A different route for Penang

GEORGE TOWN: Penang is taking a different approach to fund the RM27 billion Penang Transport Master Plan (PTMP).
Instead of telling bidders how much is available, companies are requested to come up with their own funding mechanism.
A source close to the project told theSun that bidders to become the project delivery partner (PDP) for the PTMP are free to come up with their own proposals.
He said the state is leaving funding options open as the private sector could come up with something creative.
He said the company chosen as partner would provide the business model and such and not only the implementation cost but stressed that any proposal would have to be a win-win situation where the people ultimately benefit.
"Let's see what the bidders come up with," he told theSun.
This mirrors what Chief Minister Lim Guan Eng said last Friday when announcing that a tender for a Request for Proposal (RFP) will be open on Aug 15 to appoint a PDP.
He said the state government will consider bidder proposals with regard to business models and funding.
He said the PDP is responsible to deliver a fully commissioned system to the state while meeting federal and local requirements and existing laws.
The PTMP is a massive effort to create new road networks, improve present carriageways and improving the pedestrian ecosystem.
This also includes significantly upgrading the public transport system by introducing new transport options including trams, a mass rapid transit (MRT) system and water taxis.
Under the PTMP, five new intra-state highways are proposed which includes an undersea tunnel to link the island and the mainland.
Perusing the PTMP summary document showed six funding strategies outlined including getting financing from the federal government.
Additional sources include incentives for infrastructure contractors, transport user charges, developer charges, and land betterment charges.
Also being bandied about is the possibility of land swap exercises and issuing reclamation rights.
However, industry players theSun spoke to were circumspect on the matter. Those contacted indicated they were still gathering information on the PTMP and would not comment until more data was available.
Meanwhile, Penang Chinese Chambers of Commerce (PCCC) president Datuk Seri Choot Ewe Seng is urging the administration to quickly implement the PTMP.
He said having a good transport network is vital for business to generate economic growth.
He said infrastructure projects needed time to see results, therefore, the earlier the implementation, the sooner the benefits can be felt.
Choot also played down talk that the PTMP would be implemented half-heartedly if its proponents were no longer around.
He pointed out that agreements to carry out the projects were between the state and the company which means any following administration should honour the prior agreement.
He said not doing so could affect investor confidence in the state as contractual integrity was important.
"The agreements have to be honoured, otherwise investors will be scared to come here," he said in a recent interview.