ADUN SPEAKS | As reported in The Star on 31 January 2018, Penang BN questioned "whether the state government paid an extra RM 113 million to the developer for the technical studies of the three paired roads project". The state government has numerous times reiterated that the amount paid to the Consortium Zenith Construction Sdn Bhd (CZC) for works done for the feasibility study (FS) and detail design (DD) of the three major roads component is via land alienation. It was also mentioned via various platforms that the land alienated is based on “net developed area”.

The computation that Penang BN chairman Teng Chang Yeow assumed at RM 321 million is based on “gross developed area”. The state government would like to clarify the differences between the “gross developed” and “net developed area” as per the project's preliminary agreement as below:

Clarification on how this computation was made has been clearly stated in the public accounts committee (PAC) report on page No.70, a report that Teng has been referring to but failed to mention. To date the state government has alienated two portion of lands that was earmarked for this project as follows :

There is no scandal as alleged by Teng. The only scandal is Teng trying to hide or twist information in the PAC report to slant it against the state government, to smear and tarnish our image in the run up to the coming general election. There is no discrepancy with regards to the land area provided by the Penang chief minister or Penang exco for public works Lim Hock Seng, as the chief minister mentioned 3.67 acres of net developed area, and Lim mentioned 5.67 acres - Lim, by not mentioning “net developed area”, was clearly referring to gross developed area.

Teng Chang Yeow also has made an allegation that "the lot 702 was transferred on 17 February 2015, three months before the studies were completed in May 2015". The state government would like to bring to attention of Teng that in a typical construction project, claims are evaluated based on milestone completion, which is also known as progress payment. In this case, the first progress payment via land alienation was made on 17 February 2015 for claims on work done for 99% of the feasibility study and 46% of the detailed design for the three major roads component, which was evaluated and recommended by state's appointed independent checking engineer.

Bear in mind - the state government did not pay a single cent or a single square inch of land for the undersea tunnel project where the feasibility study is 95.9% completed, because the construction of the tunnel project is to be completed much later, expected to be in 2027.

(Statement released by the Penang state government as a response the report in The Star.)

LIM HOCK SENG is Penang exco for public works.