The Penang state government has been criticised for supporting a 30 sen toll hike for the proposed Penang Outer Ring Road (PORR) mega project.

Penang DAP organising secretary Danny Law Heng Kiang alleged that the state government had agreed to the new rate, which will be at RM1.30, to indirectly assist the developer, Peninsular Metro-Works Sdn Bhd - Peninsular Island Properties Joint Venture to secure huge bank loans to finance the project.

Being a company with a mere RM50,000 paid-up capital and unproven track record in

building such a mammoth highway project, he said the developer had to obtain a large bank loan with strong government backing.

The company, helmed by Bukit Bendera Umno division chairperson and Penang Island Municipal Councillor, Ahmad Ismail, needs to generate large revenue to repay the loan.

Ahmad was once closely associated with former deputy premier Anwar Ibrahim. Penang Chief Minister Dr Koh Tsu Koon's state constituency, Tanjung Bunga, falls under the Bukit Bendera parliamentary seat.

It is an open secret that Koh depends heavily on Ahmad to deliver the Malay votes during elections.

"The state government supported the proposed toll hike to assist the company to secure and service the loan.

"It's ludicrous that the state government endorsed a toll hike proposed by the developer when the project itself was being widely questioned for its objectivity," said Law.

Costly highway

The proposed RM1.02 billion PORR would be the costliest highway to be built on Penang island and has been submerged in controversy.

More than 50 houses, various squatter colonies and greenery would be destroyed in building the highway.

The 17.6km highway would be built between Jalan Tunku Kudin in the Southeast and Bagan Jermal in the Northeast, cutting through residential and commercial areas as well as hilly terrains in Gelugor, Taman Delima, Bandar Baru Air Itam, Air Itam old town, Reservoir Garden and Taman Jesselton.

Motorists using the highway will have to pay toll for the next 30 years.

The state government has claimed that PORR was planned in accordance with the Penang Draft Structural Plan (2000) to ease traffic congestion in George Town.

Although the government has promised that the project will be completed in the next three years, Law is rather pessimistic.

He noted the failure to complete the on-going 4.7km Jelutong Expressway project within the stipulated time frame.

"The project can only be ready in 10 years. By then PORR would have outlived its purpose," he said.

Penang DAP wants the government to suspend the project until the Jelutong Expressway is fully operational as scheduled in 2008.

The party also wants the state government to immediately implement steps to develop an effective and affordable metropolitan public transport system, encompassing buses, a monorail service and metered taxis, in the state.

"This can ease traffic congestion in Penang in the long run," said Law.

ATHI VEERANGGAN is malaysiakini 's Penang-based stringer.