GEORGE TOWN: UEM Group Bhd should explain why it has been increasing the projected cost of the second Penang Bridge, Chief Minister Lim Guan Eng said yesterday.

Expressing disappointment with the company, which is the main contractor of the bridge project, he said he had a meeting with UEM Group Bhd officials two weeks ago where he was told that the project would cost RM4.3 billion.

"However, they are now saying it is going to be RM4.59 billion and may even reach RM5 billion. It is not right for the company to keep increasing the cost as it likes."

Speaking after launching the Matta Fair Penang 2008 here yesterday, Lim said the people had a right to know the details of the project.

"UEM should detail the actual cost and the specific breakdown.
"The company cannot simply add on another RM300 million in such a short time," he said, adding that the original cost of the project was just RM3.6 billion.

On Wednesday, company managing director Datuk Ahmad Pardas Senin said that the cost of RM3.32 billion was for the portion of the bridge over water, followed by RM997 million for the portion over land.

Another RM285 million was for the design, concept and preliminary works that was agreed upon with the government.

The 24km second Penang bridge (of which 17km will be on water) will link Penang island and Seberang Prai.