Stop Penang Transport Master Plan
Dear Sirs,
While the move to review all mega infrastructure projects is laudable, it is imperative for the Pakatan Harapan government to review the RM46 billion Penang Transport Master Plan project.
Penang Transport Master Plan project is a mega infrastructure project that is to be funded by land swap deal. A land swap deal is a tool that empowers the MBPP to trade reclaimed land with a private funded infrastructure project.
About RM19 billion is earmarked to be use for the funding of land reclamation at the southern coast of Penang island.
The proposed reclamation project includes the creation of two man-made islands off the coast, of about 2,000 acres and 1,300 acres respectively, and later another island covering 800 acres.
Total acreage of the reclaimed land will be 4100 acres or 1698 ha at the expense of RM19 billion.
The areas of 4100 acres is 178596000 square feet or 16592126 per square meter.
The cost of reclamation is RM106.39 per square feet or RM1145.12 per square meter.
At a dredging depth of 5 meter, the cost is RM 229.02 per cubic meter.
This cost is really exorbitant if we compare it to the reclamation cost of other projects as in table 1.
The land reclamation project was awarded to crony of certain politicians without open tender.
Since Pakatan Harapan pledges to fight corruption to its root, I would like to bring your attention to The Grand Scheme of Stealing Billions by Lim Guan Eng.
Now is the opportunity for Pakatan Harapan to show its sincerity and determination in fighting corruption to its root.
The 1698 ha of lands is the payment for RM46 billion. For the RM27 billion payment for Penang Transport Master Plan project the land required is 970ha.
If Lim Guan Eng sell the rights of reclamation RM1 psf like Koh Tzu Koon administration, the state government will receive a total RM183 million in cash and additional 727 ha of land.
Even if you want to pay for reclamation without selling the rights of reclamation, the average reclamation cost is about RM30 psf. The cost of reclamation for 1698 ha should be RM 5,357,880,000 . Lim Guan Eng had allowed the vendor to charge an exorbitant cost of RM19 billion in order to squander more than RM13.5 billion.
According to IUCN, the cost of reclamation is never an issue. The cost is only $5 per cubic meter. We are paying for RM229.02 per cubic meter.
Therefore when I make the accusation that Lim Guan Eng is taking the opportunity to steal RM13.5 billion it is a qualified statement that is not tantamount to defamation.
To finance this grand scheme of stealing RM19 billion, RM 183 million and 727ha of lands from Penangites, Lim Guan Eng was planning to take a loan of RM1 billion from China Exim Bank.
The bridging loan of RM2.3 billion will be more than sufficient to fund the reclamation project. We need to put Lim Guan Eng into jail for his attempt to steal billions from us.
This saga is the continuation of the Penang Roads and Tunnels project scandal where Lim Guan Eng administration purposely allowed a RM2 company to overcharging Penangites RM2 billion.
In 2011 at Rasa Sayang Lim Guan Eng announced to a group of audiences about the state government’s efforts in upgrading the state infrastructures involving a RM4 billion Roads and Tunnels project.
The state government subsequently awarded the said project to Zenith Bucg at a cost of RM6.3 billion. The difference in cost of more than RM2 billion led to the criticism by the state’s opposition, Gerakan. Lim Guan Eng conveniently attributed it as typo error .
In Dec 27 2013 China Reuters reported that China Railway Construction Corporation announced to the China stock exchange that it’s subsidiary in Malaysia has obtained a US$1.19 billion Roads and Tunnels project in Penang.
Earlier the company website reported the subsidiary also secured the $22 million details design job for Penang Roads and Tunnels project.
The exchange rate for ringgit per dollar between 2011 and 2013 was about 3.18. If using the exchange rate of 3.4 then the US$1.19 billion is approximately equivalent to RM4 billion.
It can’t be a coincidence that the cost of the project announced by Lim Guan Eng is approximately equivalent to cost announced by China Railway Construction Corporation.
It is clear that Lim Guan Eng administration had intentionally allowed Consortium Zenith Bucg (CZBUCG) to secure the project at RM6.3 billion and thus allowed CZBUCG to earn RM2 billion without much efforts.
In Canada the government spending $700,000 for feasibility study people complained.
In Penang spending RM180million for feasibility studies is not considered as exorbitant.
It was reported in the past that the RM305mil will fund the feasibility study at RM183 million, detailed design for RM92 million, and environmental assessment for RM33 million.
How come now the cost of the studies is RM31million for the three paired roads and RM20 million for the tunnel?
Feasibility and EIA studies not yet completed, how can detailed design work start?
Why paid for uncompleted jobs?
The feasibility studies and detailed design should cost only RM 5 million instead of RM305 million.
In his efforts to mislead Penangites in particular and Malaysians in general, Lim Guan Eng was laughing at Koh Tzu Koon for selling the rights of reclamation at RM1 when he actually plans to pay RM104 psf for the reclamation.
This is a grand scheme of stealing RM1 billion loan , RM 183 million in cash, RM2 billion in exorbitant charges, RM300 million exorbitant charges (from feasibility studies and detailed design), RM 19 billion and 727ha of lands from Penangites.
I wonder whether the Harapan government will genuinely review the Penang Transport Master Plan projects or it only interested in witch hunting after taking over Putrajaya.
Regards,
Ong Eu Soon
