PM: No Petronas funds for 2nd bridge

Prime Minister Abdullah Ahmad Badawi today rejected a proposal by Penang Chief Minister Lim Guan Eng to use Petronas money to construct the second bridge across the Penang channel.

“He said it is not possible because of a few subsidies and other commitments they are planning,” said Lim, after his first official meeting with the premier at the latter’s office in Putrajaya after becoming the Penang CM following March 8 victory for the Pakatan Rakyat coalition.

“Of course, I would feel otherwise, that it’s still necessary (for the Petronas fund), even if it’s not fully (funded), but partially because the cost of the bridge - according to him - has increased quite dramatically,” he added.

Lim said the premier vowed to reduce the cost so it would not be passed on to the motorists.

The CM had previously proposed the use of the money from the national oil company to build the second bridge to link the island with the mainland instead of borrowing international funds.

Lim, an accountant by training, had said that Petronas only needed to channel about 4.1 percent, or RM3.5 billion, from its annual oil revenue of RM85 billion to build the bridge.

Mega-projects to continue

According to him, Abdullah in today’s meeting also once again gave an assurance that all mega-projects in the state that had been announced previously will be continued, especially the second bridge which is slated for completion in Jan 2011.

Lim said his state government will cooperate with the federal government to ensure the construction of these projects be expedited and carried out smoothly.

“He (Abdullah) also said he did not intend any discrimination (against the state government). We hope the federal ministries which have made certain announcements will also observe that.”

“We hope the (federal-state) relationship in on the even keel,” he added.

According to Lim, he has submitted two letters to the premier during the meeting, calling on the federal government to continue with the infrastructure development projects and on promised allocations to Penang.

Lim, who was chauffeured in a black Perdana, was seen entering the premier’s office building 10 minutes before the 10am meeting. He was accompanied by his political aide Ng Wei Aik, who is also the Komtar state assemblyperson, and state government’s secretary Jamaludin Hasan ( photo, left ).

He stopped and held a brief press conference outside the building’s main gate when he emerged again at 10.45am after the meeting ended.

Exchange of views on NEP

On the atmosphere of the 30-minute-long meeting, Lim appeared cautious in choosing his words and described it as "less than cordial".

“It was conducted in a... a... I can’t say it was cordial but it was on good terms ( saya tak mahu cakap mesra tapi dalam keadaan baik ). We gave our views not just on issues concerning the near future but certain previous issues too.”

He said there could be some misunderstanding between the duo due to inaccurate media reports.

While Lim did not disclose what was the issue, it is believed that it was linked to his maiden speech as the Penang CM, where he has vowed to run the state government without the New Economic Policy (NEP), an affirmative policy that favours the bumiputera.

Lim conceded that he exchanged views with Abdullah on the matter.

“There is exchange of views and clarification on what was actually said and what was not said... We have our views on that,” said the CM when asked on whether Abdullah was unhappy with his (Lim’s) remarks.

He said the issue of adopting the open-tender system was also discussed during the meeting and the CM explained to the prime minister that the state government was merely complying with the Treasury’s guideline.

“I don’t know whether he accept (my views) but I explained to him,” said Lim.

Lim’s remarks has prompted angry protests from the Penang Umno members, who wanted him to withdraw the announcement.