Second bridge offer: UEM has 2 weeks to decide
Athi VeerangganPublished: Sep 16, 2008 6:18 AM | Updated: Sep 16, 2008 8:29 AM
United Engineers Malaysia Bhd (UEM Group) has been given a two-week period until Sept 29 to accept or reject the government’s RM1.35 billion contract offer to build the over-the-sea stretch of the Second Penang Bridge.
United Engineers Malaysia Bhd (UEM Group) has been given a two-week period until Sept 29 to accept or reject the government’s RM1.35 billion contract offer to build the over-the-sea stretch of the Second Penang Bridge.
If UEM fails to accept the restructured contract, the government would offer it to other local companies under a restricted tender bid.
“We hope to sign all necessary contracts with all companies by end of October to enable the project to take off by November and be completed on schedule in 2011.
“We hope UEM Builders would accept the offer soon, otherwise we will offer it to others for a competitive price,” said Zaini Omar, head of the special unit for overseas projects under the Prime Minister’s Department.
However, he denied that the government has given a ‘take it or leave it’ ultimatum to the company.
Zaini told this to Penang Chief Minister Lim Guan Eng, state executive councillors and government officers during a meeting in Komtar, George Town today.
The meeting was held in full view of newsmen, marking for the first time an administrative meeting being held openly making good of the Pakatan Rakyat state government’s much lauded CAT policy of competency, accountability and transparency.
Originally UEM Builders Bhd was offered to undertake the entire 24km Second Penang Bridge project in a joint-venture with China Harbour Engineering Co Ltd (CHEC), and also the toll collection concession.
However, the offer expired after the share agreement contract between UEM Builders and CHEC was not inked last month as required.
Thus the government has split the major contracts among UEM – to build the super structureof the 17km elevated sea highway, while CHEC – to carry out all marine, pilling and cabling works below the bridge for RM2.2. billion.
UEM is unhappy
The government also plans to split and give out contracts to local companies also under a restricted tender practice to carry out construction works on the remaining 7km landed portion of either side of the bridge, one kilometer on the island and six kilometers on the mainland, worth RM750 million.
UEM’s earlier toll concession offer has also been withdrawn and awarded to the Finance Ministry-owned Jambatan Kedua Sdn Bhd.
It is learnt that UEM has been unhappy about the government’s change of policy.
Zaini said the Penang Bridge construction was split into several contracts and UEM was offered a lesser amount contract due to the government cost-effective measures.
Under the redesigned structure, the bridge will not have the earlier planned two observation platforms with rest and service areas at the central part while all interchanges will now be built into diamond structures, unlike previously where a few were to be built into clover designs.
This move will save the government RM300 million.
“The government’s main target is to reduce cost for the second bridge and complete it on schedule,” said Zaini.
The second bridge would cost RM4.3 billion, but the government would offer flexible contracts under the variation of price (VoP) system to enable companies to carry out the projects effectively without monetary hindrance according to current steel and fuel market prices.
The government will bear any extra cost incurred.
Meanwhile, the toll charge for the second bridge, which is already behind schedule by a year, will be the same with the present rate on the first Penang Bridge between Batu Uban and Prai, operational since 1985.
The Second Penang Bridge, between the island’s Batu Maung and mainland’s Batu Kawan, will be a four-lane dual carriageway bridge, and will be built with a US$800 million loan from China, while the rest will be either funded by the government or local private sector.
About five percent of the bridge works have been completed, including soil survey and test pilling, while the government is in the process of completing land acquisition.
Negotiations are on-going to pay off five cockle breeders, who are seeking RM2.9 compensation, and six land owners.
The government hopes to complete all these by October end and kick start the bridge construction by year end.
“We are right on track to complete it in 2011,” assured Zaini.
If UEM fails to accept the restructured contract, the government would offer it to other local companies under a restricted tender bid.
“We hope to sign all necessary contracts with all companies by end of October to enable the project to take off by November and be completed on schedule in 2011.
“We hope UEM Builders would accept the offer soon, otherwise we will offer it to others for a competitive price,” said Zaini Omar, head of the special unit for overseas projects under the Prime Minister’s Department.
However, he denied that the government has given a ‘take it or leave it’ ultimatum to the company.Zaini told this to Penang Chief Minister Lim Guan Eng, state executive councillors and government officers during a meeting in Komtar, George Town today.
The meeting was held in full view of newsmen, marking for the first time an administrative meeting being held openly making good of the Pakatan Rakyat state government’s much lauded CAT policy of competency, accountability and transparency.
Originally UEM Builders Bhd was offered to undertake the entire 24km Second Penang Bridge project in a joint-venture with China Harbour Engineering Co Ltd (CHEC), and also the toll collection concession.
However, the offer expired after the share agreement contract between UEM Builders and CHEC was not inked last month as required.
Thus the government has split the major contracts among UEM – to build the super structureof the 17km elevated sea highway, while CHEC – to carry out all marine, pilling and cabling works below the bridge for RM2.2. billion.
UEM is unhappy
The government also plans to split and give out contracts to local companies also under a restricted tender practice to carry out construction works on the remaining 7km landed portion of either side of the bridge, one kilometer on the island and six kilometers on the mainland, worth RM750 million.
UEM’s earlier toll concession offer has also been withdrawn and awarded to the Finance Ministry-owned Jambatan Kedua Sdn Bhd.
It is learnt that UEM has been unhappy about the government’s change of policy.
Zaini said the Penang Bridge construction was split into several contracts and UEM was offered a lesser amount contract due to the government cost-effective measures.
Under the redesigned structure, the bridge will not have the earlier planned two observation platforms with rest and service areas at the central part while all interchanges will now be built into diamond structures, unlike previously where a few were to be built into clover designs.
This move will save the government RM300 million.
“The government’s main target is to reduce cost for the second bridge and complete it on schedule,” said Zaini.
The second bridge would cost RM4.3 billion, but the government would offer flexible contracts under the variation of price (VoP) system to enable companies to carry out the projects effectively without monetary hindrance according to current steel and fuel market prices.
The government will bear any extra cost incurred.
Meanwhile, the toll charge for the second bridge, which is already behind schedule by a year, will be the same with the present rate on the first Penang Bridge between Batu Uban and Prai, operational since 1985.
The Second Penang Bridge, between the island’s Batu Maung and mainland’s Batu Kawan, will be a four-lane dual carriageway bridge, and will be built with a US$800 million loan from China, while the rest will be either funded by the government or local private sector.
About five percent of the bridge works have been completed, including soil survey and test pilling, while the government is in the process of completing land acquisition.
Negotiations are on-going to pay off five cockle breeders, who are seeking RM2.9 compensation, and six land owners.
The government hopes to complete all these by October end and kick start the bridge construction by year end.
“We are right on track to complete it in 2011,” assured Zaini.
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