scrapped.

GEORGE TOWN: Penang Barisan Nasional (BN) chairman Teng Chang Yeow today called Chief Minister Lim Guan Eng ignorant for suggesting that Teng should pay the compensation if the RM6.3 billion undersea tunnel and three main roads project are scrapped.

Teng, who is also the state Gerakan chief, expressed shock at Lim’s remark, saying it was the project consortium that stated it would not claim compensation if the project was cancelled.

Yesterday, Lim said if the project was cancelled due to “sabotage by BN and the affected parties make their claim”, he hoped Teng would pay for the state government.

Teng hit back by questioning why the DAP-led state government refused to cancel the contract, despite so many instances of non-compliance by the contractor.

“The minimum paid-up capital of RM381 million had not been met. Similarly, the two companies within the consortium, China Railway Construction Corporation (70%) and Beijing Urban Construction Group (BUCG) (10%), as initially promised, are no longer involved in the project.

“With so many missed deadlines and no construction started five years after the contract was awarded, and tunnel feasibility studies not completed, we wonder why, until today, the state government still refuses to cancel the project,” he said at a press conference.

Lim had explained that there would be no need to pay compensation if it involved a memorandum of understanding, but it was different in this case as a contract had been signed.

Teng had claimed there was a “no compensation” clause in the agreement signed between the contractors and the Penang government.

Teng based his argument on an article published in The Edge on June 15, 2016, which quoted the contractors as saying they would only make claims for work done if the project was cancelled.

Penang BN has promised to cancel the undersea tunnel project, hill site developments and reclamation work in its election manifesto launched last Sunday.

At today’s press conference, Teng also took aim at Lim for the unfulfilled promises to implement a public transportation system for Penang.

He listed down eight different proposals for a public transportation system, made between 2008 and 2016, namely, a tram, an underground mass rapid transit (MRT) system, a monorail linking the island and Butterworth, an aerobus between the island and Butterworth, a light rail transit system (LRT), an LRT and subway, skycab cable car and a cable car.

“Eight such promises were made, but until today not even one has commenced work,” Teng said.

Teng sarcastically suggested that Lim should also propose a high-speed rail line between the island and the mainland.

“After all, you have made eight promises. So what is one more?” he asked. -FMT