GEORGE TOWN, May 6 — The Penang undersea tunnel is now being reviewed to make way for the Penang Port expansion plans, said Chief Minister Chow Kon Yeow.

He said the Penang Port Commission (PPC) plans to expand the port under its development master plan.

“This is why we have to review the undersea tunnel to make way for the port expansion,” he said in his speech during a luncheon dialogue session with Malaysia International Chamber of Commerce and Industry (MICCI) here today.

He said Penang took the top spot by recording RM41.152 billion in exports in March this year, making up a staggering 32 per cent share of the nation’s exports.

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He said this is why Penang port needs to be expanded and this has affected the proposed undersea tunnel project.

Later, when asked to clarify if the tunnel project would be cancelled or its alignment changed, he said there is no decision on the details yet.

“The steering committee is yet to submit their recommendations on it,” he said.

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The steering committee, headed by state exco Zairil Khir Johari, has been tasked to scrutinise PPC’s 30-year Development Master Plan before making recommendations.

The undersea tunnel, linking Gurney Drive on the island to Bagan Ajam in Seberang Perai, has been on hold pending the finalisation of its feasibility study.

The feasibility study could not be finalised as it was pending the completion and approval of the PPC development master plan.

PPC recently approved its development master plan which involved the expansion of port facilities that may affect a portion of the undersea tunnel.

The proposed expansion of the North Butterworth Container Terminal (NBCT) under the master plan reportedly could intrude into the existing proposed location for the undersea tunnel.

The undersea tunnel is part of a RM6.3 billion package project including three major highways under the state’s Penang Transport Master Plan.

It was proposed as a third link between the island and the mainland to reduce congestion on the first Penang bridge.

Meanwhile, Chow welcomed Prime Minister Datuk Seri Anwar Ibrahim’s announcement yesterday that Perak has given the green light to supply water to Penang through the Kerian Integrated Green Industrial Park.

He said the federal government has eased any resistance on Perak’s side on the water supply discussions that have dragged on for more than 12 years.

“The federal government established the Kerian Integrated Green Industrial Park to convince Perak to set up a water treatment plant for the park and the surplus of water will be channelled to Penang,” he said.

He stressed that the surplus water will be clean treated water and Penang may be getting a few hundred million litres per day (MLD).

“Of course the details are yet to be decided, we still need to discuss and finalise this,” he said.

Penang had initially proposed the Sungai Perak Raw Water Transfer Scheme (SPRWTS) back in 2011 but discussions had stalled many times over the years.

Last year, discussions between both states resumed after Penang agreed to buy treated water supply from Perak, a deviation from its original proposal to channel raw water from Sungai Perak.