Penang BN has questioned the "stark difference" of RM236 million in figures issued by the state government and Chinese firm China Railway Construction Corporation Ltd (CRCC) as the cost for feasibility studies and detailed design (FSDD) for the undersea tunnel project.

State BN chief Teng Chang Yeow pointed out the huge difference between the figure of US$22 million (approximately RM69.3 million) stated by CRCC and the sum of RM305 million as announced by the Penang government for the FSDD contract inked in 2013.

"Our findings show that the exchange rate on Oct 6, 2013, the day the FSDD contract was signed, was US$1 to RM3.15.

"Based on that exchange rate, the value of the FSDD contract of US$22 million should be approximately RM69.3 million," he said at a press conference today.

Referring to the state’s Oct 19, 2015, Public Accounts Committee (PAC) report and the state government’s reply to the State Assembly on May 19, 2017, Teng said the total value of the FSDD was announced as RM305 million.

Of this RM305 million, the state government had confirmed that two pieces of land valued at RM208 million had been swapped as payment for the completion of the studies for the three highways, he added.

A sum of RM208 million was paid after the state-appointed independent engineering consultancy, HSSI Sdn Bhd, certified and verified the claims by the tunnel contractor, Consortium Zenith Construction Sdn Bhd.

"The question now is the difference of RM236 million between the figures of US$22 million, or approximately RM69.3 million as announced by CRCC, and RM305 million as announced by the state government for the FSDD contract," he added.

Based on Malaysiakini's KiniGuide, the undersea tunnel's FSDD only costs RM96.24 million, while RM305 million is the total FSDD cost for all three major roads plus the undersea tunnel project.

Lim (photo) has insisted that not a single cent or square inch of land was swapped as payment to the contractor for the tunnel project.

Accompanying Teng at the press conference were state Gerakan vice-chairpersons Oh Tong Keong and Lee Boon Ten, state Gerakan secretary Hng Chee Wey and publicity bureau chief Ooi Zhi Yi.

Teng has also issued a statement based on his press conference.

On Jan 12, he had questioned the cost of the FSDD for the proposed 7.2km tunnel project, which includes three highways, to link the Penang island to Butterworth on the mainland.

"The DAP Penang state government and Chief Minister Lim Guan Eng have conveniently and disrespectfully avoided answering our questions," lamented the state Gerakan chief.

The tunnel project has been the subject of a massive investigation by the MACC since early this year. Three high ranking officers involved in the project have been arrested.

Elaborating his query further, Teng referred to Bulletin Mutiara, the state's official publication on its website on Oct 6, 2013, which published Lim's opening remarks at the signing ceremony of the undersea tunnel project.

The remarks showed that the FSDD feasibility studies were undertaken by Consortium Zenith BUCG Sdn Bhd with CRCC and Beijing Urban Construction Group (BUCG), Teng said.

BUCG has been dropped from the consortium, a special purpose vehicle (SPV) to implement the project, due to a fatal crane incident in Kuala Lumpur in 2016.

The SPV has been renamed Consortium Zenith Construction Sdn Bhd.

Teng pointed out that a week after the signing ceremony, CRCC on its website, on Oct 12, 2013, announced that it had signed a contract with Malaysia’s Consortium Zenith BUCG Co Ltd.

Their task was to undertake a detailed design for the three highways and undersea tunnel, at a contract value of US$22 million.

It further stated that the signing of the contract showed the kick-start of the feasibility studies and detailed design works.

On Oct 14, 2013, China’s state-owned Assets Supervision and Administration Commission of the State Council reported that CRCC had signed an FSDD contract valued at US$22 million for the tunnel project.

CRCC is a China state-owned asset.

Teng urged the Penang government to be transparent and accountable to the people of Penang on this “difference” in the value of the FSDD contract.

"The swapping of land for whatever definition the DAP state government may want to define, is still a payment made using assets belonging to the people of Penang," Teng said.

Malaysiakini is seeking the state's response on this matter.

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