CRCC is main contractor: Lim

> Penang CM says China firm signed pact in 2013

GEORGE TOWN: Chief Minister Lim Guan Eng ( pix) has denied claims by Transport Minister Datuk Seri Liow Tiong Lai that China Railway Construction Corporation Ltd (CRCC) was not a party to the proposed RM6.3 billion cross-channel undersea tunnel project.

Saying that the agreement was legally binding, Lim said the project, which has turned controversial due to a stand-off with MCA and Gerakan, had listed CRCC as the main contractor. Lim also played a video of the signing in 2013 where CRCC (International) Ltd chairman Zhou Lei, the under-signatory to the preliminary agreement, said CRCC was a top 25 construction company in the world. Zhou had said the company was a construction specialist especially in tunneling ,with an average of 1,300km long tunnels constructed each year in view of the number of global projects that CRCC was involved in.

Lim said at a press conference that he had issued 10 points to dispute both Liow, who is MCA president and his deputy Datuk Seri Dr Wee Ka Siong who criticised the state over the project.

“I hope that Liow and MCA do not try to sabotage the project by causing anxiety to the main contractor and the consortium (Zenith Construction Sdn Bhd) with the Malaysian Anti Corruption Commission investigation and false information disclosed to the Barisan Nasional media,” he said.

Lim said Zenith Consortium, who won the open competitive tender to be the project delivery partner, had a minimum paid-up capital of RM381 million at the time of the agreement’s signing (in 2013).

The state government will hold CRCC to its contractual obligations and will seek legal advise accordingly.

Because of CRCC’s commitment as the main contractor with a paid up capital of US$4.5 billion (RM17.6 billion), the project received backing from several companies as well as the consortium.