GEORGE TOWN: The state government has been asked to explain why the undersea tunnel project was being replaced with plans for a third bridge.

Penang Federal Action Council chairman Datuk Seri Zainal Abidin Osman questioned what was the compensation that the state government would have to fork out to companies involved in the feasibility study which was said to be 83% completed.

“The state should explain whether there is a need to pay damages or compensation to Consortium Zenith-BUCG (CZBUCG) or other companies should the project be called off?

“The state should also explain the status of the agreement for the payment-in-kind of the 44.5ha of land to CZBUCG should the underwater sea tunnel project and three major roads be called off?

“Are they going to use the reclaimed land at Seri Tanjung Pinang Phase 2 and Gurney Drive as compensation for the third bridge project?

“Would CZBUCG be given the contract for the third bridge as compensation for calling off the underwater sea tunnel project if it receives approval from the Federal Government?” he asked yesterday.

Zainal said it was inappropriate and undemocratic of the state government and CZBUCG to take legal action against those who question the projects.

The consortium recently said it would sue Parti Cinta Malaysia vice-president Huan Cheng Guan for making remarks that it claimed had defamed the company.