The Attorney-General's Chambers has been instructed to study and ascertain the quantum of the compensation that the contractor for the scrapped half bridge project is entitled to, said Works Minister S Samy Vellu today.

"There is some compensation allowed for in the contract. Clause 14 (of the contract) says if we delay (the project), we may have to pay RM1 million per month," he told a press conference at the Parliament lobby.

He was asked whether the government had in principle agreed to pay compensation to the contractor after the cabinet in its weekly meeting yesterday decided not to go ahead with the project due to legal implications and other complications.

Samy Vellu said the matter has been referred to the AG's Chambers and a decision is expected later today. Following this, he said the ministry will send a letter to the contractor.

Pressed for more details, he replied: "We have stopped the original work for some time and the contractor was there doing preliminary works, until three weeks ago when we gave them the directive to go ahead with the contract.

"So the contractor brought his machines and everything, all the things are there now. All these (aspects) have to be considered very carefully and legally as in what the contractor deserves and what should the government pay - if there is any compensation to be paid," he added.

The minister said he will meet with the contractor next week together with officials from the Public Works Department.

The New Straits Times today quoted Prime Minister Abdullah Ahmad Badawi as saying that RM100 million would be paid in compensation to the contractor Gerbang Perdana.

New elevated highway

Meanwhile, Samy Vellu said he will propose to the cabinet to construct a six-lane flyover to replace the RM30 million temporary links currently under construction to connect the Custom, Immigration and Quarantine (CIQ) Complex with the causeway.

This is to ensure that the almost completed complex which cost RM1.2 billion will not become a white elephant .

Samy Vellu explained that the flyover will be built from the CIQ complex - which is about 12-14 feet above the causeway - to ensure that traffic at the congested area, where many connecting roads are located, will not be affected.

The minister said he did not foresee any difficulties pertaining to the elevated highway proposal.

Asked whether the flyover project will be put on hold pending further development on the bridge issue, he replied: "No, I don't think so. According to the cabinet's decision, there's nothing to discuss anymore."

On the cost of the flyover, he said: "The original cost for the temporary road was RM30 million. I have proposed that this flyover might cost a bit more but it doesn't matter because rather than spending RM2 billion (on the bridge and CIQ complex), we will spend little money to do the connection and get away from all this headache.