Thursday 4 September 2014

Failed tunnel joint-venture draws criticism

GEORGE TOWN: The failed joint-venture between Zenith PMC Sdn Bhd, a unit of Zenith Construction Sdn Bhd and Astral Supreme Construction Sdn Bhd concerning the Penang undersea tunnel may still see the latter involved in the later part of the project.



Penang Citizens Awareness Chant Group (Chant) wants to know why Consortium Zenith BUCG Sdn Bhd, the tunnel project developer engaged Astral Supreme when the company had no experience in the construction industry.

Chant steering committee member B.Nawawi said Astral Supreme was principally engaged in the business of manufacturing, assembly and export of electronic products and components.

He said there were also other issues affecting the company such as failure to submit its annual audited accounts for 2013 within the stipulated timeline.

He also said Astral Supreme had also received qualification in the auditors’ report on its financial statements for 2013.

“So why get Astral Supreme involved in the feasibility study in the first place when the company was troubled and clearly had no experience in engineering or construction works, let alone an undersea tunnel?

“Why did Zenith go through Astral Supreme instead of engaging more experienced engineering consultants directly to do the feasibility study?” enquired Nawawi in a statement to FMT.

Last month, Consortium Zenith BUCG chairman Zarul Ahmad Zulkifli while confirming the termination of the joint-venture clarified that Astral Supreme could not fulfil its obligations as stated in the agreement.

Astral Supreme, via its unit Astral Supreme Construction Sdn Bhd, had on Aug 15 2013 signed a joint-venture agreement with Zenith PMC Sdn Bhd to manage, perform and carry out feasibility studies and detailed designs for certain roadworks and the undersea tunnel between Penang island and Seberang Prai.

The mega project includes a 6.5km tunnel linking Gurney Drive on the island and Bagan Ajam on the mainland; a 4.2km bypass road linking Lim Chong Eu Expressway and Gurney Drive; a 4.6km bypass linking Air Itam and Lim Chong Eu Expressway; and a 12km Tanjung Bungah-Teluk Bahang road.
Consortium Zenith BUCG was awarded the project by the Pakatan Rakyat state government.

The consortium’s main shareholders were Zenith Construction and China Railway Construction Corporation Ltd with joint 70% equity share; Beijing Urban Construction Group with 10% equity share; Sri Tinggi Sdn Bhd with 10% equity share; and Juteras Sdn Bhd with 10% equity share.
China Railway will undertake 70% of the construction works while Consortium Zenith BUCG will construct 30% of the entire project.


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