BUTTERWORTH: The Federal Government yesterday announced a RM140 million windfall for Penang despite allegations by the state government that it was punishing the people here.

A total of RM100 million will be spent on buying 200 new RapidPenang buses from now until the end of next year and RM40 million to upgrade the Penang Hill funicular railway system.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the allocation clearly showed the government's commitment to ensuring quality public transportation and infrastructure for the people of Penang.

He said with the purchase of 200 buses, RapidPenang, which celebrates its first anniversary at the end of this month, would have a fleet of 350 buses.

This would enable the company to expand its services with 14 new routes. RapidPenang now serves 33 routes covering 106 residential areas.
"We expect the number of people using RapidPenang to increase to 120,000 a day compared with 48,000 at present," Nor Mohamed said at the launch of the Penang Sentral temporary bus terminal here.

Present were state Public Works, Utility and Transportation Committee chairman Lim Hock Seng, Seberang Prai Municipal Council president Farizan Darus, Penang Sentral Sdn Bhd chairman Kamalul Arifin Othman, Pelaburan Hartanah Bumiputera Bhd chairman Tan Sri Md Nor Md Yusof and Malaysian Resources Corporation Bhd chairman Datuk Azlan Zainol.

"We also expect the percentage of public transport users to increase to 30 per cent by 2010 compared with the current 10 per cent."

He added that the move would also address the perennial traffic woes on the island.

Nor Mohamed said that he would also assist RapidPenang find a permanent site, possibly in Pengkalan Weld, to serve as its depot.

On the upgrading of the Penang Hill funicular railway system, he said Prime Minister Datuk Seri Abdullah Ahmad Badawi had agreed to his and that of Chief Minister Lim Guan Eng's appeal for RM40 million.

The component was initially removed from the list of Ninth Malaysia Plan projects in the recent Mid-Term Review of the 9MP.

The funicular railway service has been suspended indefinitely since last month because of faulty cables. The train service now only transports residents at hourly intervals.

Lim welcomed the reinstatement of the RM40 million to upgrade the railway service at Penang Hill.

"We hope the project will start as soon as possible to ensure normal services can resume ," he said.

On Lim's suggestion that the Federal Government give cash to the state government for the deferment of the RM1.5 billion Penang Outer Ring Road (PORR) and RM2 billion monorail projects, Nor Mohamed said: "It is up to the prime minister and the Economic Planning Unit to decide on the matter since both are major projects."

He added that he had also discussed with Penang Port Sdn Bhd (PPSB) managing director Datuk Ahmad Hajar on the possibility of operating the ferry services round-the-clock on Friday, Saturday, Sunday and public holidays.

Nor Mohamed also said that the road widening project on the Penang Bridge had caused massive traffic jams, especially on those days.