GEORGE TOWN: Consortium Zenith BUCG Sdn Bhd (CZBUCG), tasked with building a RM6.3 billion mega project in Penang, is looking for a new partner to join the Malaysia-China joint venture (JV) company following the abrupt removal of Chinese state-run firm Beijing Urban Construction Group Co Ltd (BUCG).
Penang Chief Minister Lim Guan Eng yesterday announced that BUCG has been removed as a partner in the consortium after the firm was found responsible for the recent fatal accident in Jalan Raja Chulan, Kuala Lumpur. In the Aug 25 incident, a woman was killed when a crane hook at a construction site fell on her car.
Guan Eng revealed a letter, signed by CZBUCG chairman Datuk Zarul Ahmad Mohd Zulkifli dated Sept 1, seeking the Penang State Economic Planning Unit’s permission for BUCG’s withdrawal as a shareholder and a change in name of the consortium in a bid to safeguard both the consortium and the state’s credibility.
He said the Penang state government had consented to the removal of BUCG’s local unit BUCG (M) Sdn Bhd from CZBUCG following a state executive council meeting.
CZBUCG, comprises Zenith Construction Sdn Bhd (95%), Juteras Sdn Bhd (4%) and BUCG (1%), was selected as the contractor to undertake the mega project covering a 6.5km undersea tunnel linking Penang to Butterworth and three expressways after a request for proposal made by the state in 2013.
Guan Eng, who called on BUCG on Aug 29 to explain the falling crane hook incident, reiterated that he is not keen to have such a company involved in the undersea tunnel project if it fails to do so.
“Seeing that BUCG is only one of the contractors to build the undersea tunnel and that it seems not keen to take responsibility for the crane hook incident, we asked Zenith to reconsider its partnership with them,” Guan Eng told a press conference here yesterday.
“We want contractors that are responsible and not those that take people’s lives for granted. [When] Consortium Zenith BUCG wrote to us requesting our approval for the removal, we agreed to it,” he added.
According to sources familiar with the situation, the consortium is now looking for a new partner to take on BUCG’s role.
In a separate interview yesterday, CZBUCG executive vice-chairman Datuk Lee Chee Hoe gave assurance that BUCG’s removal will not affect the delivery of the project as the consortium had appointed China Railway Construction Corp Ltd (CRCC) as its engineering, procurement and construction contractor for the project.
“CRCC is our main contractor for the three roads and undersea tunnel project. They are our JV partner. There should be no problem keeping to the timeline. CRCC has also given a completion guarantee if we were to get into any difficulty,” he said.
Lee said with the support of BUCG International, BUCG (M) Sdn Bhd has carried out several construction projects in Kuala Lumpur and it was brought into the fold because of its strength in property development.
BUCG came into the picture when it signed a memorandum of understanding with the Penang government for the mega project on Aug 28, 2011, witnessed by Prime Minister Datuk Seri Najib Razak and then-Chinese premier Wen Jiabao.
Lee pointed out that the feasibility studies and detailed design (FSDD) works on the three expressways have been completed and are pending approval for the Preliminary Environmental Impact Assessment from the Department of Environment. Construction on the expressways is expected to begin in January next year.
The FSDD works on the undersea tunnel, meanwhile, are 91% complete, he added.
It was earlier reported that the 6.5km undersea tunnel was scheduled to be ready in 2025, while the 12km Tanjung Bunga–Teluk Bahang stretch was to be completed by 2018, the 4.2km Lim Chong Eu Expressway and Gurney Drive bypass link by 2022 and the 4.6km Air Itam–Lim Chong Eu Expressway bypass link by 2019.
It was reported that on Aug 25, Chin Khoon Sing, who was from Noordin Street in George Town, died after a one-tonne crane hook at a construction site became detached and fell 20 storeys on her Perodua Kelisa passing by Jalan Raja Chulan.
According to news reports, BUCG was the lead contractor for the city centre hotel project by Harmoni Perkasa Sdn Bhd. BUCG had claimed that it worked with Yekon Equipment (M) Sdn Bhd, owner of the crane equipment, and crane operator called Sufiyan Enterprise.
Guan Eng also said on the state’s part, there is no breach of contract and compensation incurred in the removal of BUCG from the consortium.
“The issue is between Zenith and BUCG. They will sort it out and we do not have to pay compensation to BUCG. The fact is they did not respond to our statement to assume responsibility by contacting Chin’s family,” he said.
In the letter to the Penang government, Zarul said CRCC will continue with the project as the consortium’s JV partner in accordance with its commitment.
He added that Zenith will also request a review of name change for the consortium from the Companies Commission of Malaysia (SSM) to reflect the change of partners. “We are waiting for SSM to suggest a few names before we inform the state.”