GEORGE TOWN: With all three planned tunnels scrapped, the Air Itam-Tun Dr Lim Chong Eu Expressway bypass should have cost less - not more, says Penang MCA.
Its state secretary Yeoh Chin Kah said the state government's latest explanation on the RM851.97mil project had only deepened concerns after state infrastructure, transport and digital committee chairman Zairil Khir Johari confirmed the remaining two tunnels were scrapped in 2024 and replaced with an open-cut design.
"When the contract was signed in 2019, the project comprised three tunnels.
"In June 2023, Chief Minister Chow Kon Yeow announced that it had been reduced to two.
"Now, the state government admits that all the tunnels have been cancelled.
"The design has been changed repeatedly, yet the state government never proactively informed the people," he told a press conference at the party's headquarters in Jalan Transfer on Friday (July 17).
Yeoh said Zairil's written reply showed the original contract value of RM851.04mil had increased by RM930,105 to RM851.97mil despite the removal of all three tunnels and the cancellation of the elevated U-turn near The Light.
"From three tunnels to none, plus the removal of the elevated U-turn, the project scope has been significantly reduced, yet the contract value has increased.
"It is like ordering a large bowl of noodles but being served a small one and told the price has gone up. Where is the logic?
"The state government blames rising material costs, but the savings from removing the tunnels and U-turn should far outweigh any increase," he said.
Yeoh said the extensive design changes should have affected both the project's cost and timeline, but instead appeared to favour the contractor.
"Whenever there are design changes, there will definitely be cost and time implications.
"But here, the cost has practically remained the same while the project has taken even longer.
"In the end, all the advantages have gone to the contractor," he said.
Yeoh, who is certified in construction management, also rejected the state's reliance on the Design and Build procurement model to justify the extensive design changes.
"Design and Build is not a shield to shirk responsibility or an excuse for arbitrary design changes.
"Before the contract was signed in 2019, the design, project scope, technical specifications and pricing should already have been finalised.
"If major changes are made after signing, they inevitably affect the timeline, costs and contract value. That is the most basic principle of project management.
"If it cannot provide an explanation, we will lodge a report with the Malaysian Anti-Corruption Commission (MACC)," he said.
Also present were Penang MCA election preparation and scrutiny committee vice-chairman Chan Wooi Jin, Bukit Gelugor MCA vice-chairman Chooi Foo Cheong and Penang MCA Chinese Association liaison chief Khoo Soon Hin.
Earlier, Zairil said the project was awarded under a Design and Build contract, with design revisions being a normal practice to address technical, geological and safety requirements.
He said the project was originally designed as an open-cut alignment before being changed to tunnels in 2020, but reverted to the original open-cut design in 2024 after further site assessments found it to be more suitable.
The proposed U-turn near The Light was also relocated to the Penang Bridge interchange after the Malaysian Highway Authority (LLM) and PLUS rejected the original design on technical grounds.
He maintained that the design revisions did not change the overall contract value, with any additional costs arising from the revisions and higher building material prices to be fully borne by the contractor under the contract terms.
