Tunnel-highways project: Guan Eng responds


Chief Minister Lim Guan Eng has responded to the concerns aired earlier on this blog.

Dear Anil,

I felt you did not give a complete picture of the constraints faced by the state govt during these last 5 years in trying to get public transport going with the obstructionist attitude of the Transport Ministry and the Federal govt. Nothing exemplifies more such difficulty faced by the state govt then the Fed govt’s stubborn refusal to accept a RM10 million yearly payment to offer free bus rides during peak hours. This is on top of the 2 earlier successful initiatives of offering free CAT bus rides in the heritage city enclave and free Park & Ride across the 1st Bridge from the mainland to Bayan Lepas FIZ.

You should have pointed out in fairness that the state govt can do nothing to improve public transport without federal government approval even if we pay for it as the RM10 million failed cash offer showed – no say in ferries, taxis, buses and even water transport. As such we feel that it is our responsibility to offer a clear choice – a worst case scenario if we do not win Putrajaya, that at least there are alternatives that we have planned to mitigate traffic congestion. It is worth pointing out that the number of cars coming in across the 1st Bridge had hit record levels of more than 80,000 car per day.

The award tender exercise was done in an open competitive manner and evaluation and recommendation done not by me or other EXCO members but by the State Financial Officer Dato Mokhtar Jait.

I beg to differ that building more roads will finally cause more cars to come in. The advantage of more alternative roads would provide us options of closing down inner city roads for pedestrian walkways, tram lines and dedicated bus lanes.

I respect your strong views on this matter and assure you that such acerbic remarks will not deter me from continuing to engage with dissenting detractors. We all want what is best for Penang but let us continue to engage to see how we can refine our respective positions on the premise that there is no monopoly for being absolutely right.

Attached is my press statement issued today which will allow me to give my side of the story. Thank you.

Guan Eng

Dear Guan Eng

I appreciate your response and willingness to engage openly for two hours during the meeting yesterday in the full glare of the media – something which surprised us.

I know your hands are largely tied re public transport, no thanks to the BN federal government’s centralisation of powers over public transport. In previous posts, I have criticised the federal government for not allowing your state government to subsidise RapidPenang bus services during peak hours while I have applauded your express bus service initiative across the Penang Bridge.

READ MORE:  Guan Eng's arrest

I am sorry if I sounded ascerbic. It is just that the main thrust of the disappointment stems from our thinking that the Penang state government should wait for the outcome of the general election before saying it really is unable to do anything more about public transport because of BN federal control. In the election campaign, you and your colleagues can present a clear pledge to the voters of what you will do with public transport if Pakatan captures Putrajaya – rather than taking a big first step to committing to the highways and road-based tunnel (a cross-channel rail link would be a different matter) before the campaign. If Pakatan is still defeated at the federal level, then I am sure voters will understand your hands are really tied at the state level.

It is still not too late to make sustainable/public transport (instead of highway-based options) a major plank of your election campaign. Voters across the country will surely give your coalition a big mandate if you tell them that a Pakatan federal government would do all it can to promote sustainable transport alternatives (instead of highway-based options and cheaper cars to flood those highways) – which will reduce their heavy financial burden of relying on private motor vehicles e.g. car loans, petrol bills, car maintenance, road tax, toll payments, parking fees/tickets and speeding tickets, not to mention improving the overall quality of life through reduced congestion, pollution and greenhouse gas emissions, and stress. It will also save lives lost on the road. I appeal to you to consider this option in the long-term interest of Penang and the rest of the country.

I reproduce your statement in full below, as I did in the original post before receiving your response.


Press Statement by Chief Minister of Penang Lim Guan Eng In Komtar, George Town, on 2nd March 2013.

1.6 Million Penangites Will Decide On Pakatan Rakyat’s 4 Highway Improvement Projects Of RM 6.3 Billion And A Proposed Tram System Throughout The State Linking Both The Island And The Mainland.

The PR Penang state government will submit to the will of 1.6 million Penangites, who will decide on the tender award of 4 highway improvement projects of RM 6.3 billion, including South East Asia first underwater sea tunnel from Gurney Drive to Bagan Ajam. The four major highways were recently awarded to a consortium comprising a local company and Beijing Urban Construction Group, a major Chinese construction company that built the Beijing Olympic Stadium Bird Nest.

Should PR win power in Putrajaya, PR is also proposing a tram system throughout the state linking both the island and the mainland. BN’s monorail is inappropriate for a world heritage city like Penang, as its elevated structure will destroy Penang’s charms. As a tram system on level ground would match Penang’s heritage, new alternative roads are required so that existing roads can make way for tram lines.

No To Monorail Yes To Tram

BN’s monorail project will not happen even if BN wins in Penang because of two reasons. One, the monorail would not be permitted by UNESCO and its construction would cause George Town to lose its UNESCO World Heritage city status. Two, BN has never fulfilled its promise when the monorail was first made by former Prime Minister Tun Abdullah Ahmad Badawi in 2006. Neither was this promised delivered when Datuk Seri Najib Tun Razak became the Prime Minister. Clearly we have to wait until Dato Seri Anwar Ibrahim becomes the Prime Minister, then will there be a tram system.

Public transport is the sole jurisdiction of the Federal government. Even if the state government has the funds, the Federal government can refuse to give licensing and co-operate to allow a public transport system in Penang. This refusal to co-operate was clearly demonstrated when the Federal government refused to accept RM10 million yearly by the state government to provide free Rapid Penang bus rides during peak hours throughout Penang state. The Penang PR state government will not be a do-nothing government and will build new alternative roads to try to make up for the refusal of the BN Federal government to deliver on their promise of providing an effective public transport in Penang.

No To Entry Charges To George Town, Penang.

PR has firmly rejected extreme calls for entry charges for all vehicles entering George Town, Penang as PR is committed to free movement of people within Penang as well as those from outside Penang. To adopt this “Singapore model” to reduce traffic congestion is elitist at best in reserving George Town for existing residents and discriminatory at worse by only ensuring that the well-off can enter George Town, Penang.

Can Teng Chang Yeow Explain Why BN Sold The 940 Acres Of Reclaimed Land in Tanjung Pinang At Only RM1 Per Square Feet?

The Penang state government regrets the lies made by BN Penang Chair Teng Chang Yeow on the tender price, if the federal government has been informed or approved the tender to a joint local-international consortium and relating to the amazing speed in the tender award.

The Federal government was aware of this proposed project as far back as 2011 when both Prime Minister Dato Seri Najib Tun Razak and Chinese Premier Wen Jia Bao witnessed the exchange of Memorandum of Understanding by me for these 4 highway and tunnel projects in Kuala Lumpur. The open competitive tender was called in 14.11.2011 and public engagement with the public was carried out in 2011 briefing them of the project. The entire tender exercise was a transparent and accountable process.

How can these four projects be done with amazing speed when the first will be completed after 2017 and the underwater sea tunnel by 2023-25, even though the state government will try to finish it by 2020? The long construction time is due to the need to comply with Environmental Impact Assessment(EIA) requirements. Failure to comply with EIA would mean that the 4 projects would not go on.

The formal contract is still subject to discussion and is expected to be signed in a few months time and it will not proceed if rejected by the people. Further, the final tender price is not the estimated RM8 billion but RM 6.3 billion awarded to the lowest tenderer, Consortium Zenith BUCG Sdn Bhd. No cash will be paid but payment will be made in the form of 110 acres reclaimed land in Tanjung Pinang.

For Teng to claim that the reclaimed land is non-existent is a shameless lie as BN had approved the reclamation of 940 acres at a shocking price of RM1 per sq foot and 10% of the land to be given to the state government. Can Teng explain why BN had sold the land at such a low and illogical price of RM1 per sq ft? The PR Penang state government had managed to increase the amount of land to be given the state from 10% to more than 20%, which will be used to finance the construction of the 4 major highways.

The horrible traffic congestion a few days ago on the 1st Penang Brigde due to repairs on the bridge reminds us of the importance of having this 3rd link for the future. Whilst the 3 highways mitigating the traffic congestion to Batu Ferringhi, around George Town as well as Bandar Baru Air Itam and Farlim area is necessary, the 3rd underwater sea tunnel serves another function to spur economic development in Seberang Perai Utara(SPU).

The Penang state will not sit back and do-nothing on traffic congestion by taking the easy way out in blaming the Federal government for failing to provide public transport. Neither will we adopt an island-centric approach but instead develop a state-centric approach that encompasses the needs of the mainland. If there is a bridge linking the island in both Seberang Perai Tengah and Seberang Perai Selatan, there should be a link at SPU to advance economic growth.


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  1. At Tanjung Pinang, we build the best; stairway to heaven. Only rm1mllion you will get the short cut to paradise. Your lifetime opportunity to have panoramic view of angles dancing on the clouds. Near amenities; the undersea tunnel , no congestion and paired roads to sandy beaches. Only bumi’s lot left, book now! 99.999999% financing available. No CRIS or CTOS checking! Just pray to Tokong and vote DAP!

  2. Just wonder aloud whether Guan Eng still has the mood to give super high density and super high plot ratio for his developer friend to make rm10billion revenue to complete his mega project. I put my bet that this mega project like the tiger park will be forgotten by the developers when they learn to count and compute. You deserve the government you chose, vote for it no hesitation please!
    Rama, you win! I give up!
    Anil , congratulation for having such a great leader! YOU WIN TOO!
    pOOR ALIRAN you should ask for a yearly allocation for your tireless effort to defend the Emperor with his new clothes!
    Penang Forum why so chicken, when are you going to decide what to do?

  3. if you have 100 acres of land and given the rights to build 100 units of super condo per acre, you will end up having 10,000 units of super condo. If you sell each unit at the price of RM1million, your total revenue is RM10billion. Tell me with no certainty that you are capable of selling it at RM1million with this type of super high density. I will give you the top salesman award. Guan Eng seem to deserve to be given the top salesman award. What a performance! Make sure no abandon projects, we don’t like to rescue as we are not so smart like Emperor parades before his subjects in his new clothes…
    I am hopelessly stupid as I can’t see the fabric . The rm8billion mega road expansion and undersea tunnel projects have became Guan Eng’s expose of the hypocrisy and snobbery he found there when he finally gained admission!
    No one believes, but everyone believes that everyone else believes that Guan Eng is the greatest and smartest politician we ever met in our lifetime. Vote for Guan Eng, not change!

  4. The cyber troopers thinking that with their all out bodek comments , they will save the days. Wait till I tell you the story of the Emperor with his new clothes, I wonder whether you guys still thinking that you are smart.
    Lim Guan Eng can go ahead with his mega project provided that
    1) the state government give no guarantee to banker over any financing r
    2) No compensation for the developer in the event any thing happened
    3) No monetary payment at all to be paid to the developer
    4) No bailout in event anything happened.
    I have never seen any fool like this before. When I was told about the story about the king with his new clothes I thought it was not funny at all. Now whenever I think about it I can’t help but laughing! Hee Hee Hee Hee Hee Hee Ha Ha Ha Ha Hee Hee Haa Haa

  5. Whatever the outcome, we can all appreciate that the state government (even more impressively by the CM himself) can engage with the people to listen and discuss about decisions made.

    Obviously, it would be great to listen first before acting but that also mean having to choose a side as opinions divide. We entrusted PR in 2008 and if we think they are not our best option moving forward, then we will make it clear when we decide again (soon, very soon).

    From where I see it, the current state government is still far better than what the alternative had and can offer. 🙂

  6. As Penang Lang, I agree with more booster to state economy but smooth traffics. Well, very clear that we has been promised by BN so many years ago on this and that, and end up spend more money to constructing MPSP building, what that shame. Btw, past is past, we should look forward. May be some say LGE are too ambition on implementing or developing the state, but can we wait for the failure to the state? No is my answer. Penang must diversify it economy portfolio other then just focus on Manufacturing so that will bring more benefits to Penangites.

  7. Anil and LGE, please stop the drama. The projects will go ahead as mentioned by LGE. It is too late for any damage control exercise.

    MACC should check for any elements of corruption as LGE is so pushy, adamant and even tries to FAST TRACK it unnecessarily.

    Finally, let me remind all of us. We have alternative choice. Let’s vote BN at state and federal for a comprehensive revamp of transport system in Penang.

    p/s: Why delete my comment again ??? Your site kena HACK kah ??? Or my comment is not following the comment guideline ??? Tell me so that I can improve.

  8. I have no idea why replying or giving a comment about a comment is deemed as a complain. Nevertheless – EIA consultants are supposed to be independent regardless of who the payer is.

    “The better plan would be for the state to appoint the consultant after discussion with stakeholder” – this I do not understand. What did you mean by stakeholders? Merriam Webster describes that as one who is involved in or affected by a course of action. If suggestions are to be agreed upon as to any appointments can be reasonably reached I am for it. However that alone cannot emancipate the fierce jaws of undue influence. Kevin , great comment though.

  9. Anil,

    Frankly, I was surprised by your views on the tunnel project simply because of your clear support to Pakatan Rakyat. I was just telling a friend the other day that most of us have lost the will to think and reason, having been blinded by hatred for the federal government. I do not support BN or Pakatan but only seek the truth. It’s reassuring to know that some of us can still rise above partisan politics. Please continue to speak out no matter how ascerbic the Chief Minister finds you. If the CM had his way, we would had a tiger park… remember?

  10. Hi everyone,

    The proposal to reintroduce the tram as part of the greater traffic dispersion programme, with its accompanying opening up of North Seberang Perai for speeding economic activities there, especially so with the BN Federal Govt always sabotaging proposals by the State and its consultants, should be welcomed!

    A more comprehensive plan on traffic dispersal cum social and economic upgrading in Pg can be worked on when PR captures Putrajaya in the 13GE as well!!

  11. No trams please. Imagine the traffic jams! What we need is an MRT, underground in heritage or sensitive built-up areas, above ground elsewhere to save on costs. And a Master Plan to allow higher density commercial and residential development that will link to the MRT stations.

  12. Anil I do not usually reply to any politics on another counrties . But First I must agree with you on this one, Read Chief Minister Press realise I am glad he supports NO MONO RAIL because of UNESCO Heritage of Georgetown, As one of the Guest Speakers on the Conferance on making Georgetown Heritage Listed I agree with Him Lets see common sence put LRT or Trams back.

  13. Anil,
    Don’t be so naive. With development it enhance the properties around it and in the long run it bring in investment, jobs and businesses for the people. Just like 40 years in the early 70s there was objection developing Bayan Lepas which was padi field and NGO also protest against it due to the very same reason you and the NGO are now objecting. What happen 40 years later it bring in investment, housing, jobs and businesses and enhancing the property value and our image as an efficient manufacturing business concern in the eyes of the world.

    Its good that the LGE PR govt continue to develop and build infrastructure such as the tunnel bridge to lesson the nightmare in the Gelugor and Bayan Lepas areas. The area along Gurney will definitely be reclaimed out and right to Tg Tokong Straits Quay. With it come development, businesses, investment and creating jobs and enhancing the values of the properties along the areas. With the land reclaimation, traffic will be diverted instead of just being concentrated along the Tg Tokong/Tg Bungah/Batu Feringghi Road. Yes condo along Gurney will be affected but its a small price to pay.

    As for the cost it of building the tunnel it is a small price. Its either you build and pay for it and then collect your own tolls or let someone build FOC and let them collect the tolls.

    In the case of the Penang bridge it uses the rakyat monies while the concession to collect tolls go to the BN UMNO cronies In this case its the China company that build for free and collect the tolls. Its a win win situation

    We need infrastructure but the Federal govt is sabotaging every move including the Selangor water issue. As such LGE PR has no choice but to seek out the best possible ways and solutions. Take for example which the Federal govt which earlier agrees to sell of the water concessionaire but is now blocking the Selangor govt move.

    While the BN Ah Cheap UMNO govt continue to sabotage, it pain me to see that another 5 police personnels have been killed. While the Hisham UMNO Ah Cheap are quick to take action against our own people and protesters who are unarmed, they are dragging their feet on armed terrorist who have intruded into our country and compromise our sovereignty.

    Frankly, is there an agenda to use this issue to drag and prolong the election that have now resulted in 7 personnel killed which should have been avoided.

    Let us give our full support to the PR govt but we can always give our views and ideas to make it better. LGE has the courtesy to reply and explain and it shows that he did look and take into consideration yours and the NGO views. Does the BN do that such as the AES, Lynas and many others.

    BN UMNO 55 years of incompetency, corruptions and scandal is enough. Proof is in Altatunya, Scorpene, Port Klang, PROJECT ic, stadium collapse etc etc etc and now 7 police personnel lives have been lost unnecessarily.

    Let us all gives the full support and vote Pakatan Rakyat for a CHANGE.

  14. Anil & company, With due respect, your group does not represent all Penangites, so does LGE and other special interest groups. The way to resolve this is to have a public referendum where we can vote to support or reject the project. I have no ties to DAP but I stronly support this project. Further, it is impossible to get 100% support for any project. A referendum will be fair & square where majority rules. Is not that what democracy is all about? What you practice is skew democracies for your own fame & interests. You do not represent all the Penangites. LGE is wasting his precious time just to make you happy!

    • It was the survey of the Penang transport masterplan consultants, appointed by the state government, that showed the respondents preferred a public transport-based option rather than a highway-based option. The consultants had also indicated that the question of a tunnel was not a priority now and should only be considered for 2030 and beyond.

  15. LGE is actually in a worst bind then he is telling. The truth is EVEN if PR takes over Putrajaya, they still may have to do this or part of the project. That is why its on the table.

    Take for example cross channel rail link – its the long term solution and should have been incorporated in the FIRST BRIDGE. It was not because they had to make a choice between skimming from the project and putting the contingency in when the then volume of the bridge did not even justify the bridge in the first place.

    The second bridge was build in-lieu of expanding the first bridge and incorporating future rail for ‘expanding new opportunities’ – again exerbating the problem because now the volume of any rail is not going to be enough.

    If PR takes Putrajaya, the cross channel tunnel need not be done but the highway portion may still have to be done. The first bridge can be expanded and a rail linked added in the future – not a cheap alternative and it would mean losses for the second bridge..

  16. Penang’s Chief Minister Lim Guan Eng is so “arrogant” that he actually sit down to read and make a reply.
    His explanations are point to point basis and in easy to understand simple English.
    Not just by points but added in some proper logic to it.
    Many of us didn’t realize that the public transport licensing part is under the federal control.
    To many of us , a bus is a bus and just give it a route to run.
    But the state govt cannot issue such license.
    The same problem with holding Local Election.
    Side track a bit – When Anwar was the DPM, Anwar uses strange Malay language that even the Malays does not understand. Hopefully Anwar will not ever uses such flowery Bahasa that nobody comprehend.
    How not to vote for Guan Eng? Do give him and his entire team another term.
    Too bad he is just for Penang.
    *not polishing his shoes but he is really working for Penang’s sake and as a good example to other CM.

    • Fuly agreed with you.

      I think LGE only responded to responsible bloggers like anil.
      Anil writes with facts and considers points of views of rakyat, and knows Penang matters inside out to provide a fair refletion. However, there is a prominent Muar blogger who always criticised LGE in his blog because of personal vendetta. He also raised the same issue but clearly unconstructive e.g. asking Penangites to reject LGE. It is good that LGE ignored him.

      I think the tunnel project is good for the development of Butterworth, namely Bajan Ajam. Penangites can use this tunnel, (possibly cheaper the the bridge?) and could opt to buy and stay in cheaper properties on the mainland. It will also help to bring more economic activities to Butterworth.

      • Anil has provided a more balanced reporting on the project, its pros and cons. The reporting of this issue on The Star is totally one-sided to suit Gerakan/BN in order to put bad light on LGE especially in the eyes on people outside Penang. The Star is MCA-owned and is regularly used as a referene by MCA-friendly supporters like that prominent Muar blogger (he has openly asked Penangites to reject Pakatan Government in Penang!).

  17. How many who criticize a Government Proposal or Project gets a reply from the Head of State himself ? Most, if not all are just plainly ignored !!

    The reply from our CM to Anil clearly reflects the openness that we enjoy under the present State Govt.. and trust me, it permeates to many levels in the agencies under the purview of the Penang State.

    As I’ve always mentioned in my “Letters to the Editor” to The Star (which fails to see the light of print many times !!).. “Together, we, the Rakyat can make Penang a better place for all” or even as our CM says.. To make Penang the Number 1 State !!!

  18. Well done LGE. I have been following on this issue and as a concerned Penangite these are my comments :
    Have u heard of the storey of the father, the son and the donkey, because they listen too much on people’s opinion they ended up carrying the donkey after the son then the father and then both of them rode the donkey after listening to people. Morale of the storey do what is best for penang,
    I think if u have 10Ringgit and u can get back RM100 then its just fantastic. E&O reclamation will go on irrespective of whther u build the tunnel or not. Looking at the numbers for a RM 6.3 billion u r paying with the 110 acres means u r giving them the land at 1300 per sq ft. The consortium is taking a big risk with such a high land cost what kind of profit are they looking at in development based on many other development projects.
    The 30 year concession without a traffic guarantee means that if they do not get their ROI they will risk losing money> Tunnel built but no guaranteed returns.
    I dont know how u did it LGE but kudos to u. If it was a BN project for certain it will be given to some company very familiar to us. No chance for new comers. it will probably be 8 to 12b. eg IJM got 330 acres for the Lim Chon Eu expressway. Surely if u do the maths then u can guess what kind of generous offer was made.
    So its a question of choice. What do u do to leverage on your 110 acres. I say kudos to u. Cant imagine how much billions u would save if u took over putrajaya.

  19. CM LGE has explained it loud and clear.
    From Selangor to Penang & Perak instead of concern for the rakyat, we have seen the true colour of Ah Cheap BN UMNO who are intend on sabotaging the PR state govt to stay in power. We have seen their stupidity and incompetency in the handling of Lahad Datu where 2 of our good men have died.

    Can we allowed such incompetent and stupid Cheap PM to continue running the country. Sahah is now a gone case for UMNO BN Ah Cheap. So is Johore and Negeri Sembilan.
    The people have awaken from their slumber. They are now ready for change

  20. Kudos to the CM who has done pretty well even though for a short span of time in Penang without the support of Federal Govt. For 18 years, the previous administration did not do anything.

  21. It’s too late for LGE to do damage control exercise !!! Most Penangites know your true color !!!

    Before, there was talk about voting BN in federal and keep Dap in state. Now people have realized that it’s not a bad idea to vote BN both state and federal.

    Hmm, I think that is fair reactions from local voters.

  22. The China firm is the favorite firm even before the tender is being called. Therefore it is essential for Guan Eng to come out clean that the tender process is not fixed to favor the China firm. In the name of Competency, Accountability, Transparency and open tender, Guan Eng should voluntary make public all information regarding the post tender negotiation to prove that there is no conflict of interest.

  23. So, Gherkin, tell us when your bo hood ever bothered to be as engaging as this? No trolling and be specific like Deepak if you have something to say.

  24. For a young nation Timor Leste has a better and well defined procurement guide. If Guan eng has not abused the so called open tender process, he should make everything public to prove that his state government has handled the open tender with due diligent and fulfilled at least majority of the principle as described at above-comments.
    The tender guide can be found at http://www.mof.gov.tl/wp-content/uploads/2011/05/5-procurement-best-practice-guideline-tender-negotiation-en.pdf

  25. There you go!
    Willingness of the state government to respond and have dialogues with stakeholders. This is also true for other opposition members like Anwar, Nurul etc.
    Compare this with the position of the ruling government led by BN. Nong chick has chickened out saying debate is not the BN way. Najib refused to debate a national document, the Budget, immediately disappearing after its presentation in Parliament. In fact this is an insult to the Agung, as the Budget is His Majesty’s government proposal for how monies are to be spent.

    So, lets open our eyes and listen. Who would serve the peoples interests better – folks who hide and keep everything under wraps or those who believe and practice transparency.
    Aren’t we just tired of the way things have been and the way they have been run. Poor governance is no governance. And throwing bags of rice at the people smacks of an arrogance and contempt for the rakyat that only hypocrites can do and pretend they are God’s gift to the country

  26. Post-tender negotiations: 4 key steps
    Following tender scoring and evaluation a short-list is prepared. Any post-tender negotiations with these tenderers that follow should be conducted according to a planned approach as described in the steps below and in the following pages:
    1. Confirm Negotiating Team, Responsibilities & Objectives (based on Procurement Team)
    2. Planning & Pre-negotiation Consolidation of Team:
    Agreement and unified approach upon;
    ◘ government requirements;
    ◘ quality and evaluation of short-listed bids;
    ◘ current economic market and ◘ negotiation strategy: objectives and preferred settlements.
    3. Direct Negotiations
    First and subsequent negotiation meetings and correspondence with tenderers carried out in accordance with the negotiating policy and principles set out here in the following pages.
    See Example below for illustration of possible outcomes of post-tender negotiations.
    4. Pre-contract award negotiations

  27. the following is the Procurement Best Practice Guide of Timor Leste – a new
    The aim of post-tender negotiations is to obtain the best outcome and commercial arrangements for the government. Negotiations should not just be seen as a process of selecting the lowest-priced, compliant bid. Post-tender negotiations should be considered an important part of a purchasing strategy in all government procurement. Some key principles should prevail:
    1) Equal opportunity for tenderers
    Once the tender is closed the procurement team makes an initial assessment and selects the best bids to make up a short-list. These short-listed tenderers are selected on the basis that they satisfy mandatory and desirable criteria and offer acceptable solutions. Once the best bids have been selected, or short-listed, it is essential that the equality of opportunity these tenderers (or preferred bidders) is maintained throughout the post-tender negotiations. This can be achieved by ensuring that the following occurs:
    • if any changes to the requirements are made (which do not substantially alter the specification) then all short-listed tenderers are given the same information and have the same opportunity to revise their offer; and
    • the same general questions and propositions are put to all short-listed tenderers (e.g. the
    opportunity to improve the solution tendered and/or reduce the costs in a last and final offer).
    In this process questions of clarification from particular tenders can be answered.
    2) Competitive negotiations
    When post-tender negotiations are being made at the same time with two or more short-listed tenderers it can become a competitive process and such a situation should be viewed as a purchasing strategy that provides benefits to both buyer and seller. Usually such competitive negotiations are only done in high value ($) and/or large and complex purchases. This technique maintains a competitive market situation between the tenderers during the tender evaluation process and post-tender negotiations and one which
    places the purchaser in a good position to negotiate on price and terms. Although lower costs can be a likely outcome of post-tender negotiations, there are more issues to consider than just obtaining a lower price.

    3) The ethical and probity challenges
    Post-tender negotiations can raise serious ethical issues that arise when government officers engage with the commercial market, often referred to as probity. These challenges can be addressed through carrying out tender processes in an open, transparent and fair manner throughout the whole procurement cycle and ensuring all tenderers have the access to the same opportunities and information. There are a number of ways probity can be achieved (as listed below).
    a)Good record keeping
    b) Clear evaluation criteria
    c) Impartial and fair supplier relationships (open meetings and transparency in specification changes)
    d) Planned approach to negotiations and detailed negotiation guidelines
    e)Professional and objective price negotiations
    f)Trained and experienced negotiators

    • Who are you OES to try to teach Pakatan Rakyat about open tender, corruptions, nepotism, croynism? To begin with, everyone kows how corrupted are the BN officials. How the racist Mahatir neglected Penang during his 22-year rule with MCA & Gerakan’s support. I am amazed that people like you continue to be a lapdog for UMNO, selling your soul…!

  28. Hi everyone,

    To quote CM LGE that “The formal contract is still subject to discussion and is expected to be signed in a few months time and it will not proceed if rejected by the people.” shows responsibility of the current State Govt, for in a few months’ time the 13GE would be over!

    Let us then consider the following 2 scenerios post election:

    Scenerio 1: PR retains the State Govt while not winning the Federal Govt, then the current PR Govt would have taken the initiative of “not sit back and do-nothing on traffic congestion”!

    Scenerio 2: PR captures both State and Federal Govts in the next GE, then a review of the project if Penangites deem appropriate would also not be a problem!

    (I have ruled out the Scenerio of BN and UMNO Baru capturing the State as I believe and in fact is confident that BN and UMNO Baru is in a hopeless situation in Pg!!)

    So, Anil your contention that “In the election campaign, you and your colleagues can present a clear pledge to the voters of what you will do with public transport if Pakatan captures Putrajaya – rather than taking a big first step to committing to the highways and road-based tunnel (a cross-channel rail link would be a different matter) before the campaign.” would resonate with the above 2 scenerios!

  29. I am glad the he has at the very least taken the trouble to read up on the grouses that have been raised by people on this blog. One important point raised by Penang Forum and many times by Lim Mah Hui, is the appointment of consultants for the EIA. A ten year old would know that it is absurd to ask the contractor to appoint their own consultant and yet expect an independent conclusion and report. The better plan would be for the state to appoint the consultant after discussion with stakeholders. The contractor can of course be made to bear the fees but should have no say on who is appointed. This should be the practice for all development projects.

    • cares only for the welfare of the filthy rich who compromise a majority of one community and neglecting the low and middle income groups.

  30. My Kudos to you, Anil. This is what a true journalism is all about. You have shown the real concern on behalf of the people for which Guan Eng has promptly responded and we appreciate that.
    However, like you mentioned it will be a better choice if the CM waits for the outcome of GE. Guan Eng does not need to do what Najib has done recently. By the way if possible please offer a cource on jounalism to Utusan Malaysia.


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