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UPDATED VERSION. Take it or leave it. UEM Builders Bhd, an Umno-linked company, has been given until the end of September to decide if it is taking up the government's offer of a RM1.3billion contract to co-build the Penang Second Bridge.

Or else, other contractors will be engaged through a restricted tender to do the job.

This was revealed to the Penang state government, under the glaring eyes of reporters, by the head of Penang Second Bridge’s special task force, Zaini Omar, this morning.

He said the restricted tender, which will be opened to a select group of contenders, has to be adopted to save time as the project completion schedule has been set back by one year.

G2G yes, C2C no

In a written reply released by the Parliament in late August, the Prime Minister answered this blogger-Parliamentarian that the company-to-company (C2C) level of agreements to construct the Penang Second Bridge has yet to be signed by parties involved.

On the other hand, Zaini announced that the government-to-government (G2G) arrangement with China for its Exim Bank to provide a US$800 million loan to Bank Pembangunan of Malaysia for the bridge project will remain intact.

However, the project owner of the Penang Second Bridge will be now be shifted to a government-owned special vehicle, Jambatan Kedua Sdn Bhd (JKSB).

The estimated cost for the construction of the bridge remains at RM4.3 billion, subject to the costs of major materials like steel, cement and fuel.

UEM Builders now sees it contract value reduced to RM1.3 billion, which is restricted to the super-structure of the bridge.

Earlier, the Letter of Intent (LoI) awarded to UEM for the concession to collect tolls on bridge users has been withdrawn by the state government. The concessionaire will now be awarded through a tender exercise in UEM is allowed to participate.

Whereas, China Harbour Engineering Company Ltd (CHEC) has been given a contract worth RM2.2 billion for the sub-structure and the mid-span which features a cable-stay system. CHEC has agreed in principle with the job specifications and the project amount.

The balance of RM800 million will go to land-based infrastructure, whereby the original lavish interchanges on both sides of the straits had been re-designed to a practical diamond-shaped interchange.

Interestingly, Zaini also responded to Penang Chief Minister Lim Guan Eng's remark the internal rate of return (IRR) for JKSB should not exceed 9%, based on the formula the government worked out for the IPPs which were intended for an aborted windfall tax regime.

Zaini said the IRR has been capped at 6% instead of nine percent.

RM9.40 for toll?

Zaini put a 40-month period for the completion of the entire bridge. Working backwards, negotiations with the contractors must complete by the end of this month for the bridge to be ready and open to public by December 2011.

At the briefing, Zaini said the toll rate will be the same as the first bridge, which currently levies RM7.00 for both ways.

However, he hinted at a RM9.40 tag for the toll tariff when Penang Second Bridge is finally completed in 40 months' time, and the toll for the first bridge may have gone up by then.