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UPGRADING of the 6km bypass between Air Itam and the Tun Dr Lim Chong Eu Expressway in Penang has hit a snag after the developer encountered financial issues.
With rising living costs and disruptions to the supply chain due to the Middle East conflict, Chief Minister Chow Kon Yeow confirmed that the developer, Consortium Zenith Construction Sdn Bhd, has slowed its construction phase due to land acquisition and internal financial constraints.
The project is still scheduled to be ready by the end of this year, at the latest, by April 2027.
Once ready, the bypass, which originates from the highly dense Air Itam township, will reduce travel time to the Penang Bridge from 40 minutes to around ten minutes.
Chow was responding to criticism that the roadworks would take nearly 14 years from their initial award to completion, compared to the previous estimate of six years.
"The contract was awarded in 2020. How can it be 14 years?" he told journalists.
The 6 km elevated bypass, costing RM851 million, was initially slated for completion in 2025 before being extended due to the various issues encountered by Zenith.
"There are delays, but it has not reached the final deadline yet, which is April 2027," Chow replied to pressing queries.
"I think it is due to financial issues involving the concession company," he added.
Chow also dismissed claims that the Covid-19 remained a factor in the delays.
He earlier also said that the state has yet to make any decision on the proposed RM1 billion Jelutong landfill rehabilitation and reclamation project pending presentation from Penang Development Corporation (PDC).
“Tomorrow is a holiday, so PDC will present to the state exco next week,” he told reporters after launching a “Oh Malaysiaku” music video at 1st Avenue Mall here.
The event was organised by the developer, Ideal Property Group.
The contractor of the proposed project - PLB Engineering Sdn Bhd, was scheduled to present working papers on the project to apply for an extension of time to meet the requirements of the approving agency, the Department of Environment (DOE).
The project’s Environmental Impact Assessment (EIA) application was rejected by the DOE for the fifth time in March this year.
It was reported that PLB has resubmitted another application after updating the requirements in accordance with the conditions set by the DoE.
PDC signed a deal with PLB Engineering Bhd to rehabilitate and develop the Jelutong landfill at RM1 billion back in 2020.
The project included the reclamation of 30ha of land off Karpal Singh Drive, which has received backlash from an action group of residents living in the adjacent Karpal Singh Drive neighbourhood.
Protect Karpal Singh Drive Action Committee members have repeatedly called for the project to be cancelled due to environmental concerns, especially its proximity to the Middle Bank Marine Sanctuary.
The sanctuary spreads around 10 square kilometres in the waters of the South Channel between Penang Island and the mainland.
It is home to a seagrass bed, and a study has revealed that a total of 429 species of seagrass, trees, vegetation, fish, birds, marine mammals, turtles, molluscs, arthropods and echinoderms were found there. - May 26, 2026.