PTMP to cost more, following standoff with Federal govt

GEORGE TOWN: The state government has conceded that the proposed RM27 billion Penang Transport Masterplan will likely cost more now following a stand-off with Putrajaya over the reclamation facet of the project.
State Local Government, Traffic Management and Flood Mitigation committee chairperson Chow Kon Yeow said that the construction cost will likely rise due to the materials and machinery needed to execute the project.
Penang is now embroiled in a wrangle with Natural Resources and Environment Minister Datuk Seri Wan Junaidi Tuanku Jaafar, who has described the project as illegal, owing to the lack of transparency on the planners' part.
The Sarawakian Minister also vowed to reject the project on grounds that the reclamation may undermine the coastal environment, and even encroach into international waters.
To this, Chow told a press conference that the state was bemused over Wan Junaidi's claims, saying it was factually incorrect.
Chow said that Penang had followed the necessary steps to submit the technical reports from the Penang Southern Reclamation site's Environmental Impact Assessment (EIA) to a hydraulic report to social, marine and traffic assessments.
Penang has taken the necessary strident steps by the SRS Consortium well as the state agencies to appease all quarters including the critics over the project.
The consortium, which won the bid to become the masterplan's project delivery partner consists of the listed entity of Gamuda Berhad, Loh Phoy Yen Holdings Sdn Bhd (a private concern of the late tycoon Tan Sri Loh Boon Siew's family) and Ideal Property Development Sdn Bhd.
Chow said the state was also willing to meet Junaidi to clarify whatever misgivings he may have about the reclamation.
"We will be patient. We are hoping to secure federal approval when the National Physical Planning Council (chaired by Prime Minister Datuk Seri Najib Abdul Razak) meets by June, so we can proceed in earnest."
Chow acknowledged that the more polemic the issue becomes, the costlier it will be to the consortium and state.
Chow said it was unfair to blame Penang as presently, there were 10 other major reclamation projects going on in Kedah, Perak, Malacca, Negri Sembilan and Johor respectively.
"There was one in Kedah where the developer went ahead even without obtaining an EIA approval. Where is the enforcement," Chow asked.
Despite the remarks made by Wan Junaidi which signified that the reclamation was a non-starter, Chow pledged that the state has not given up.
The transport masterplan is seen as crucial in Penang's efforts to alleviate the worsening traffic congestion on the island.
From the leasing of the reclaimed land to SRS, Penang expects to underwrite the costs of the masterplan which includes building a light rail transit line and new roads.