Earlier report on Penang 2nd Bridge (2008-08-18)

KUALA LUMPUR, Aug 18 2008 (Bernama) - Construction works on the Second Penang Bridge are still going on, says the UEM Group, adding that two years of work worth RM200 million has already been done."The construction work continues. So far, at UEM Group Bhd, there has been no specific... formal instruction to do otherwise," said UEM Group managing director, Datuk Ahmad Pardas Senin to reporters after UEM World Bhd's extraordinary general meeting here Monday."UEM Builders still have a contract with us," he added when was asked on the progress of the project.

Some confusion had set in when UEM Builders Bhd received a letter from Jambatan Kedua Sdn Bhd (JKPP), the company that owns the Second Penang Bridge, on July 30, informing that it had taken over the duties of the Special Task Force and offered certain works on the project to UEM Builders.The government, however, had awarded the project to UEM Group last year on a concession basis whereby UEM Group subsequently awarded the construction of the job to a joint venture of Chinese Harbour Construction Company (CHEC) and UEM Builders with the former holding 51 percent.

"UEM Group did not receive the letter. That letter was sent to UEM Builders and UEM Builders have already replied in a query to Bursa Malaysia," he said.UEM Builders, meanwhile, in filing to Bursa Malaysia on Aug 6 said the scope of work awarded to it by Jambatan Kedua Sdn Bhd was over-lapping with the scope of work being negotiated by its parent company, UEM Group, with the government.UEM Builders said UEM Group was in negotiations with the government pursuant to an earlier decision made by the government to award the project to UEM group on a concession (build-operate-transfer) basis.

Asked if UEM Group would ask for compensation if the government totally revoked the project, Ahmad Pardas said, "I don't want to speculate.""At the end of the day it is a government project. We will always respect. The government has full right to which way they want the project to be." He added that the group was grateful to have been chosen as a party to undertake the project.The project is expected to be completed in 2011."We have done two years work. If we waited until everything is in place, nothing could have been done. We would not have been able to fulfill our undertaking by 2011," Ahmad Pardas said.He also added that if the company is able to progress with all things in place, it would be able to keep the momentum.

Elsewhere, Ahmad Pardas said the discussion on adjustment of toll rates nationwide was ongoing."We will always work and support whatever the government wants to do," he said, adding that nevertheless there would be issues to be addressed if there are to be any changes.-- BERNAMA