Premature to talk about RM1b loan for PIL 1 highway - Penang CM
Penang Chief Minister Chow Kon Yeow said today that it is premature to talk about taking an RM1 billion loan to fund the construction of the Pan-Island Link 1 (PIL 1) highway, as the project is still pending approval from Putrajaya.
"There is no question of delay, we are just awaiting Putrajaya's approval," he said at a press conference in Komtar...
Penang Chief Minister Chow Kon Yeow said today that it is premature to talk about taking an RM1 billion loan to fund the construction of the Pan-Island Link 1 (PIL 1) highway, as the project is still pending approval from Putrajaya.
"There is no question of delay, we are just awaiting Putrajaya's approval," he said at a press conference in Komtar.
As Chow explained, Putrajaya's approval is necessary so that project delivery partner SRS Consortium can move to the second stage of work, namely technical design and financial arrangements.
"We are still awaiting approval. If we move into the second stage now, maybe people would laugh at us when we approach the bank for a loan. They will ask us, 'Where is the approval?'"
Chow was responding to a report in The Star on Sunday, which claimed PIL 1 project "hit a snag" due to Penang failing to obtain a RM1 billion bridging loan.
The report also quoted SRS Consortium as saying Penang should stick to its agreement to come up with the RM1 billion sum, while the company looks for a RM1.3 billion bridging loan for the project.
As the chief minister explained, SRS Consortium will be responsible for the bridging finance, but the amount will depend on the contract and the cost of the completed project.
"We will help the project delivery partner get the loan, so that their bridging finance won't be so big, but it is premature to talk about this when we still need to wait for approval of the environmental impact assessment (EIA) report, and the approval of the Penang South Reclamation (PSR) project.
"The PIL 1 may only need EIA approval, but where would its funding come from? The PSR," he said.
'Non-approval unlikely'
Chow noted that it is "unlikely" Putrajaya will not approve the PSR – which involves the creation of three artificial islands – as speculated by certain quarters.
He said these approvals will be discussed by the National Physical Planning Council, and the PSR has been included in the Penang Structure Plan (PSP) 2030.
"We have said so many times that the council decision is important. We have finally been given a date for our report to be presented in the meeting for a decision. This is considered the last crucial hurdle for us to overcome.
"The National Physical Planning Council has met a few times, but the proposal was not tabled as we have not got all the studies ready," he told reporters.
"Now that we have got everything ready, including our PSP 2030, which includes the proposed reclamation site, we have reached the final process of it being tabled at the council for a decision to be made.
"The question of delay or no delay does not arise for us, until this important meeting in April takes place.
"There is no point talking about loans if the project is not approved," he said.
PIL 1, which costs RM7.5 billion for a 19.5km, six-lane highway across Penang Hill, is the first phase of the RM46 billion Penang Transport Master Plan.
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