Tunnel-highways: More details on firms needed


The Penang state government has released some details of the companies involved in the tunnel-highways project – but more details are required.

In particular, we need to know who are the individuals behind Zenith, Sri Tinggi and Juteras, which will be given sizeable stakes in the project.

Zenith has a paid up capital of only RM3.5m but, together with the firm from China will be given a 70 per cent stake in the project. Sri Tinggi and Juteras have a combined paid up capital of only RM4.7m, and yet they will be given a significant 20 per cent stake in this RM6.3bn venture – and a share of the toll revenue?

Are these small obscure firms controlled by bigger players or even listed firms?

What particular expertise do these small companies bring to this project and who are the main players behind them?

Does the Penang state government get a share of the toll revenue over the 30-year period? This share could be used to finance public transport. In the early years of the Penang Bridge, the Penang state government used to receive a small share of the toll revenue – but even this was taken away by the federal government under Mahathir.

As mentioned earlier, the general election should not be regarded as a referendum for this project. The general election is all about whether people want the BN to remain in power. It is not about whether people want the tunnel and highways. Nothing else should be allowed to muddy the picture.

Kenyataan Akhbar Bersama Setiausaha Kerajaan Negeri Pulau Pinang Dato Farizan bin Darus dan Pegawai Kewangan Negeri Pulau Pinang Dato Haji Mokhtar bin Mohd Jait di Komtar, George Town Pada 4.3.2012.

Tidak Benar Sama Sekali Bahawa Projek RM6.3 Bilion Akan Dijalankan Oleh Syarikat RM2 Bila Sebenarnya Modal Berbayar Keseluruhan Adalah Sebanyak RM 4,549.2 Juta.

Sebagai Pengerusi Lembaga Perolehan Negeri Pulau Pinang serta Pengerusi Jawatankuasa Teknikal dan Kewangan masing-masing, kami rasa kesal bahawa proses pemilihan tender yang dijalankan secara terbuka dan telus untuk 3 lebuhraya utama daripada Tanjung Bungah ke Teluk Bahang, Bandar Baru Air Itam ke Lebuhraya Tun Dr Lim Chong Eu (LCE) Persiaran Gurney ke Lebuhraya LCE  dan sebuah terowong bawah dasar laut daripada Persiaran Gurney dan Bagan Ajam telahpun dipersoalkan oleh pihak tertentu.

Kos projek ini dianggarkan oleh kerajaan sebanyak RM8 bilion. Akan tetapi selepas proses tender terbuka secara kompetitif dijalankan sejak 14.11.2011, surat niat telah dikeluarkan pada 6.2.2013 dengan harga lebih rendah iaitu sebanyak RM6.3 bilion, yang terendah di antara semua pembida yang diterima. Projek ini agak tersendiri dan unik kerana kos RM6.3 bilion dibiayai bukan dengan bayaran wang tunai tetapi menerusi “land swap” sebanyak 110 ekar di tanah tebus guna di Tanjung Pinang.

Memandangkan bayaran dibuat menerusi “land swap” dan bukan secara bayaran wang tunai, maka adalah perlu kontraktor berpakaran bekerjasama dengan pemaju. Konsortium Zenith BUCG Sdn Bhd adalah sebuah special purpose vehicle (SPV) yang merupakan konsortium usahasama di antara syarikat kontraktor berpakaran dengan pemaju seperti berikut:-

  • Zenith Construction Sdn Bhd bersama China Railway Construction Corporation Ltd sebanyak 70% ekuiti dengan modal berbayar sebanyak RM 3.5 juta dan RM 4 bilion masing-masing;
  • Beijing Urban Construction Group 10% ekuiti dengan modal berbayar sebanyak RM 541 juta;
  • Sri Tinggi Sdn Bhd 10% ekuiti dengan modal berbayar sebanyak RM 3.7 juta; dan
  • Juteras Sdn Bhd 10% ekuiti dengan modal berbayar sebanyak RM 1 juta.

Keseluruhan modal berbayar keempat-empat syarikat adalah RM4,549.2 juta yang memenuhi kriteria kerajaan negeri yang meletakkan modal berbayar minima RM381 juta. Konsortium Zenith BUCG Sdn Bhd mempunyai modal berbayar RM2 kerana ditubuhkan khas untuk ini (SPV). Sekiranya tidak berjaya dalam tender maka syarikat ini akan dibubarkan. Sebaliknya bila berjaya maka setiap rakan kongsi atau pemilik saham mestilah menandatangani surat penerimaan secara langsung dengan kerajaan negeri.

Surat niat atau “letter of intent” dikeluarkan kepada Konsortium Zenith BUCG Sdn Bhd pada 6.2.2013 dan kesemua pemilik saham secara berasingan juga menandatangani surat  penerimaan. Dengan kata lain bukan hanya sepucuk surat penerimaan tetapi terdapat 4 lagi (5 kesemuanya) surat penerimaan untuk memastikan ia dijalankan oleh syarikat induk masing-masing dan bukannya hanya dengan Konsortium Zenith BUCG Sdn Bhd.

Oleh itu adalah tidak benar sama sekali bahawa projek RM6.3 bilion akan dijalankan oleh syarikat RM2, bila sebenarnya modal berbayar keseluruhan untuk keempat-empat syarikat yang jalankan projek ini adalah sebanyak RM4,549.2 juta.

Apabila kontrak formal dimuktamadkan iaitu selepas perbincangan butiran lanjut pada beberapa bulan lagi, semua syarikat rakan kongsi diperlukan untuk menandatangani surat perjanjian untuk memastikan projek ini dijalankan oleh syarikat induk yang berprestij. Perlu ditegaskan bahawa China Railway Construction Corporation Ltd dan Beijing Urban Construction Group adalah syarikat pembinaan gergasi di Negara China yang telah menjalankan projek besar keretapi, terowong dan juga Stadium Olimpik “Bird Nest” di Beijing.

Sebagai rumusan, proses penilaian teknikal dan pemilihan tender dijalankan secara profesional oleh jawatankuasa yang dipengerusikan masing-masing oleh Pegawai Kewangan Negeri dan Setiausaha Kerajaan Negeri tidak melibatkan YAB Ketua Menteri. EXCO negeri hanya merestui syor bahawa tender dikeluarkan kepada Konsortium Zenith BUCG Sdn Bhd yang dibuat semasa ia dibentangkan kepada mesyuarat EXCO pada 30.1.2013.

Dato’ Farizan bin Darus
Pengerusi Lembaga Perolehan Negeri Pulau Pinang

Dato’ Mokhtar bin Mohd Jait
Pengerusi Jawatankuasa Teknikal dan Kewangan

READ MORE:  Proposed road projects in Penang not a solution to traffic problem
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  1. Messing up RFP with open tender to ensure one favored firm get the award is something we should put a stop if we really care about the rampant corruption in this country.
    In principle, an RFP:
    1) informs suppliers that an organization is looking to procure and encourages them to make their best effort.
    2) requires the company to specify what it proposes to purchase. If the requirements analysis has been prepared properly, it can be incorporated quite easily into the Request document.
    3) alerts suppliers that the selection process is competitive.
    4) allows for wide distribution and response.
    5) ensures that suppliers respond factually to the identified requirements.
    6) is generally expected to follow a structured evaluation and selection procedure, so that an organization can demonstrate impartiality – a crucial factor in public sector procurements.

    After evaluating the RFP and hold discussion with the vendors and set out the tender criteria, specification and shortlisting the vendor , only an open tender is called to determine the selection of final bidder.
    Post tender negotiation should not be deviating too far from what is spell out in the tender criteria, otherwise it is considered as an abuse of tender.
    What the Penang state government do is treating RFP as open tender, and enter the post tender negotiation to (allegedly) change and alter everything and anything to defeat other bidders in order to ensure that the favored bidder is selected.
    This is our champion , our hero who suppose to lead us in our fight against injustice, corruption, abuse of power. Shame on you, Lim Guan Eng!

  2. The tender was called in 14 nov 2011 and closed in June 2012. Konsortium Zenith BUCG Sdn Bhd was setup in 5 July 2012. Which mean Konsortium Zenith BUCG Sdn Bhd never participate in the open tender process. Legally speaking, Konsortium Zenith BUCG Sdn Bhd is a separate entity it does not represent Zenith, Sri Tinggi and Juteras, BUCG or China Railway Construction Corporation Ltd. How can the state government awarded Konsortium Zenith BUCG Sdn Bhd the project without calling for fresh new tender?
    This is very unfair to other bidders. It is the open secret that BUCG is the favor of Lim Guan Eng. This manipulation is smack of conflict of interest, abuse of power. It make a mockery to open tender, equal opportunity to all bidders, fairness, integrity and transparency. This (alleged) abuse of the post tender negotiation has set a very bad precedent for corruption, abuse of power and insider manipulation.
    A RM2 shelf company with small paid up capital and not involving in the open tender was awarded the letter of intent! Can Lim Guan Eng tell us how this can happen? Can Lim Guan Eng tell us that it is aboveboard to award an entity that didn’t participate in the open tender?
    Messing up a whole tender processes without strict adherent to rules and procedures to ensure one’s favorite firm get the tender is call a corrupt act, an abuse of power, a conflict of interest.

  3. Personally, I care less of what is in the plan. Isn’t it the pot calling the kettle black?

    We are at most two months from the GE13 and why the rush of getting them out the door so urgently? Didn’t we all hear in the past how DAP and opposition parties alike critisizing the govenrment of pushing out mega projects just before the GE? Hasn’t had DAP learn the lesson.

    LGE has been a great leader and for this, he committed a ‘cardinal sin’. He should leave the whatever grandiose plan to the next state administration. Could this be LGE isn’t sure he will win the next GE in Penang or he wants to leave his legacy in Penang before moving on to Putrajaya should PKR wins the GE13?

    I commended media and bloggers to continue seeking out the truth and potential conflict of interest regardless of who is on the helm. Bravos!

  4. This is an ultimatum that i would like to give to Lim Guan Eng. Step down and quit politic for good before it is too late! … i already get hold of enough info to put you in real trouble. Want to challenge? See you in court of law!

  5. The RM6.3 billion and a land swap deal of 110 acres.is no significant compare to the RM6.6 billion and a land swap deal of 171.3 acres ask by VST. This (allegedly) forced deal was designed to give the opportunity to BUCG. Guan Eng has made a mockery on open tender, equal opportunity, competitive negotiations. The deal has raised serious ethical issues that arise when government officers engage with the commercial market by (allegedly) asking Consortium Zenith and BUCG to accept a pre-fixed lower deal to defeat VST, often referred to as probity. The tender processes is not conducted in an open, transparent and fair manner throughout the whole procurement cycle that ensure all tenderers have the access to the same opportunities and information.
    It is time to report this case to MACC to put Guan Eng on trial in a court of law to answer for this strange and illogical arrangement.

  6. it seem like Consortium Zenith and BUCG was formed during the post tender negotiation. It was ask to accept the deal with four projects including the undersea tunnel for RM6.3 billion and a land swap deal of 110 acres.
    This is reported in malaysiadaily as follow:
    Its director, Datuk Zarul Ahmad Zulkifli said the state government was presently giving BUCG a `hard time’ since the contract, that has yet to be signed, is subject to terms and conditions.

    “Seriously, where can you get four projects including the undersea tunnel for RM6.3 billion? We had no information as to the amount our competitors had set for the projects. We had to dig and search (for information).”

    The consortium might not know the asking price of VST, but the state government had forced it to accept the pre-arranged deal to defeat VST!

    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

    Guan End administration is seem to be guilty of (allegedly) fixing the deal and (allegedly) denied VST Cemerlang with China State Corporation a fair opportunity for a fair and not favor competition for tender.

  7. Why VST were rejected when they were the original group that submitted its proposal to build all four projects asking price of RM6.6 billion and a land swap deal of 171.3 acres?

  8. open tender or negotiated tender? Initially CRCL had tied up with IJM Corporation Bhd to bid for the tender to build the 4.2km between Gurney Drive and Lebuhraya Tun Dr Lim Chong Eu coastal bypass. It seem like it failed to get the project and was subsequently ask to regroup with others and rewarded for the mega project. Is this the right practices?

  9. As what Yang pointed out in the 1st comment above.. with the names, we can just spend a bit of time (and a nominal sum, I think..) to search out in the R.O.C. at least the Directors that make up
    1) Zenith
    2) Beijing Urban
    3) Sri Tinggi
    4) Juteras
    + China Railway Construction Corporation Ltd

  10. I think Anil has a valid concern.

    For the last 50 years the rakyat has been taken for a ride with billions squandered.

    I see nothing wrong with Anil’s request for a full disclosure of the details of the tunnel project.

    Its about proper governance.

    We voted for a change, not more of the same thing.

    Whilst the DAP government has been many many times better than BN in Pg, it doesnt mean that its perfect.

    Full disclosure is a must.

    Pg belongs to the people of Pg…. Not the politicians….neither BN nor Pakatan.

    Politicians come and go. We are constant.

    If a mistake is made, we will left carrying the baby.

    Penangites got a raw deal with the JE.

    The tunnel project will be the biggest project undertaken by the current state govenment.

    In line with the CAT policy propounded by this government, i see nothing wrong with the questions raised by Anil.

    Any project undertaken by the government should be open to scrutiny of the public.

    Land price in Pg keeps going up and I’m certain thats what interests the Chinese consortium.

    So are we getting a fair deal?

    Will the enviroment be adequately protected?

    How will the tunnel affect our port?

    There are a host of issues that need to be address about the project.

    Bloggers and NGOs play the role of a watchdog to prevent any likelihood of abuse.

    They ask these questions on behalf of the people of Pg.

    These arethe same qestions

    Thank you Anil for your effort and keep up the good work.

  11. Whats the big deal. It seems there is a never ending issue of this project. First it was the peoject per se. Now its the companies involved. U shld be proud that huge companies like bucg and crcc teaming up with local companies. Will u guys be happy and satisfied if the contract is given to syed mokhtar or some other glc. Dh lah tu. Contact pun diorg tak sign lagi. Tak tahu jadi ke tak.

    • These companies want the project because they stand to gain a lot should the land that is to be reclaimed appreciate at the rate it has been appreciating over the post 4-5 years.

      Anil is right to raise his concerns and a responsible government is obliged to address such concerns.

      The people of Pg have a right to know more and the government of the day is obliged to provide such details and information.

      Otherwise we will be back to square one as with BN.

      Having voted this government into power, we are all duty bound to act as a watchdog to prevent abuse.

      More so if Pakatan takes over the Federal Government.

      The system BN has created is open to abuse and it will take time to fix and put safeguards in place.

      Pending that civil society has the duty to act as a watchdog to prevent abuse.

  12. it’s time for… LGE to go for a vacation for five years.you lost my vote this time.i hate TCY a lot but this mega project is a big no no.

  13. MACC, what are you waiting for ??? It looks like a very BIG FISH waiting for you very soon.

    Hmm, angel and angel gomen. Hmm CAT. Hmm the consequences of tokong-SHIP in Penang.

    Nobody can answer why such tiny company can get SUPER HUGE projects ??? Hmm a final BITE of 308 political tsunami !!! GONG XI FA CAI !!!

  14. Explanation by PR LGE has been given so are the details of the companies involved. Want to know more check with the SSM or Registrar of companies or write in again to MPPP. I am sure they will be more than obliged to give you the details unlike the BN UMNO Ah Cheap and their sycophants from MCA that hide everything such as the pornstar brother 78 millions or MCA PKFZ billions or Ah Cheap 1 billions scorpene and many more…………………


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