The feasibility study on the Penang undersea tunnel has been stopped on orders from the state government, said Consortium Zenith BUCG (CZBUCG) chairperson Zarul Ahmad Mohd Zulkifli.

“We were told to stop for now. We have done about 83 percent of the work for the feasibility study (on the undersea tunnel)… by the Penang state government,” he said at a press conference in Kuala Lumpur today.

He added that the company received the instructions to stop the feasibility study last month and that it was not given a reason.

However, he said the state government probably wants them to focus on the construction of the three highways first.

CZBUCG is the company which has been awarded the contract to build the Gurney Drive-Butterworth undersea tunnel and three highways to ease traffic congestion on the island.

The feasibility studies on the three highways have been completed and approved by the state government, he said, and they are merely waiting on the green light from the Department of Environment before commencing construction.

Hopefully, the construction on the three highways can begin in September, he said, and completed by 2022.

The cost of the three highways is expected to be around RM2 billion, he added.

He stressed that there was no risk of the highways project being cancelled as their contract stated that once the government approved the feasibility study, the project “is a go”.

The agreement also does not have a compensation clause, he added.

He reiterated that CZBUCG won the contracts via open tender.

“We won based on our open tender, which was accepted by all parties; even those criticising this project today acknowledged that it was open tender.

“We gave the best price and technically we were sound,” he said.

CZBUCG will also be holding a roadshow after Hari Raya throughout Penang to brief the local communities on the long-term benefits of the project as well as to clarify their concerns on any “negative statements” related to the project.

Zarul also confirmed that they have proceeded with legal action and have sent the defamation notice to Parti Cinta Malaysia vice-president Huan Cheng Guan today.