The Penang government has dismissed claims that it is willing to spend RM305 million on feasibility study for the undersea tunnel instead of flood mitigation works.

Penang has urged the federal government to approve its application of RM350 million for the third phase of flood mitigation withheld since 2008 after Pakatan Rakyat (now Harapan) took over the state from BN.

State executive councillor Lim Hock Seng questioned why Putrajaya refused to approve the allocation as it would truly address flood issues in Penang.