GEORGE TOWN: Datuk Seri Dr Wee Ka Siong (pic) has explained how the actual cost of the Penang undersea tunnel project could have exceeded RM20bil.

"I have already explained and it can be seen from my Facebook post five days ago.

"Did he pretend to not see it?

"The truth is, I am questioning the actual cost of the project, which is RM20bil, and not RM3.6bil.

"At the same time, I am challenging Penang Chief Minister Chow Kon Yeow to a debate to reveal the truth, whether it's RM3.6bil or RM20bil?

"What else does he want to say? What is his excuse to avoid a debate with me?" asked the MCA president.

In his Facebook posting, Dr Wee explained how Penang people would suffer a financial loss of RM20.54bil due to the controversial undersea tunnel and the three paired roads project.

Among his arguments are that the special purpose vehicle (SPV) in charge of the project was given a 30-year concession, meaning a conservative average of RM100mil of toll collection a year meant the concessionaire would rake in RM3bil throughout the 30 years.

He also questioned how a project that was tagged at RM6.34bil six years ago would still cost the same in 2026, which is when the construction is expected to begin.

It would appear that inflation and increase in land prices in Penang were not taken into account, he said.

Dr Wee had earlier issued a fresh challenge to Finance Minister Lim Guan Eng to debate the project.

He said Lim had previously rejected his bid to hold a debate on the matter, with the contention that Dr Wee was not the MCA president at that time.

Dr Wee, who is now the MCA president, said he could debate Lim now.

He added that he did not mind debating Chow in his capacity as the chief minister if Lim continued to chicken out by giving other excuses.

Chow agreed to the debate on condition that Wee explained the RM20bil figure for the tunnel and road projects, and only if Lim did not want to debate.

He said what was brought up by Dr Wee was RM16.4bil more than the cost of RM3.6bil, as mentioned by the state government.

"What is there to debate if it does not help the state government to reduce its cost?" asked Chow.

The state government is paying for the mega project via a land swap of 44.5ha of reclaimed land in Seri Tanjung Pinang and a toll concession for the tunnel for at least 30 years.

Besides the undersea tunnel project, the other projects are the 5.7km Ayer Itam-Lebuhraya Tun Dr Lim Chong Eu bypass, North Coastal Paired Road between Tanjung Bungah and Teluk Bahang and the bypass connecting Gurney Drive to Tun Dr Lim Chong Eu Expressway.

Read more at https://www.thestar.com.my/news/nation/2019/09/05/dr-wee-i-have-explained-how-penang-tunnel-project-exceeds-rm20bil