GEORGE TOWN, July 15 — The Penang government today said several design changes to the RM852 million Air Itam–Tun Dr Lim Chong Eu Expressway project did not affect its overall contract value.

State infrastructure, transport and digital committee chairman Zairil Khir Johari said the revisions were made following technical assessments of challenging site conditions.

He confirmed that two planned tunnels at Changkat Delima and Bukit Gambier, as well as an elevated U-turn near The Light Waterfront, were removed from the latest project design.

“The project's original design consisted of open-cut sections and viaducts but the design was revised to include tunnels, and this was approved on November 27, 2020,” he said in a statement today.

He said the design was revised again during construction following further assessments of geological conditions and structural stability.

The tunnel sections were subsequently reverted to the original open-cut concept, which was approved by the state government on July 3, 2024.

“All design revisions were endorsed following professional evaluations by the project's engineering consultants and relevant technical agencies, including the Public Works Department's (JKR) Project Monitoring Team,” he said.

On the proposed elevated U-turn near The Light Waterfront, Zairil said the original design was rejected by the Malaysian Highway Authority (LLM) and PLUS Malaysia Berhad because of insufficient weaving length.

“A new U-turn design was subsequently proposed near the Penang Bridge interchange, which met all technical requirements and was approved following discussions with LLM and PLUS,” he said.

He said design revisions were common in design-and-build projects to ensure major infrastructure developments complied with technical and safety requirements.

“The redesign did not result in any increase or reduction in the contract value, as provided for under the contract,” he said.

Zairil said any additional costs arising from the revisions, including higher construction material prices in recent years, would be fully borne by the contractor.

"The Penang government remains committed to ensuring the Air Itam–Tun Dr Lim Chong Eu Expressway project is implemented in accordance with the required technical, safety and governance standards," he said.

The RM851.97 million project, known as Package 2, is being implemented under a design-and-build contract and financed through a land swap arrangement, with the contractor compensated through reclaimed land based on the value of completed works.

Zairil said the project was 91.8 per cent complete as of June 15, with an adjusted contract value of RM851,970,105.

As of February 3, certified payments totalled RM668,411,100, equivalent to 78.54 per cent of the original contract value.

“The Penang state government has approved the transfer of 11.6183 acres of reclaimed land under the land swap arrangement, with a total value of RM427,656,979.86,” he said.

He said the outstanding payment to the contractor amounted to RM240,754,120.14, equivalent to 6.54 acres of reclaimed land.