The Penang government and Consortium Zenith-BUCG (CZBUCG) have denied that the feasibility study (FS) for the undersea tunnel has been halted.

The project, which links Gurney Drive to Bagan Ajam in the mainland, includes three highways across the island, costing RM6.3 billion.

Chief Minister Lim Guan Eng said there was no cancellation of the study or the tunnel project which is slated for completion in 2027.

Lim said CZBUCG chairperson Zarul Ahmad Mohd Zulkifli, who issued the statement at a press conference yesterday, “did not mean it that way”.

He added that there was probably a “miscommunication” during Zarul’s press conference on the tunnel in Kuala Lumpur yesterday.

He stressed that Zarul was asked to come to Penang to correct the impression that the Penang government has stopped the feasibility study for the tunnel.

“What he meant is that if the detailed environment impact assessment is not approved by Department of Environment, the project cannot go on and the cost will be borne by the contractor,” Lim said at a press conference in George Town today.

'Not half-past-six consultants'

Yesterday, Zarul said: “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.”

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

Zarul, who accompanied Lim at the press conference, said the company planned to complete the study, adding that he might have mentioned the matter (that the study was stopped).

“I did mention it but sorry, maybe it is fasting month… we will focus on the three highways, our priority is to do the roads first as the tunnel will only be completed in 2027,” Zarul said.

On the press conference held in Kuala Lumpur yesterday, Zarul said he brought all his consultants to do a five-minute presentation to “prove they are not half-past-six consultants”.

He added that the conference was meant to tell the press three things including confirming that CZBUCG has issued a legal letter to Parti Cinta Malaysia vice-president Huan Cheng Guan over his alleged defamatory remarks about the firm and the undersea tunnel.

The remarks were made in the two reports Huan lodged at the Malaysian Anti-Corruption Commission last week.


“We also informed the press that our consortium will address the concerns of Penangites in roadshows as we are being paid by the Penang government.

“We don't receive a sen from the federal government, so out obligation is to Penangites,” Zarul said.

“We also plan invite some members of press to go to China to see what our partner China Railway Group has done with the undersea tunnel there,” he added

“If I think the undersea tunnel is not going to happen, why would I invite you all to go to China?” Zarul asked.