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2nd Bridge could be more cost effective-options

2 July 2008 - 9:39pm

It is sad to see how the cost of building 2nd Penang Bridge has kept rising up, up and again-with the people looking on helplessly.  These are very simple ways to cut costs significantly:

1.if the span over the sea is costly (3.32bil) why not build the bridge (if it must be built) closer to the current bridge -and then let the `bridge' continue as a coastal highway to where the current planned exit is, to let it serves its real estate development functions there? That easily cut the bridge span and related cost by 50%! 

2. Where is the cost saving from cutting off the 2 `o's from the mid-span of the original bridge design (ie the 2 restaurant cum look-out points)? Those circular, double storey construction complete with concrete Pinang trees and concrete `pearls' look expensive. But it seems that cutting them off didn't save anything at all! Care to explain? The cost saving may (guestimate only) come to RM200mil ie about 5% of the total construction costs!

3. Design and concept cost run into RM285mil -that is  6.63% of project cost of RM4.3bil. This is very high compared to other construction cost where design and concept cost constitute 1-2% of the entire costs of any construction. Look like some fats can be trimmed here! 1% of the construction cost come to Rm43mil. This can save another 5% of construction!

4. Yet if cost saving is made a primary objective there are many areas to cut the fats from the overinflated costs especially the `management' costs, the `sub contracting margins' and all other corruption costs. That may constitute a big slice of the official construction costs. 

From the above easily the costs cutting can potentially bring the cost down to 30% -without compromising the Bridge's integrity at all. Such cost cutting can be achieved if there is open tender -ie if the Govt don't insist to use the project to fatten a few cronies!

Cost rising further for second Penang Bridge

PENANG, July 2 — Construction giant UEM Berhad (UEM) went on a charm offensive today to convince mainstream media editors that some progress has been made on the construction of the Second Penang Bridge.

Datuk Ahmad Pardas Senin and other senior officials also attempted to make a case for the higher cost of the crossing. Government officials have told The Malaysian Insider that the cost of the bridge will be capped at RM4.3 billion but UEM officials today said that the cost is inching closer to RM4.58 billion and could rise even further, citing the spike in raw materials.

It is understood that the UEM estimate includes the controversial development fee of RM285 million which the government is not keen to pay to the government-linked company, especially as the Economic Planning Unit of the Prime Minister's Department has decided against awarding the concession to manage the bridge and collect the toll to UEM.

Instead, the government will have an open tender before appointing a company to operate and maintain the bridge and collect toll on its behalf.

Government officials opted for this model because the Ministry of Finance is funding the bridge through soft loans and there is the belief that the toll should go towards servicing the loan. Also, not giving the concession to UEM will save the government some RM18 billion over four decades.

In the past, the government has had to make up the shortfall to concession holders when the latter were not allowed to raise toll rates as spelt out in the contract.

 

UEM told the media editors in a briefing in Penang that the land portion of the crossing will cost RM997 million while the sea portion is RM3.32 billion. They added RM285 million for design, concept and preliminary work.

This cost estimate is likely to face some opposition from Finance Ministry officials and the task force headed by Tan Sri Zaini Omar. Industry sources say that the six-kilometre land portion can be built for RM700 mil, even taking into account a healthy profit margin, instead of RM997 million.

Also, though UEM is claiming RM285 million for design and concept, industry sources say that the design and concept of the crossing was developed by China Harbour Engineering Company (CHEC), UEM's partner. China provided a US$800 million loan to finance the bridge construction.

Comments

3 July 2008 - 2:22am — zozdaniel

Brilliant idea to have the

Brilliant idea to have the bridge close to the current bridge. Afterall, this is the ideal linkage points for the masses of vehicular traffic.

Unfortunately, the Political leaders see it differently. They cares more for their political well being and aspiration, without caring the HELL for ordinary Malaysians.

Another possiblity for delivering the bridge to Penang would be CREATING A PENANG TRUST COMPANY, where the ordinary Penangites can subscribe or purchase shares in this company. Believe many in Penang can see the eventual benefits and potential from this Penang Trust Company.

We can then KICK THE ASS out of UEM. Who is UEM anyway??? If they are Government Link Company, then they ought to play the DUTIFUL role of saerving the public, rather than to Suck every drop of blood out of the people !!!

By awarding the contract to UEM, aren't there protective clause to bind and reign in such a company??? The 25% rise in price of construction materials only contribute 8% of the overall cost of the project. So how can the overall cost of the bridge ballooning by 80% from its original cost??? PLUCK FROM THE AIR !!!

We have enough shit from these companys undertaking privatised projects. They should be thankful for being the GOD APPOINTED company to undertake a PIRATISED projects. But remember, they cannot have the POWER OF GOD, to raise the price as they wish.

Allow the public to view the privatised agreement pleased !

WE want to know whether the Government or Minister who award the contract have taken the interest of the ordinary rakyat into consideration.

3 July 2008 - 3:04pm — ong

The problem is not really

The problem is not really cost: it is the `federal jurisdiction' whatever that means. It is the Federal's `nod' which is the real bottleneck here. This part must be revised if there is a new government at Federal level to allow more flexibility for state development.

As you suggest Penangites can subscribe to a Penang Bridge Trust fund to raise fund to build the Bridge and enjoy earlier end to the repaying commitment. The media and politicians from both sides are misleading the public that  there are mega `Federal allocations' involved-one side try to show their `power' and the other side cry `punishment'. The people should learn to read between the lines.

22 May 2009 - 2:06pm — oooo

Corruption?????Penang 2nd

Corruption?????Penang 2nd Bridge

the newspaper keep on emphasised on the bridging softloan of USD8mil with the long repayment period of 20 years over the interest rate of 3%. but who have actually think about and carry out study on the actual construction cost of the bridge. what CHEC aimed on is the profit return of 45% from the construction. abdulah badawi quickly signed the contract to chec before he has visitted china on last year October 08 and dropped his position as PM.

TUN Mahathir must carry out searches. a lot of standard terms conditions in JKR contract have been deleted to favour CHEC needs. JKR contract is considered fair to all party but all beneficial cluases have been deleted by the idiot tan sri zaini as the executive chairmen for Jambatan kedua sdn bhd in order to please chec. everyone please imaging how much benefits he and his colony has gained

1. 30% bumuputera participation ; deleted .
the 2nd bridge construction should irritate the local market and benefit penangist but the substructure and main span are entirely carry out by china people. dont tell me malaysia have no expert. sad

2. use of local materials ; deleted.
china has imported lot of raw materials for the construction of the second bridge. no local people are benefited from the project. transport agent are all using china transport agent.

3. tehre is a VOP clause added in the contract
however, base rate for variation of price for teh major materials i.e fuel RM1.56, steel RM3k/tan and cement price RM10.60/50kg bag. all were fixed at very low rate. the based rate do not reflect the actual market rate at the time of tender. the bridge will definitely ended up even expensive then what published in paper i.e. 4.3bil please refer to statistic department analysis release 1 and release 2

4. anyone know how much of gifts, cash voucher, sweet have been given to idiot zaini and Dr lim as medium man to pak lah and the most teruk one is (pak lah’s colony).

5. chec never engage any profesional QS to liaison with the government as require in the goverment requirement. zaini’s words overwrite everything.

6. the 1st bridge widening has obviously improved the traffic. why should the 2nd bridge be so urgent to benefit the opposition parties. cant other benefitial project be launched to benefit people under the economic crisis

7. the very sad thing is no one actually carried out cost study for the 2nd bridge before contract being awarded to chec. CHEC is the direct awarded party without any cost economic study. Malaysia has ISM for what? cant zaini consult ISM before award of contract?

8. the contract visibly cited that if there is corruption found the project can be terminated immediatedly.

9. Dr. Lim (pak lah’s colony) enjoyed the most. his relative was placed in chec HQ and checker and medium men and getting fantastic salary package without works.

10. chec is solely a management company and the whole project is subcontracted to five sections. HRA Teguh Sdb Bhd (a local company) has successfully get the job because of pak lah. the less are all sub contrcated to china company. HRA further become agent in providing RC spunpiles to chec. this is really a joke. why should chec give HRA 25% commision by not direct procure from ICP marketing on the spun piles required.

11. try to imaging how good the profit return is even after entirely subcontracted to china mainland contractor and HRA. i.e profit 40 – 45% from 2.2bil can at least recover the local market.

12. dont tell that local contractor are all stupid to the extend that only china can built the bridge. gamuda, muhibah, mmc,ijm, zelan, psc etc. are all capable enough to build the bridge.

13. the china company treat local staff like stupid shit. they just simply retrench and giving unequal benefits to the staff. all china staff got double pay for the month of december and a lot of allownace but local people get 0.

14. the most critical thing TUN mahathir must know is the advance payment to chec. the conditions of contract clearly cited that 15% of the contract sum deduct provisional sum time by the contract sum or 10mil whichever is the lowest. but idiot zaini has abuse his authority in approving the 15% advance payment imemdiately (a lot of letter since beging never been reply) and without deduct the piling works as provisional sum. this has cause additional few thousand million of advance payment to chec.

15. all terms and conditions mentioned in the government have been deleted to favour chec. i wonder why zaini was empower to abuse the authority

i have actually having too much of thing to share but dont know how publish my article .

TUN MAHATHIR'S ACTION IS DEEPLY EXPECTED.