KUALA LUMPUR, June 3 — The Penang government must disclose how it has managed to sustain a 500 per cent increment in annual operational costs and still register surpluses, Barisan Nasional (BN) said today.

In a statement, the BN strategic communications team said that Penang chief minister Lim Guan Eng did not shed light on this particular query, when it was posted previously in an earlier statement.

“Is it from Federal Government funding, from taxing Penang people five times more via increases in assessment rates, fines or increasing water rates four times? Or is it from increasing sales of state land and assets?” the statement read.

“If the additional revenue is indeed from sale of state land and assets, why can’t the Penang Government sell one more piece of land valued at RM1 billion or above to avoid borrowing from EXIM bank of China and incurring interest costs?” the team asked.

Concerns were raised, after the DAP-led state government announced plans to take a loan from China’s Exim Bank, for a massive transport project last month, via the passing of the Penang Loan (Banks and Other Financial Sources) Bill 2017 at the state legislative assembly.

Lim said the amount of money borrowed under the bill was to finance the investment and implementation of the physical, economic and social development of the state as well as other related matters, including the Penang Transport Master Plan 2013-2030 (PTMP).

He added that project delivery partner (PDP) SRS Consortium may have to take the balance of RM26 billion loan from other banks.

The proposed SRS is off Permatang Damar Laut and was meant to fund the PTMP.

The SRS includes the creation of two man-made islands off the coast, of about 2,000 acres and 1,300 acres respectively, and later another island covering 800 acres.

“We would also appreciate a confirmation from YAB Lim if YB Chow is correct when he told The Edge on 22nd July 2016 that the cost of the Penang Transport Masterplan project has already increased from RM27 billion to RM46 billion — a jump of RM19 billion,” the team said, referring to State Local Government, Traffic Management and Flood Mitigation committee chairman, Chow Kon Yeow.

If it is accurate then how would the Penang State Government fund this RM19 billion increase? Will this be from loans from Exim bank or from other banks?,” the team questioned.

The Edge, had reported last year, that the Gamuda Bhd-led SRS Consortium confirmed that the initial cost of RM27 billion for the PTMP had ballooned to an approximate RM46 billion, after additional components to the master plan were added by the Seberang Perai Municipal Council (MPSP).

It also quoted Chow confirming the increased cost, RM16 billion reclamation cost and RM30 billion PTMP cost.