GEORGE TOWN, Oct 7 — After months of controversy over the George Town-Butterworth undersea tunnel infrastructure project, the Penang state government has finally inked a RM6.3 billion agreement with Consortium Zenith BUCG.

Chief Minister Lim Guan Eng and the consortium’s chairman Datuk Zarul Ahmad Zulkifli signed the preliminary contract at Traders Hotel yesterday.

Lim said Consortium Zenith will now undertake the feasibility studies and detailed design works (FSDD) as well as the environmental impact assessment (EIA) — a critical component to ensure the project meets requirements.

“The FSDD will take approximately one-and-a-half years and upon approval, work on the three road bypasses will commence followed by the undersea tunnel.

“The Penang government will not proceed if any of the projects fail to comply with the FSDD,” he said yesterday, adding that the state would appoint independent EIA consultants.

The formal agreement for Penang’s Transport Master Plan (TMP) was initially signed in 2011 with the objective of solving transport woes plaguing Penangites.

Lim, meanwhile, has insisted the project will not only help ease traffic congestion but also boost the state’s economy.

However, several non-governmental organisations (NGOs) as well as members of the public have been protesting against the project, citing possible environmental issues.

In April, about 400 people gathered at the Gurney Plaza shopping complex to protest against the project.

An activist from the Penang Citizens Awareness Chant Group (Chant), Khoo Kay Peng, was quoted as saying many were still in the dark on details of the undersea tunnel project.

There were also concerns on the project’s safety and maintenance and whether or not the Penang government would be able to sustain its cost.

In March, a group of fishermen from Tanjung Tokong also protested against the project which they claim affected their livelihood as they foresaw polution driving away the fish.

The project also caused a stir regarding its costing.

Penang Barisan Nasional had earlier this year urged Lim to explain why the cost kept changing.

Yang diPertua Negeri Tun Abdul Rahman Abbas had in July called on Penangites to support the project, while at the same time insisted for a detailed EIA on the project.

In his speech when officiating at the first sitting of Penang’s 13th Legislative Assembly term, Abdul Rahman stressed the project must be implemented safely and correctly.

However, despite its controversy, the state government insists on going ahead with the project.

The mega project consists of the 6.5km Gurney Drive-Bagan Ajam undersea tunnel — the first in Southeast Asia, which is expected to be completed in 2025.

The three road bypasses are the 4.2km Gurney Drive-Lebuhraya Tun Dr Lim Chong Eu bypass to be completed in 2022, the 4.6km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam bypass, scheduled for completion in 2019, and a 12km Tanjung Bungah-Teluk Bahang four-lane road to completed in 2018.

Consortium Zenith BUCG, a joint venture between Zenith Construction Sdn Bhd and China Railway Construction Co Ltd, together with Beijing Urban Construction Group, Sri Tinggi Sdn Bhd and Juteras Sdn Bhd, was awarded the mega project by the state government in February.

The project involves a land swap with some 44.5ha of land at Tanjung Seri Pinang to the company coupled with a 30-year concession on the tunnel.

Last month, Zenith PMC Sdn Bhd had signed a joint-venture agreement with Astral Supreme Construction Sdn Bhd to conduct the FSDD.