GEORGE TOWN (June 15): The Penang Undersea Tunnel project has not been stopped by the state government, Consortium Zenith BUCG Sdn Bhd chairman Datuk Zarul Ahmad Mohd Zulkifli clarified today.

Commenting on media reports yesterday citing him as saying that the Penang government had issued a halt order on the 83% completed feasibility studies for the 7.2km tunnel, Zarul clarified that there was no such order and the studies would proceed.

"The feasibility study is expected to be completed in six months. We have good consultants looking into it and it is definitely feasible," Zarul told a press conference in the presence of Chief Minister Lim Guan Eng.

When asked if he did say that the project was halted by the Penang state government, Zarul replied: "I did mention… but (I wrongly stated) maybe because it is the fasting month."

"We were focusing on the roads (the three highways), and we wanted to make sure that we start implementing the roads... our priorities are on the roads first, before the tunnel, which is expected to be completed by 2027," added Zarul.

He said construction of the three highways was expected to commence next year, and targeted to be completed by 2022.

Lim said Zarul's statement yesterday on the tunnel project was a "miscommunication".

"The project needs to get the approval for Detailed Environmental Impact Assessment (DEIA) from the Department of Environment. As far as the tunnel is concerned, if we don't get the approval from DEIA, then the project cannot start.

"All costs incurred to get this approval for the tunnel, including the feasibility study, will be borne by the contractor. The state government will not be responsible for a single sen. If they don't get the DEIA approval for the tunnel, there will be no payment" said Lim.