THE federal government did “not really” reject Penang’s application for a RM1 billion bridging fund for the Pan Island Link 1 (PIL1) highway.

PIL1 is a component in the Penang Transport Master Plan (PTMP).

Chief Minister Chow Kon Yeow said everything remained “pending approval” by the federal government.

“Not really,” he said in a press conference when asked to comment on an article by The Star on Sunday that the PIL1 project had hit a snag due to the state’s failure to get the bridging loan.

Chow was quoted as saying that the loan was not forthcoming.

“I cannot control what the reporter writes. The matter with the loan is not relevant at this point.

“Everything is ongoing. Open. As open as the blue sky. If we don’t get the approvals for the projects, what is there to talk about the loan?

“The report doesn’t reflect the actual situation,” he said.

Last year, Chow reportedly said Penang had requested a RM1 billion soft loan from Putrajaya to enable the state to kick off the first phase of the PTMP.

The loan would allow PIL1 and the light rail transit project to start concurrently.

He told reporters today that everything would depend on next month’s meeting at the National Physical Planning Council (NPPC) chaired by Prime Minister Dr Mahathir Mohamad.

Penang is presenting its Penang Structure Plan (PSP) 2030, which incorporates the PTMP and the Penang South Reclamation (PSR) projects, at the meeting.

The NPPC’s approval for PSR – three man-made islands off the southern coast of Penang Island – is crucial, as it is the funding model for the multibillion ringgit PTMP, which PIL1 comes under.

“PSR has been included in PSP 2030. If it is not approved, then no go. That is why we have said so many times that the NPPC decision is so important.

“Now we have been given a date to table our report at the meeting for a decision. This is considered the last crucial hurdle,” Chow said.

Chow also said today there was no “delay” in the PIL1 project since the federal authorities had not given their approval to allow further work to begin.

“For us, the question of delays doesn’t arise until the NPPC meeting next month. Until approval is given, we cannot do anything.

“We need approval to proceed to the next stage, which is technical designs and financial arrangement. We are still waiting for it.

“People will laugh at us if we go into the next stage now. The bank will ask to see your approval, but you don’t have it.”

Chow said the project delivery partner SRS Consortium was responsible for the bridging’s finance.

How much the highway would cost, he said, would depend on the contract amount and the technical details.

“In the meantime, we will try to assist the PDP on our part. If we can get a loan, then their bridging finance would not be so huge.

“But for now, it is still premature to talk about this. We also have to wait for the PIL1 environmental impact assessment and PSR approvals. The fund comes from PSR.” – March 19, 2019.