The government aims to finalise the RM1.35 billion contract deal in a month’s time with any capable contractors to build the upper super structure of the Second Penang Bridge, if the United Engineers Malaysia Bhd (UEM Group) decides to pull out from the project.

Finance Ministry-owned Jambatan Kedua Sdn Bhd managing director Zaini Omar said the government would award the contract either under restricted tender (Plan A) or open tender (Plan B) to other companies.

However, he was confident that UEM Group would accept the contract but it is still possible the group may reject it.

“In case UEM pulls out, we will award the contract within a month to companies with the technical expertise, experience, competitive price and excellent track record to build the super structure of the bridge,” he said.

second penang bridge 091108 artist impression UEM Group is understandably upset with the government's offer of only part of the bridge contract after its subsidiary UEM Builders Bhd was originally offered to undertake the entire 24km Second Penang Bridge project in a joint-venture with China Harbour Engineering Co Ltd (CHEC), and also the toll collection concession.

However, the offer expired after the share agreement contract between UEM Builders and CHEC was not inked in August as required.

In early September, the government decided to split the major contracts between UEM and CHEC.

UEM is tasked to build the super structure of the nearly 17km elevated stretch sea highway, while CHEC carries out all marine, pilling and cabling works below the bridge for RM2.2 billion.

UEM’s toll concession offer was withdrawn and awarded to JKSB.

The government also plans to give out contracts to local companies under a restricted tender practice to carry out construction works on the remaining 7km landed portion of either side of the bridge, one kilometer on the island and six kilometers on the mainland, worth RM750 million.

“The government’s change of policy is due to the government's cost-effective measures,” Zaini told a press conference during the launching of CHEC construction site office and temporary jetty by Chief Minister Lim Guan Eng in Batu Maung today.

Earlier UEM Group was given a ‘take it or leave it’ ultimatum until Sept 29 by JKSB but this was later extended until nextl week upon request.

“I can assure that all necessary contract deals, with or without UEM, will be finalised in a month’s time to enable the project to take off immediately and be completed within a 42-month schedule by May 2012,” Zaini said.

Save RM300 million

Both the federal and state governments however, hope that the project would be ready by Nov 2011.

Under the redesigned structure, the bridge will not have the earlier planned two observation platforms with rest and service areas at the central part while all interchanges will now be built into diamond structures, unlike previously where a few were to be built into clover designs.

second penang bridge 091108 pilling This move will save the government RM300 million.

The second bridge will cost RM4.3 billion, but the government is offering flexible contracts under the variation of price (VoP) system to enable companies to carry out the projects effectively without monetary hindrance according to current steel and fuel market prices.

The government will bear any extra cost incurred.

The Second Penang Bridge, between the island’s Batu Maung and mainland’s Batu Kawan, will be a two-lane dual carriageway with a motorcycle lane on either side. It will be constructed with a US$800 million loan from China, while the rest will either be funded by the government or the private sector.

A relieved Chief Minister Lim described the project, which was once in danger of cancellation due to financial constraint and political agenda, as ‘now a bridge of hope not a bridge too far’ for Penangites.

Once ready, the Second Penang Bridge will be the longest and an iconic landmark in Southeast Asia.