THE contractor of the RM851mil Air Itam–Tun Dr Lim Chong Eu Expressway bypass project has sufficient funds to finish construction despite an unsuccessful land auction beside Gurney Bay, Penang.
Penang Chief Minister Chow Kon Yeow said about RM50mil was needed to complete the remaining works of the project, which was 93.19% finished as of Sept 30.
“The company has its own funds to complete the project, so there is no need for concern,” he told reporters after a site visit in Gelugor.
The public auction in early October for a 2.43ha plot with a reserve price of RM313.63mil drew zero bidders.
Proceeds from the auction were meant to pay contractor Consortium Zenith Construction Sdn Bhd (CZC) under an infrastructure-for-land swap arrangement, raising concerns over potential project delays.
However, Chow clarified that the state government remains ready to transfer the remaining land to CZC or its nominees, allowing the contractor to either sell or develop the plots independently to recover costs.
Earlier in his speech, Chow expressed confidence that the project would be completed by next April, with additional work teams deployed to speed up construction.
He said the main bridge and viaduct structures were built, with work now focused on completing parapets, installing barriers and carrying out associated works.
The 5.7km bypass, the first project under the Penang Transport Master Plan (PTMP), will connect Bandar Baru Air Itam to the Tun Dr Lim Chong Eu Expressway.
It is expected to shorten travelling time and ease congestion along Jalan Masjid Negeri.
Chow said the bypass would only be opened to traffic after the necessary technical inspections and road safety audits were completed.
On the elevated U-turn component, he said soil investigations had been carried out after obtaining approval from the Malaysian Highway Authority.
Penang Infrastructure Corporation Sdn Bhd chief executive officer Datuk Seri Farizan Darus said the state had yet to quantify how much traffic the bypass would divert from existing roads.
He said a study was needed to determine the traffic volume from Bandar Baru Air Itam through Green Lane and Jalan Masjid Negeri before measuring the full impact.
“What is certain is that travelling time will be shorter and motorists will save on fuel,” Farizan said.
Also present were CZC managing director Tan Sri Dr Khor Eng Chuen and Penang State Secretary Datuk Dr Jafri Abdul Jalil.
