Penang Federal Action Council chairman Zainal Abidin Osman has been accused of issuing "baseless and slanderous" claims against the Penang government.

Zainal has also been taken to task for criticising Chief Minister Lim Guan Eng for a "change of heart" in preferring a bridge instead of a tunnel that links Gurney Drive to Bagan Ajam when he has defended the necessity of constructing the tunnel.

Lim's political secretary Wong Hon Wai expressed regret that Zainal, who has been rejected by Nibong Tebal voters in the 2008 and 2013 national polls, has refused to stop his "baseless and slanderous" politics against the Penang government.

Wong refuted Zainal's claims that the feasibility study, which is 83 percent completed, has allegedly shown that the tunnel is not feasible to be implemented.

"It is also not true that the state government has to compensate Consortium Zenith-BUCG (CZBUCG), the company awarded the project to implement the tunnel, if it did not get the approval on the Detailed Environment Impact Assessment (DEIA) from the Department of Environment," said the DAP Air Itam assemblyperson.

"Actually, the project is pending the approval of the DEIA and the contractors will bear the risk of all the costs if the study fails," Wong added.

In a statement yesterday, Zainal urged Lim to clarify whether the Penang government must compensate CZBUCG or any other firms that had signed the agreement with the state, if the project was cancelled.

The RM6.3 billion tunnel and three highways project was awarded to CZBUCG via an open tender.

The no-toll three paired highways are slated for completion in 2022, while the tunnel should be ready by 2027.

"We expect the first and second Penang bridges to be congested by then," Wong said.

He noted that tolls rates would only be imposed on the undersea tunnel due to its high construction cost that is twice higher than the building of a bridge.

"But the toll rate is unlike those imposed by the BN administration which comes with traffic volume guarantee that allows the contractor to claim compensation if the agreed volume is not achieved," Wong said.

"Without traffic volume guarantee, it is the contractor, not the state government, that will bear the financial costs," he added.

Lim has said it is much cheaper to build a third bridge than an undersea tunnel and sought the federal government's approval for the project.

Wong said replacing the undersea tunnel with the third bridge would not involve any compensation if it is to be built by the same contractor as it is easier to build a bridge than a tunnel.

Answer all queries

Lim has said he was willing to forgo the tunnel in place of a toll-free bridge if the federal government approves the project.

"However, until now the federal government has refused to approve the project with the excuse that a detailed study needs to be done first.

"A detailed study on the third bridge will cost millions and who will bear the cost if the federal government refuses to approve the project?" Wong asked.

He said that contractors were usually prepared to bear the risks and costs if the DEIA is not approved.

He asked why did the federal government refuse to approve the proposal for a bridge when it did not need to spend a sen for the project as all costs would be borne by the Penang government.

Meanwhile, Zainal said the Penang government should answer all queries relating to the undersea tunnel, including the ones raised by Parti Cinta Malaysia vice-president Huan Cheng Guan.

He said it is unfair for the state government and CZBUCG to sue Huan over his queries, which he has also submitted to the Malaysian Anti-Corruption Commission for investigation.

"Lim never said he would file a defamation suit against Huan for his slander and allegations," Wong said.

"It is the contractor's right to initiate legal action for the losses its reputation suffers due to the claims made by Huan," Wong added.

"It is Huan who threatens to sue the Penang government but we are ready to face him in court. We are waiting," he said.