Penang developers back tunnel project
Penang developers are in favour of the RM6.3 billion integrated road system, including an undersea tunnel, which links the island to Butterworth on the mainland.
Penang developers are in favour of the RM6.3 billion integrated road system, including an undersea tunnel, which links the island to Butterworth on the mainland.
Penang Real Estate and Housing Developers' Association chairperson Jerry Chan said the offer to construct the four-part road project should be implemented sooner than later.
"A ten-year time frame is already too long for the tunnel," said Chan, referring to the project’s slated year for completion, 2025.
"Infrastructure needs advance planning, for it is better to be anticipative than reactive, responding only to bottlenecks."
The project covers a 6.5km undersea tunnel from Gurney Drive to Bagam Ajam in Butterworth, 4.2km Pesiaran Gurney-Tun Dr Lim Chong Eu Expressway bypass, a 4.6km Tun Dr Lim Chong Eu Expressway-Bandar Baru Air Itam bypass, and a four-lane 12km road linking Tanjung Bungah with Teluk Bahang.
It is being fiercely opposed by local NGOs, while the Penang public have declared mixed feelings about it, as revealed in a
public consultation
with Chief Minister Lim Guan Eng on Sunday.
While BN has questioned the project, DAP revealed that former chief minister Koh Tsu Koon had also proposed a similar project in 1999.
Chan compared the current deal with those in the past where contracts for expressways included grants, soft loans, properties in exchange, traffic volume guarantees and tenure of tolls charges.
He urged those who oppose the project to "compare before criticising it".
Why the silence on KL-S'pore link?
He also questioned why there was silence when the high-speed rail linking Kuala Lumpur and Singapore via a tunnel across the Johor channel was announced last month, asking “how do you think they are going to do it?”.
He said no one questioned the previous government on the amount given, in terms of reclamation rights and parcels of prime property land in Gurney Drive and other areas, to the company which previously secured the tender to build the Penang Outer Ring Road (Porr) project, which was later scrapped due to intense opposition.
“The project did not involve any tunnels nor underpass, it was merely road elevation,” he said.
“When Porr was cancelled, the federal government had to pay about RM110 million in compensation to the company. Why was there no hue and cry?” he queried.
Chan said today, Konsortium Zenith Sdn Bhd , which won the tender for the integrated road project, is offering to finance the project and in exchange, be given a 110 acre of land at RM1,314 per sq ft - far above the current market value -and expects no traffic volume guarantees.
“Is this exchange not extremely beneficial to the state? If someone wants to exchange diamonds for gold, why not?”
Chan, however, agreed that a proper environmental impact assessment study should be carried out before the project starts.
He said by building the roads and tunnel, the state was addressing not only the problem of traffic congestion, but housing cost as well.
“We have to determine what and how to make the mainland equally as liveable as the island so that it becomes a very attractive alternative.
“People will make the mainland a default choice if it is accessible and liveable, jobs are available and housing cost there is reasonable,” he said.
As one who was born and bred, and who had worked and paid taxes in Penang all his life, Chan ( right ) said it was his“moral standing” to voice his support for the road plan.
“Those who made their money elsewhere want to come back here, want things to remain cheap and wish the state not to progress because they are in the retirement mode.
“Those who work here and want to live on need a vibrant state. We need to see jobs created, investment flowing in and that prosperity continues.”


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