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9MP Mid-term: Will Penang be punished for banishing BN?

UPDATED VERSION. It has been confirmed that UEM Builders Bhd, a Khazanah-controlled company, will only be awarded the job to build the Second Penang Bridge. The Government will decide later who is to get the concession to manage and maintain the link, and operate the toll collection.

The context is that the cost of the Second Penang Bridge has ballooned from the initial budget of RM2.7 billion in November 2006 to RM4.3 billion, or a jump of 59%, and still counting.

Under the construction contract, the cost of RM4.3 billion should include land acquisition and structural design of the bridge. However, UEM Builders also managed to slip in a clause that enables it to be shielded from cost escalation.

As Penang people demand for transparency on the project, it has been widely reported in the media that both UEM Builders and its JV partner China Harbour Engineering Company are at loggerheads on the issue of cost in any eventuality.

ORIGINAL POSTING

Will the three presents Abdullah Badawi promised to his home state -- the Second Penang Bridge, the Monorail and the Penang Outer Ring Road (PORR) -- be axed in the mid-term review of the 9th Malaysia Plan?

The mid-term review will be tabled in the Parliament tomorrow. Though there is an embargo of information till 11.30am tomorrow, media circles are saying that two of Abdullah's promised presents to Penang will be affected.

Both The Edge Financial Daily and Sin Chew Daily say the construction of the Penang Monorail will be delayed.

In addition, Sin Chew quoted sources as saying that the PORR, estimated at RM1.5 billion, will also be postponed.

Meanwhile, Nanyang Siang Pau concluded that both PORR and the monorail projects would be shelved.

Earlier, in April 2008, Finance Minister II Nor Mohamed Yakcop had gone on record by saying that the monorail and PORR projects may not take off as they have yet to be approved by the Federal Government and have not reached the “approval stage”.

Logically speaking, the PORR and the Monorail projects have been tossed about for over ten years. A decision to postpone them at this juncture of national development can be treated as being as good as dead.

So, will the exit plan allow the project proponents and concessionaires gain compensation without real work done? Themost recent example during this Abdullah Administration was the Crooked Bridge Project linking Singapore and Johor. The project was cancelled and the contractors were given megabucks for consolation.

Contrast this with late last year, in a bid mildly publicised, a consortium led by Malaysian Resources Corp Bhd (MRCB), an Umno-related company, had been awarded the letter of intent (LoI) for the monorail project. Contrary to previous media reports which put the pricetag at RM1.3 billion, it actually will cost RM2.7 billion -- RM1.3b for the tracks and rolling stocks, and RM1.4b for and signalling system, infrastructure and stations.

Will MRCB walk away free for the derailed monorail?

What's for Penang?

Should the plans for PORR and Penang Monorail be derailed, what would Abdullah replace and compensate Penang with for the severe of efficient public transport?

This is on the premise that individual and corporate entities from Penang have paid their income taxes to the federal government and they deserve a payback in local development.

What will Abdullah pay back to Penang? Punish Penang for kicking out the BN state government in GE2008?

We shall await the moment of truth soon to come.

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The problem with the Penang people is that they are short sighted when it comes to town and population planning. They do not foresee the growth of the Island in terms of people and traffic, making noise when the government decides to build the monorail the PORR. Hahaha, now their wishes are all granted and I hope in the next 5-10 years they don't complaint.

Although the PORR and Monorail plans are not as ideal as it should be in a clean government, however, the idea behind these development projects is for people to live better lives in the future. Thus a bit of suffering is needed before this.

The state government should do something about the buses. When I was young and in school, I think the buses at that time did a very good job, which was under the MPPP. Because you are Chief of Staff to the Penang Government, you should dig out the council's old plans on public transportation and use it. It was a good plan and it is because of the BN's greed that made all things privatised like right now.

JEFF OOI says: We are held by the balls. To operate buses, we need permits -- just like taxi permits -- issued by the Commercial Vehicles Licensing Biard (CVLB), which is a federal agency parked under the Entrepreneur and Cooperative Development Ministry under Noh Omar. We are finding ways but can you help?

So move ass and start working!!!!

I think PR should be more creative. Before election PR asked for voters to deny BN 2/3 majority which the voters did plus gave another 4 states to the opposition. But now are the voters being punished? How is PR going to protect the voters? We need some serious counter measures.
Maybe, we can pay attention to other little little important things. Like security, transport, local governement's efficiency. Let's be bold and tell the the world BN has stopped the funds, projects. Is it because the CM asked why the cost esclated? or because he asked why no open tender?

i suggest that gov should be well plan for the public trasport and build underground LRT that coverage mainland until the island.

JEFF OOI says: The cost of an underground system ranges three to five times that of the ground surface system like monorail, subject to technology, land cost and soil condition. If Penang should have an underground LRT the length of the proposed monorail, it may go up to as high as RM12.5 billion. Penang Island has less than 1 million people and the LRT network, as proposed, will cover only the inner city and satellite neighbourhood. The captive traffic may be as low as 150,000 people per day, which covers some 20% of the domicile population. You can calculate the sustainability model from there.


the route from mainland to island can divided to main road (for cars) and another one for LRT (public transport) to replace the second bridge. in short, this can save the money to build the second bridge and also help in public trasportation. the wide coverage LRT would benefits the mainland people and also to island penangite. as we know, light monorail in s pore has been a success. i strongly believe underground LRT can help penangites and hope sir do consider and discuss in parliement or discuss with your "boss".

HI Jeff,

"Commercial" vehicles are governed by the federal agencies.

Then what if it's "service" vehicles provided by the municipal council?

JEFF OOI says: Service buses, like the London hop-in hop-out service for tourists, cannot charge fee for the rides. A good bus service in Penang may need 150 buses of 40-seater. We need to have a super-duper sugar daddy to pay off all the capital and operational expenditure. Volunteer sugar daddies please write to me.

Perhaps running shuttle van/bus from residential areas to central transport hub on a fixed schedule (and priority to the retirees).

Then I guess residents wouldnt complain for a minor increase in rates? (the residents get their monthly coupon from the municipal council).

The only thing that needs to be changed is payment of the council rates -- from an annual event to, say a quarterly/monthly event.

I dont think the BN goverment stupid enough to "punish" their own people. I fthey are really keen on getting them back in the next elections, that is one step backward for them.

Besides, I second anilnetto's joy that the PORR and monorail will be reviewed. The people's needs is one thing, but things like the environment and financial issues should be considered too for any future mega projects.

Hello all,

I think AAB should do like promises to. Losing in his own home state does not mean he would not do it. But atleast he felt regrets with his actions in cancelling and postponing the projects of monorails and the second bridges. Eventhough its quite late to implement back the previous prijects because of high costs of the materials which the effects from the increasing petrol and diesel prices, but still the projects need to go on for the sake of rakyat in Penang, and possibly to win the hearts of Penang rakyat in the next election to come. Lets hope that the government is making the right decision this time and not doing more mistakes again in the future.

Penang is better off without the overpriced bridge, the overpriced & low capacity monorail & the ridiculous PORR.

Cancel the bridge & expand the ferry service instead. Penang Port is under state govt right?

JEFF OOI says: Wrong! Very wrong! Penang Port Commission (the regulator and custodian of all Penang Port facilities including the container terminals, http://www.penangport.gov.my/) and Penang Port Sdn Bhd (the commercial unit, http://www.penangport.com.my/ are all Federal-controlled agencies. Get it from there amd work it from there.


If your guys can't run it, then do an international tender for ferry operations.

Expand the bus service & get the MPPP to agreesive clear obstructions off the streets (hawkers, illegal parking).

At least determine the feasibility of these 2 policies first before you go crying about victimisation by AAB.

but it doesn't make sense for the BN federal gov to punish the Penang ppl..if the experience with Terengganu is to illustrate any point..it is that the BN WOULD wanna get back Penang right?

It is a bit relieve now. I hope everything is on track. Let's be optimistic for now.

I am not a penangnite.

I have relatives there.

I agree that traffic congestion is bad in the Penang Island.

I don't think the PORR project will help much, in fact it could have adversed effects on the island's natural reservations.

Why not Penangnite start using technologies like Segway (Personal Transporter) and etc.

JEFF OOI says: I tried it in San Francisco. No, it's not rapid transit movers.

It is not impossible within the George Town proximity.

Next time, take the 2/3s and you guys hold their balls...and squeeze hard.

am an environmentalist... doesn't feel bad for scrapping PORR... and lesser extent monorail... Well... monorail is good... but how to avoid the damage done to Georgetown and whether or not the monorail model could be extended across the bridge should be considered before hand... ;) The thought of Scomi getting the contract makes me not fancying the monorail... :P Oh, and the UEM second bridge... :(

Anyway... I read news from kwongwah that the Penang Port wishes the state government to take over the ferry service? Ahhhh well... I hope so... =/

IMHO the only solution left is to considerably expand the existing bus transport system while taking steps to reduce traffic volume and alleviate bottlenecks
there push pull factors involved in getting things to change. Now there is a considerable push factor as the result of rising fuel prices but the mindset of Penangites have not yet changed and there is a reluctance to use public transport due to a lack of pervasiveness.

The bus system has improved considerably compared to previously, but there is still a long way to go.
Just increasing the number/frequency of buses and routes will not address the problem completely. No point taking buses if the buses are going to be stuck in traffic jams most of the time. Bus/taxi lanes need to be created (and rigorously enforced!) in spite of the inherent difficulties of doing so on Penang's existing narrow roads. Where possible, sufficient road margins need to be allocated for such purposes as well in newer townships/developments. Once buses are capable of providing extensive timely and regular services, more and more people will be convinced to leave their cars at home and this will help reduce the congestion further. Having an automated bus pass system, comfortable bus stops as well as an extensive and well publicized bus guide will help the public plan their bus trips and make taking a bus an even more conducive experience.

Steps to reduce peak hour volume can also help make things more manageable. E.g., a main cause of peak hour traffic jams in Penang is parents picking up their children from schools. This has a cascading effect which slows down traffic near schools for blocks. Encouraging/incentivising the usage of school buses (and providing proper parking facilities for those buses, and perhaps staggering the release hours so that not all parents converge at the same time at the same place may help reduce congestion. Strict enforcement of traffic laws especially with regards to no parking and no stopping zones will help reduce impediments to traffic flow. Just take a look at the road in front of the Pulau Tikus Police station. Road users regularly make a mockery of the no-stopping zone (in full view of the police) by stopping there to pick up their laundry or do their shopping.

JEFF OOI says: We are held by the balls. To operate buses, we need permits -- just like taxi permits -- issued by the Commercial Vehicles Licensing Biard (CVLB), which is a federal agency parked under the Entrepreneur and Cooperative Development Ministry under Noh Omar. We are finding ways but can you help?

Aiyoo.. Apply for the relevant permits then! Just C.C. joe public. Paste the Ministry's replies on the net as well. I dont think applying bus license is under OSA. Or is it?

Jeff, I sympathizes with what you and the Penang Govt is doing for Penang even though I am not from Penang. The DAP Govt is doing a fabulous job despite a lot of 'obstructions' from the BN Govt.

Despite a lot of complaints from some people (who don't happened to complaint so much when it was under Gerakan/BN), let me state that you guys have my utmost respect. You guys are doing the best you can under such trying conditions. Keep up the good work! There are alot of people here that thinks highly of the DAP's way of governing. Please convey this to Mr Lim Guan Eng and team! A difficult but great job done under such circumstances.

If any idiot still wants to complaint, perhaps we should vote him in at the next elections and see what kind of shit he would doing.

The problem at hand right now is more of a legal problem that decides the administration of the Feds and the State government.

To Those who are from Penang and who has legal and policy knowledge of the MPPP when they operated the council buses, hear ye.

How did they operate the transportation systems and under which provisions of the law?

Has it been changed or reviewed legally or that the Feds just highjacked the whole transportation systems to feed their cronies through the CVLB?

Me and my hommies are trying to do some research here and it would be great if we can throw in ideas about circumventing this issue of the law rather than gloating how bad our transportation systems are.

Forget about the Mass Transit Rails systems which cost money and also building of roads.

I would also suggest that we could wade into the congestion charges idea but that's is secondary.

What are the means and way that the Penang State Government could operate and administrate its own transportation system without the interference of the Feds?

Throw in your thoughts my learned brethrens!

2nd penang bridge (PB)

sceptical of tis project remember the s'pores 2nd link in tuas linking johor , toll rates in tuas differ from the causeway in woodlands , moreover motorist using tuas will pay twice (1time when they leave singapore) (1more time when they enter singapore) wherelse in woodlands pay only once when motorists leave singapore. therefore majority of motorists will prefer woodlands comapred to tuas. now assuming 2nd PB had been completed , will motorist be paying same toll rates as wat they paid at 1st PB ? as stated in this blog construction cost had gone up 59% will they impose high rates @ 2nd pb just to quickly recover the cost? if it happens then i think the traffic woes situation will remain square one??????

Ok now the government already punish Penangites! So i hope Mr LGE and team here will have some solution to counter BN! Show to the world that you can live and fight without their support.

Please do it for the sake of all Malaysians...

I believe the BN goons can very well be that short sighted to "punish" Penang out of spite.

However this does work in a catch 22 way-- if you punish Penang, then the multinationals will leave and will not ever come back.

Which then leaves a big dent in the nation's economy.

My fear is that Pg ppl will start to grow impatient and want the old government back to restore the lustre years like they had "enjoyed" before.

Not sure, how far fetched is this, but perhaps time to form a republic in Penang?? :P

Hey Jeff,

Do you like challenge? We could throw a 'Deal or No Deal" challenge to the federal gov.

If Penang state is able to fund 50% for the projects then the federal gov should top-up the other 50%.

So Jeff..deal or no deal?

Lets get a study done on what we need to do and how to oerate the new bridge and how to improve the traffic system.

I know studies cost money, I am prepared to chip in, do a collection, the Penang people might surprise u, Jeff can u help here ??

Set up something like what Raja P did collection for his defence fund.

We trust the DAP and we want them to flourish and make us better then Singapore one day.

Penangites never believed BN's promises of the monorail in the first place. Even until today many are skeptical that the 2nd bridge will see light.

This has been Mahathir's policy and his legacy - to suppress the development of Penang so that the neighbouring states have a better chance to develop.

AAB sees no reason to discontinue Mahathir's policy - why should he do something to benefit the Chinese majority in Penang? BN's discriminatory policies will remain the same and will continue to be so until BN is no more.

Until then Penangites better look after themselves and do not depend on sweet talk and empty promises which are the nadir of UMNO and BN.

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