This is the latest status of all the mega projects in Penang. These remarks are based on the Prime Minister’s reply to a question raised by the Penang Chief Minister in Parliament on 20 August 2008.
What the first three projects have in common is that the financial models were all messed up.
My comments and recommendations, for what they are worth, are in italics.
Second Penang Bridge: Federal government now studying the financial model put forward by Syarikat Jambatan Kedua Pulau Pinang Sdn Bhd, a wholly owned federal government subsidiary, based on a new bridge model. (I guess they messed up with the earlier financial model.) It is also drafting terms and conditions of a concession agreement before starting negotiations with the company. (Sounds like right hand going to negotiate with left hand.)
To cut a long story short: Still under study.
My recommendation: The cost has nearly doubled to RM5 billion. Turn it into a shorter rail link at a different location and allow the Penang State Government to hold a majority stake in the company.
Penang Outer Ring Road (Porr): Supposed to have been built under build-operate-transfer privatisation model. But not feasible without strong federal government support or high tolls. Federal government now facing financial constraints so unable to use development expenditure under the Five-Year Malaysia Plan to implement it. But project may be considered if private companies are interested.
To cut a long story short: No federal government funding.
My recommendation: Scrap it because of environmental concerns and future congestion. Move away from private vehicle ownership and introduce an integrated public transport system.
