GEORGE TOWN, April 17 — "The proposed RM6.3 billion Penang undersea tunnel project does not have any termination compensation clause, according to state Barisan Nasional chairman Teng Chang Yeow.

"According to Consortium Zenith BUCG Sdn Bhd chairman Datuk Zarul Ahmad Mohd Zulkifli's statement in 2016, the company could still make claims for work done although there was no clause (for compensation) in the contract with the state if the undersea tunnel project was cancelled,” he told a press conference here today.

Teng slammed Chief Minister Lim Guan Eng, saying, the latter had not understood the terms of the mega project contract that he signed on behalf of the government in 2013.

Following BN’s pledge in its 14th general election manifesto to cancel the undersea tunnel project if it gained the mandate in Penang, Lim was reported to have said on Sunday that BN must pay compensation.

"The project has not even started and the developer has not done any construction work, so why should BN pay compensation if it wants to cancel it?” questioned Teng.

He said BN had studied various aspects before making the announcement that it would cancel the undersea tunnel and three highway projects planned by the DAP leadership.

According to him, the three highway projects would not ease traffic congestion in the state as they would connect only a few areas to Tun Dr Lim Chong Eu Expressway.

Earlier, Teng who is also state Gerakan chairman, asked what happened to the ‘Paradigm’ state development plan that was launched in 2013.

"Till now, Lim has not produced any master plan for the state… he is only using the 2020 Penang Structure Plan produced by BN,” Teng said. — Bernama