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By ANDREA FILMER, The Star

GEORGE TOWN: The cost of the second Penang Bridge has ballooned from RM2.7bil to RM4.5bil within a year and the state government wants an explanation.

Chief Minister Lim Guan Eng said there was no reason for such a huge increase as the official rate of inflation in 2007 was around 2.3%.

“On one hand, the federal government says there is a 2% inflation rate, but at the same time they have allowed a 60% increase of about RM1.6bil for the second bridge.

“If the inflation rate is 2%, then the cost of the bridge should only rise by 2%, and if inflation is truly at 60%, then our salaries should be raised 60%,” Lim said after opening a building exhibition at the Penang International Sports Arena.

He said the federal government had to explain the steep increase in costs as Penangites would eventually have to bear the expense through toll rates.

When asked about the rising cost of raw materials such as steel, Lim said the producer price inflation was set at about 5% last year.

“The rise in the price of raw materials would also have been included when counting the inflation rate.”

On talk of Federal Government opening up the second Penang Bridge project for tender, Lim said he supported the move.

“The Penang government has always welcomed the idea of an open tender as it will produce the best and most competitive price for the second bridge. If the Federal Government plans to review the project and introduce an open tender, the state would be 100% behind the move,” he said.

The project was awarded last year to UEM World Bhd which formed a joint venture with China Harbour Engineering Co Ltd (CHEC) to build the second bridge.

Comments (46)

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written by grant, June 12, 2008 17:59:54

what else? makan duit la... ballooned by 61%??? already mentioned, these donkeys dont even know how to add 1 and 1 let alone say manage the country's finances ...

they think people are all stupid and staying on the trees... what kind of bridge at 4.5Billion? gold plus titanium with diamonds is it??

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written by hckit, June 12, 2008 18:04:01

If the bridge too cheap, Government may not want to build.

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written by teohsh, June 12, 2008 18:13:13

From $2.7 Billion to $4.5 Bilion? I am SHOCKED!

With $1.8 Billion increase, or 67% INCREASE, I think there is no choice.

I totally support YB LGE's call for OPEN TENDER.

Anything else is a farce.

OPEN TENDER PLEASE!!!

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written by semut, June 12, 2008 18:16:30

they don't understand.. all UMNO stupid one at school.. seriously..
makan, tido, rasuah, tipu rakyat, cium keris je dia tau..
aku anak melayu malu dengan pemimpin UMNO.. BODOH!!

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written by Angela Ooi, June 12, 2008 18:18:49

Since perception is everything, the rakyat's perception is that UMNO has to have it's cut of 1 billion. Factor this in!

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written by cahaya, June 12, 2008 18:21:34

some interesting thoughts:

Chief Minister Lim Guan Eng said there was no reason for such a huge increase as the official rate of inflation in 2007 was around 2.3%.

“On one hand, the federal government says there is a 2% inflation rate, but at the same time they have allowed a 60% increase of about RM1.6bil for the second bridge.
“If the inflation rate is 2%, then the cost of the bridge should only rise by 2%, and if inflation is truly at 60%, then our salaries should be raised 60% . . . ”

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written by grant, June 12, 2008 18:26:45

clting, may i ask how u gonna do that as u proposed?

how is LGE going to ensure that even if the cost is ballooned 1000% he is still able to guard the funds from being channelled to the UMNO pockets?

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written by Bourgore, June 12, 2008 18:32:20

d increase in costs is 2 cover up all UEM HUGE LOSSES in oversea projects mainly in Qatar n India cos all oversea projects r tendered n won by UEM when UEM started their oversea projects few years back there was BIG news in mainstream media but now there is NO news at all

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written by Ray, June 12, 2008 19:22:36

Scrap the project and build a shorter one. Call for open tender for the new bridge and you will be surprise the cost is less than 1.5b UEM pricing is ridiculous, 4.5b and counting.

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written by shangrilapeace, June 12, 2008 19:28:53

What Lim has questioned and expect a good answer from the Federal government is the right thing to do. 60% increase in one year & paid by the Federal government is not a good sign to go ahead as well as the expenses to be supported by the toll rates. During this critical months, the belt should be tighten at all costs. The Federal government have to give a careful & constructive reason or alternative, otherwise expect 2nd blow again. Lim, stay on course, you are doing the right thing for Penang.

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written by netaddict1, June 12, 2008 19:51:16

haiyah... i tot LGE is an accountant by proffession, so easy to calculate oso dunno. simple only:
bodohwi, end of line payoff = 10%
najis, succession fee = 10%
sammy, unemployed compensation = 10%
KJ, upholding the title of 'riches unemployed' bugger = 10%
funding sabah promises = 10%
actual material inflation = 10%
total = 60%

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written by Lim Lim, June 12, 2008 19:56:09

Lim Guan Eng,u hav to understand that the umno/BN guys do not posess mathematical rhetoric capability!

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written by billykbk, June 12, 2008 20:08:47

Even my 10-year old nephew can question the enormous hike, what say you?

Comrade Lim, I thank your steel resolve to get to the bottom of things(stupid things rather) and to ensure we fulfill our election promises. Failing which, we'll be ill-compared with BN vultures.

However, I wonder will pay heed to your advice, grouses, complaints and counter-suggestions. This PM of ours is either in dreamland or he's too smart for the average M'sians; not to mention the greedy, dim-witted UMNO morons.

Play smart with this nincompoop for the sake of GOOD Penangites and M'sians in general. Thank you!!!!!

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written by future, June 12, 2008 20:37:46

MR CM please inform the Federal Sucker the state govt.and its rakyat are not intrested at the inflated price bridge.The rakyat had enough of this blatant disregard attitude from the Federal Sucker.

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written by ganbing, June 12, 2008 20:49:20

No doubt the bridge is paid by the federal govt. but inflated cost = higher toll and who suffers? Certainly not the Umno politicians and cronies who have already pocketed the difference between the inflated cost and real cost.

Corruption in Bolehland has reached astronomical levels. They are not stealing a few millions now, but hundreds of millions at one go. Maybe even a billion per mega project. The rich get richer, the poor gets poorer. Another 5 years of BN and we'll be at Indonesia level. Another 10 years and we'll reach African level. My only hope is that Anwar takes over soon.

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written by juanglagi, June 12, 2008 21:06:35

PG gov, jgn bikin lar corrupted jambatan.... nanti jamban pun tak mampu bikin.

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written by johanssm, June 12, 2008 21:20:47

The extra 60 per cent is to pay to bn former mps and former minister who lost in the 12th general election.
the 60 per cent will be distributed to them in order for umno to " maintain " them.

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written by chiongguo, June 12, 2008 21:20:58

Opportunistic price increase. When a kilogram of wheat flour (with a bit more gluten) was raised by 20 cents. The bread and roti-canai on the street was raised by 50 cents.

Diesel price went up by 63 percent. The price of cement went up by 50% eventhough transport only makes up 20% of the overall cost. The fair increase should have been 12.6%.

Such opportunistic price increase is very rampant. The government is impotent in this regard. How can the government prevent this from happening. This is one of the unpredictable knock-on effect of the fuel hike.

Consumer association can help to educate but it has no bite. Consumers in malaysia are helpless with regard to such blatant opportunistic price increase. In order for consumers to take back their rights for fair price cooperatives should be encouraged. Will the government help to develop this very important people sector ?

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written by Msian 2, June 12, 2008 21:45:27

Isn't it true that UMNO/BN has the most number of millionaires in its ranks of politicians ?? So easy to make money!!!! Wah 60% increase to bridge cost. Better start building right away, otherwise by next time around next yr it will be another 60% increase. More UMNO/Bn millionaires making millions more. Soon we don't need to hire foreign workers as we M'sians are getting robbed left right & center & we need the jobs & second jobs, 3rd jobs to maintain some vitality to keep our bare bones standing. Sad, sad days ahead if no Pakatan gomen.

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written by FOLI, June 12, 2008 21:49:59

Now I understand, 40% petrol hike actually is only 1.5%, 60% bridge cost increase actually is 2.3%, 30% roticanai price increase actually is 4%, 50% transport hike is actually 3.3%, wait hang on is it the other way around? Hey I think I qualify to be an UMNO accountant and adviser to the PM!!

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written by New Frontier, June 12, 2008 21:58:24

It shows effiency on our civil servants and their political masters when balloning massive construction projects. LGE, form up coalition of Malaysian subcontractors (Penangites) and asks for 10% (430mil) of the project to be allocated to them as promised by Noh Omar. For toll concession-ask to be given to PDC (or other state co.under CM corporation) as concessionaire, then Penangite will be benifited.

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written by cheekhiaw, June 12, 2008 22:08:51

Official inflation rate may be 2.3% but the rate of commissions for middlemen might have gone up a lot...

xxx

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written by chanatak, June 12, 2008 22:13:49

UMNO never learns. UMNO cannot learn. Just as a cat cannot resist eating fish, UMNO cannot resist every opportunity to skim, siphon and swindle the rakyat's money ......

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written by Commonsenses, June 12, 2008 22:23:30

This may be the last term for UMNO at federal level b4 PR takes over, so UMNO is making moneylah........and the people of penang will pay for a few generations. Better cancelled the bridge and call for a retender once PR takes over.

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written by james5501, June 12, 2008 23:00:54

How come the former CM of Penang did not claim credit for the increase in construction cost of the bridge?

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written by gtl, June 12, 2008 23:20:18

when will we learn?? country will be bankrupt before 2020.

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written by miwaki, June 12, 2008 23:25:30

Guan Eng,please take note that our BN government is very poor in mathematics.How can you expect them to explain the correlation between inflation rate and price increase of second bridge !

They do not know how to calculate but they are excellence in the take !

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written by Little Sparrow, June 12, 2008 23:39:05

Hey MCA, MIC and Gerakan in particular the former Penang Chief Minister, don't you dogs have anything to say about this serious matter which is the affecting the rakyat especially the Penangites? These obedient dogs of UMNO must have been gagged by Najis and Bodowi. Why don't OKT, Sami & KSK three of you go and jump off the Penang bridge together. Bloody despicable running dogs! Go to hell!

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written by KARMANNGHIA, June 12, 2008 23:41:47

why did Koo su Koon not claim credit for the hefty hike?

surely, this bridge project starts from his office.

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written by tryme, June 12, 2008 23:44:09

Another corruption....BPR please step into this case and investigate properly and explain to Rakyat!

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written by Rainforest, June 12, 2008 23:55:10

Welcome to the reality world of double digit inflation!! Wake up MALAYSIA!Don't be fool by Government rate of 2-3%, everything is going up by 30%- 50%, Penang Bridge by 60%, MAS will be annoucing a hefty hike in FUEL surcharge, maybe 80% more who knows, just wait and see. Why should Tenaga be allowed to increase it's tariff, Tenaga already making RM1B or more!!, is the hike in rates, to be paid to the IPP, INDEPENDENT POWER PRODUCER! More Cronies? why would Tenaga need IPP to supply power,can't Tenaga build their own power plant. With the combination of FUEL and Electricity going up in price, every MALAYSIAN will be hard hit!!! Bad times will breed more criminals, crime will increase. We will all have to be vigilant.

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written by macakmy, June 12, 2008 23:59:37

Simple explanation:

Increase price by 60%, then 60% goes into pocket, then justify higher toll rates due to "high" costs. Then, laugh all the way to the bank.....

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written by Wisdom above, June 13, 2008 00:44:27

Just build a 12 lanes " Toll Free" causeway.

Let the Federal Govt build their own white elephant bridge.

Syabas.

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written by Bigdawg, June 13, 2008 00:46:01

A while back, someone recommended to purchase the British hovercraft ferries now snowballed in England.
That seemed to be a good idea, maybe even cheaper, let alone allowing a saving of land involved, plus enhancing the adventure of landing on Penang by ferry for tourists.

Then, considering also Penang is just on the fringe of the earthquake zone, this form of a sea link is'nt too bad an idea....

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written by wood, June 13, 2008 01:18:01

FED GOVT THINKS THE RAKYAT IS STUPID !
ONLY UEM KNOWS HOW TO BUILD THE BRIDGELAH!
MALAYSIA BOLEH SO RAKYAT MUST TOLERATE AND GIVE MALAYSIA COMPANY UEM TO PROVE IT BOLEH BUILD THE BRIDGE !

MALAYSIA NOT ONLY BOLEH BUT KAYA TOO !

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written by Hakim Joe, June 13, 2008 01:19:32

Makes u wonder just what the REAL inflation rate is for Malaysia, eh? Hello, can anybody out there tell me what items/products' prices only went up between 2 to 3%?

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written by Bigdawg, June 13, 2008 01:36:21

Air Hujan...Kadang2 ada...kadang2 takda.

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written by KIAT BLUES, June 13, 2008 02:02:12

if not increase by that much how to retire with a fat account for the children and grand chirdren and the great grand chirdren to leave in palace

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written by doggone, June 13, 2008 03:57:53

Dear Lim Guan Eng,

Can you suggest to the Federal Government that they allow you to call for a separate tender on the project (nut for nut and bolt for bolt) for a cost comparison? I think you can find a cheaper contractor building a much safer bridge with the best expertize from Europe. How is that for transparency?

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written by ksmaniam, June 13, 2008 08:51:25

Good. If the price is now 4.5b. It is a good sign. why?
1. At this time of economic turmoil, WE DEFINITELY CANNOT AFFORD IT? Has the government forgotten the austerity drive? We rakyaat must be prudent but Government need not...AAB please lah...lead by example?
2. It was suggested by someone earlier in MT (if the gov reads MT they need not think anymore) that we can enlarge the present bridge. I suggest that we enlarge the bridge for a mass transport train. Why? It it is lighter and perhaps need to just use the present foundation. Get a good engineer to verify that. We can have feeder buses for the Train or let the train pass through the whole of penang(2nd phase or together). I think the best solution. Environmentally friendly too.
3. Hey good news that it is now 4.5b. NOW WE CAN SCRAPE IT.
4. On of the beauty of PENANG whether you like it or not is its ferry. Modernise it for tourist purposes. It can also be used by people of penang. Schedule it and manage it well and it should make some profit. Maybe a fast boat alongside the ferry for "fast travellers".
5. It is ridiculous to have a second bridge if Penang cannot absorb the input of vehicles.
This is my 3 cents worth of input for the 4.5b ringgit idea.

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written by AngelC, June 13, 2008 09:08:48

Are Open Tender Really OPEN????

http://malaysianangel.********.com/2008/06/are-open-tenders-really-open.html

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written by Sean E, June 13, 2008 09:33:34

In fact the design and route for the bridge needs to be study in depth and questioned.

It appears to be taking a long instead of a shorter route.

Also, why the need for the twin viewing platforms in the middle of the bridge.

All this add up to the totalcost of the bridge.

Of course UMNOPutra is not concerned about cost. It is the rakyat's money afterall. The higher the costs the better because their cut/take is a percentage of the total costs.

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written by joeawk, June 13, 2008 10:52:12

Mates, OSA, cannot tell. I mark up here and there and I am protected by OSA. I can also pay more to the Chinese contractor who will pay me indirectly else where, I shall get away. UMNO spend so much during the GE and where do you think we get our money from? 30% go to UMNO fund and the rest I share with my buddies, all UMNO leaders, they will continue to buta2 support me. If MCA not happy, I throw a few coinjs at thechief and he sees not what I do. hehe. Die not me, all of you, malaysians, what I care.

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written by mgeo, June 13, 2008 22:52:47

written by teohsh, June 12, 2008 | 18:13:13
From $2.7 Billion to $4.5 Bilion? I am SHOCKED!

Not so shocking compared to the rail double-tracking project that went up from 8 to 17 billion.

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