Penang Chief Minister Lim Guan Eng today withdrew the stop-work order against MMC Gamuda Joint Venture's double railway tracks project as it has agreed to the state government's demand to reduce the impact of flooding.

NONELim (left) said he was satisfied with the firm and hoped it would resolve whatever problems arising from the project to ensure that the recent flood situation in Kedah does not happen in Penang.

"This is a demonstration of pro-active action in crisis management by the state government," Lim told reporters in a press conference today, after announcing the withdrawal.

"By taking pre-emptive measures, we can avoid floods or minimise their impact," he added.

Lim said the recent flooding in Kedah where about 40,000 were evacuated at the height of the calamity, shocked many, including investors.

Although the situation in Penang was manageable, he added that the state had to act in an "aggressive but pro-active" manner, to ensure a similar situation does not arise here.

"Other than praying, we need to take pro-active action on the rail project," he added.

 Strong criticism

On Nov 12, the firm was issued a stop-work order pending a guarantee that it would pay compensation arising from damage caused by floods.

Lim announced the decision following the state exco's claim that the project, which started in Jan 2008, had worsened the flood situation in Kedah.

penang kedah timber logging azizan abdul razak 310708 02The firm had been criticised strongly by Kedah Menteri Besar Azizan Abdul Razak (right) and Local Government Minister Chor Chee Heung for aggravating the flood situation.

Lim wanted MMC-Gamuda to give a written guarantee that it would bear full responsibility for any costs incurred if the areas surrounding the project in Seberang Perai became flooded, and that it would immediately dismantle or remove any tracks that blocked rainwater flow.

It would bear also have to bear all costs resulting from losses caused by flooding in mainland Penang, as it did in Kedah.

The stop order would be lifted once the firm has agreed to these conditions.

In a letter to Lim this morning, signed by project manager Mohd Nor Idrus and director Azmi Mat Nor, the firm indicated it would accept the state's terms.

Lim said the willingness of the company to provide assurance of compensation for flood victims proves that the state had the people's interest at heart.

"We did not intend to cause inconvenience to anyone; MMC-Gamuda too had not blamed the state for the matter, so please do not politicise the issue," he said.

"The interest of the people are taken care of, and they are not only Pakatan Rakyat supporters but BN's as well," he added.

Lim was also willing to meet Transport Minister Kong Cho Ha over the matter, as the latter had said that Penang ‘used' the stop-work order to politicise the issue or as a weapon to threaten the federal government.