Press Statement by DAP Penang State Chairman and MP of Tanjong Chow Kon Yeow on Saturday, 2 December 2006 in Penang.

DAP objects extension of Penang Bridge concession and calls for transparency in the second Bridge project.

The Penang DAP is concern that the government may grant UEM Builders Bhd an extension of the concession period for the existing Penang Bridge to help the company raise funds for the Second Penang Bridge project.

UEM Builders has a 25 year concession which expires in 2018 for the existing Penang Bridge and it would be unfair to the people to extend the concession period.

According to a report in The Edge on November 27, the government may extend the concession for the first bridge because it is envisaged that the second bridge will take away a fair amount of traffic passing through the first bridge.

“Hence, the first bridge’s concessionaire is likely to suffer from lower traffic volumes when the second bridge comes on-stream. An extension of the concession is a simple way of ensuring the financial model of the first bridge is not disrupted,” an analyst said in the report.

The Penang DAP is also concern that there are indications that the UEM Builders may not be able to build the Second Penang Bridge on a strictly PFI basis. (more…)