Penang looking for funding options to implement major projects, says Zairil

Diterbitkan oleh New Straits Times • 15/10/2020 • 12:29 pm

State Transport and Infrastructure Committee chairman Zairil Khir Johari said it was the state’s intention to see the Pan Island Link 1 (PIL 1) and the Bayan Lepas Light Rail Transit (BLLRT) projects kick start first or alongside the PSR.- NSTP/MOHAMED BASYIR

GEORGE TOWN: Penang is looking at numerous options to enable it to implement several major infrastructure projects alongside the controversial Penang South Reclamation (PSR) project.

State Transport and Infrastructure Committee chairman Zairil Khir Johari (DAP – Tanjung Bungah) said it was the state’s intention to see the Pan Island Link 1 (PIL 1) and the Bayan Lepas Light Rail Transit (BLLRT) projects kick start first or alongside the PSR.

He said it was widely known that proceeds from the PSR would be used to fund the numerous projects under the Penang Transport Master Plan (PTMP) project.

“According to the initial timeline, the reclamation will begin first, and once the state obtains proceeds from it, then the state will implement the PIL 1 and BLLRT projects.

“Nevertheless, the state feels the PIL 1 and BLLRT projects should start first. That is our intention. If not, then alongside the PSR.

“To realise our intention, the state needs funds. We are looking at several options to enable us to implement all the projects simultaneously,” he said when answering a supplementary question from Datuk Muhamad Yusoff Mohd Noor (Umno – Sungai Dua) on the matter.

The state opposition leader had asked if the massive reclamation would begin first before the major infrastructure projects or the other way around.

“I (raised this because I) am afraid of what happened to the Penang undersea tunnel project, where we give up land, the land has been developed and the (undersea tunnel) project’s feasibility study has yet to be completed,” he said.

Zairil said no land has been given for the undersea tunnel project.

Zairil then went on to explain that when the Pakatan Harapan government was in power at the federal level, the state had received the nod from then prime minister Tun Dr Mahathir Mohamad for federal guarantee for funding of the infrastructure project.

“The state is still following up on this issue.

“If we can obtain federal approval, then the state can proceed to take up loans or issue bonds for the infrastructure project,” he added.

In November last year, the Penang government said it would set up a special purpose vehicle (SPV) to issue bonds to pay for the state’s LRT project.
Chief Minister Chow Kon Yeow had said that the bonds would be guaranteed by the federal government as proposed by Dr Mahathir in the letter received by the state government dated Oct 15, last year.

Prior to this, the state government had applied for an allocation of RM10 billion in federal funding to cover part of the PTMP project but the federal government proposed for the state government to set up the SPV to issue bonds with a sovereign guarantee from the federal government.

Earlier, Zairil said the state government had obtained most of the required approvals to proceed with the PSR, PIL 1 and BLLRT projects.