The proposed eight-lane highway planned for Gurney Drive has drawn flak from Penang opposition leaders when it was announced in March.

But the Penang government announced today that the project will help disperse traffic created from the Sri Tanjung Pinang 2 (STP2) project in Tanjung Tokong.

The estimated cost of the project will be about RM300 million to RM400 million, the state legislative assembly heard today.

“At this point of time, the state government will pay for the project, but discussion on finances are still ongoing,” said state executive councillor on public works, utilities and transportation, Lim Hock Seng.

Lim (DAP-Bagan Jermal) made the announcement during his winding-up speech on Penang Budget 2017, which was tabled at the State Legislative Assembly on Nov 15.

Lim said the project was still in the “conceptual stage” and will be built on a plot of reclaimed land in Gurney Drive.

The highway will be connected to the proposed Tanjung Bungah-Teluk Bahang paired road, and Gurney Drive-Tun Dr Lim Chong Eu bypass.

Property developer Eastern & Oriental is currently undertaking the reclamation project at Gurney Drive under Phase 2A of the STP2 project at a cost of RM1.07 billion.

The 24.28ha reclamation of the Gurney shorefront is slated for completion by mid-2018.

Also being planned is a 400m artificial beach and a seafront promenade - the Gurney Wharf - that offers retail and food and beverage.