SCRAPPING the Pan Island Link highway project in Penang could save the government some RM9 billion, more than enough to settle Felda’s RM8 billion debt, said Najib Razak.

Taking to his Facebook page today, the former prime minister said Putrajaya will then have an additional RM1 billion in hand that can be returned to the public in the form of BR1M and aid to the farming community.

He said the 19.5km highway project, conceived when Lim Guan Eng was chief minister of Penang, was initially announced to cost RM7.5 billion.

The cost, however, ballooned to RM9 billion with the cost of construction material for each kilometre of the highway costing about RM461 million – making it the most expensive highway in history.

“To fund this project, the Penang government has sold thousands of hectares of reclaimed land. Reclaimed land is a government asset as suitable land for reclamation is limited.

“With most locations reclaimed, the government will be left with no assets to sell in the future,” he said.

The project is part of the Penang Transport Master Plan and is funded via proceeds raised through the sale of reclaimed land.

Najib said Penangites had shown their disapproval of the project, perceiving it as unnecessary, not environmentally friendly, and exorbitantly expensive.

“I think their disapproval will fall onto deaf ears. The Penang state government will not stop the project.

“The highway project is built to link the developer’s  tunnel project and the Penang International Airport. If you call this cronyism, people will get angry.”

Najib drew a reference to the Wellness City of Dreams project at Bandar Tanjong Pinang, developed by Ewein Zenith Sdn Bhd and Consortium Zenith BUCG Sdn Bhd for a gross domestic value of RM15 billion.

“A RM15 billion private development is not a joke.”

He said the PIL highway was being built to link the controversial undersea tunnel project and the Penang International Airport.

The contractor for the much criticised undersea tunnel project is Consortium Zenith Construction Sdn Bhd.

Najib noted that the feasibility report for the RM305 million cost is yet to be ready.

According to a report by The Edge, the Wellness City of Dreams project is part of a land swap deal given to CZBUCG by the Penang state government for constructing the Penang undersea tunnel and three major road bypasses worth RM6.3 billion.

Najib said it had been six years since the project was awarded, but it was yet to be completed. – February 8, 2019.