BUCG has pulled out from tunnel-road project in Penang

 |Sep 6, 2016

Lim Guan Eng

Beijing Urban Construction Group (BUCG) has pulled out from Consortium Zenith BUCG Sdn Bhd, the contractor in charge of Penang’s undersea tunnel and three paired roads projects.

Penang Chief Minister Lim Guan Eng said that the consortium has applied on Sep 3 for the state’s approval of BUCG’s withdrawal as a shareholder and a change in name for the consortium.

Lim said BUCG was not the main contractor for the project so the withdrawal will not affect the mega project.

“China Railway Construction is the main contractor for the project and will remain as the joint venture partner for the project. So the project is not affected in any way,” Lim told the media in George Town today.

Previously Penang government had told BUCG to take responsibility for the accident in Kuala Lumpur last month where part of a crane operated by the firm had fallen and crushed a woman to death, or withdraw from the Penang project.

“We don’t want an irresponsible contractor to come to Penang, especially not to build the undersea tunnel, don’t play a fool,” said Lim.

On the early agreement signed with the consortium and China Railway, Lim said it was valid even if the consortium changed its name to remove BUCG.

In the letter signed by Consortium Zenith BUCG chairman Zarul Ahmad Mohd Zulkifli, Zenith will take the steps to change the consortium’s name to omit mention of BUCG upon approval from the state government.

It also asked for approval for BUCG’s withdrawal as a shareholder of the consortium, which Lim said has been given.

On Aug 25, Joice Chin Khoon Sing was killed by a crane hook that fell on her car at Jalan Raja Chulan in Kuala Lumpur.

Authorities said the crane operator has since fled the country for Indonesia.

Lim pointed out that the development project involving the crane was headed by BUCG.

It was reported the company had used an illegal crane operator, and Lim said his state government did not want a company that used illegal operators for the undersea tunnel project.

He criticised the firm for failing to contact the victim’s family.

Bernama reported that no compensation was involved in BUCG’s withdrawal, quoting Lim.

The undersea tunnel will be a 7.2km link between Gurney Drive to Bagan Ajam in north Seberang Perai.

The three paired roads are from Tanjung Bungah to Teluk Bahang, Tun Dr Lim Chong Eu Expressway to Air Itam and Gurney Drive to the same expressway.