Second Penang bridge: 'UEM making outrageous demands'

By Rahmah Ghazali - Free Malaysia Today

KUALA LUMPUR: UEM Builders Bhd has been making “outrageous” demands for financial assistance for the construction of the second Penang bridge, a state assemblyman charged today.

And the federal government is bowing to this government-linked company, said Sim Tze Tzin, Pantai Jerejak PKR state assemblyman.

He said the matter came to light after a “whistle-blower” produced a confidential letter from UEM to the Economic Planning Unit (EPU) soon after Pakatan Rakyat took over Penang two years ago.

Sim, who showed the letter to reporters in Parliament, said the letter, dated Aug 8, 2007, was signed by UEM chief executive officer Ahmad Pardas Senin and was addressed to EPU's director-general Dr Sulaiman Mahmod.

Sim (centre) said the contents of the letter revealed, among other things, that UEM has asked for financial assistance to the tune of RM22 billion to build the bridge although the actual cost of the project is only RM4 billion.

"This is a very outrageous demand and the federal government has complied with it. We are afraid that the federal government would blindly agree to all other kinds of assistance requested by UEM,” he said.

"The letter is genuine. So far, any request from UEM has been complied with by the federal government," he added.

In the letter, UEM has also asked for a concession period of 45 years, including seeking government soft loan and grant.

Something 'amiss'

According to Sim, UEM has also requested that the toll rate be fixed at RM9.40 for the second Penang bridge. It also wants the toll price for the first bridge, currently at RM7, be increased to RM9.40, with the maximum tagged at RM11.50. This price structure will go on till 2051.

The toll collection is expected to amount to RM7 billion.

But Sim said the concession for the first bridge expires in 2018 and “so why did the letter state that it (toll price) will go on until 2051?”

He said UEM had also asked the government to scrap the 20% discount for the Touch'nGo cards.

"Lately, the government had announced it would abolish this discount, which goes to show that what the letter had stated is true. But due to public pressure, the government backed down and said the discount would only be for Penangites.

"Last week, the prime minister has said the toll price for the second bridge will be at RM9.40. Now, we are worried if the government had given in to UEM's demand," said Sim.

He added that there is something amiss in the second Penang bridge project, as the federal government is providing a huge amount of financial assistance to UEM.