Chinese firm ready to start work on Penang Bridge.

GEORGE TOWN: Despite talk about the second bridge project running aground, with UEM Builders Berhad yet to ink the deal, China Harbour Engineering Company (CHEC) is taking possession of the site this Saturday to proceed with its part of the deal.
Jambatan Kedua Sdn Bhd (JKSB) managing director Tan Sri Zaini Omar said the project will begin on schedule and is on track to be completed by end of 2011, as projected.
Zaini told The Edge Financial Daily the project will continue regardless of which company was awarded the superstructure portion. That portion is currently offered to UEM at RM1.3 billion, while CHEC’s portion is worth RM2.2 billion.
He said there was “still time” before there was any cause to worry.
“We are giving UEM all the time they require to restudy and renegotiate with us, as long as in five months, work on the superstructure commences.
“CHEC has been given the letter of award so the construction of the substructure and mainspan will proceed and they will officially take over the site from this Saturday.
CHEC has begun dredging and soil testing work.
“The works will be carried out in four segments, so that in five months time, the superstructure portion can commence.
“If we were to wait for the entire substructure and mainspan to be completed before commencing the superstructure works, the bridge will not be completed on time,” he said.
UEM has also been asked to hand over the design of the land portion of the project, estimated to be worth RM800 million.
The land portion is to be offered via restricted tender.
“UEM has carried out the design for the land portion of the project, so we have asked for these to be passed on, so we do not have to waste time and money for another design,” Zaini said, adding that work on the land portion would also start in the next six or seven months.
JKSB is the special vehicle unit set up by the government to handle the Penang Second Crossing project after it was launched a two of years ago.
It has also been appointed as the concessionaire for the Penang Second Crossing, with the Letter of Intent (LOI) given to UEM being withdrawn by the government recently, drawing the ire of UEM.
UEM is also said to be demanding RM1.5 billion instead of the RM1.3 million it has been offered.
While UEM has stated that the cost of the bridge could go up to RM5 billion, the government has capped the project at RM4.3 billion but with a variation of price (VOP) option in the event of higher costs of materials.
By The Edge.