GEORGE TOWN: The Consumers Association of Penang (CAP) says the state government should not request for a RM1 billion soft loan from the Federal Government to expedite the implementation of the Penang Transport Master Plan (PTMP).
Yesterday, Chief Minister Chow Kon Yeow said the state government would consider requesting a RM1 billion soft loan from the Federal Government to allow the Pan Island Link (PIL) and light rail transit (LRT) projects to be implemented simultaneously to ensure that the people could enjoy the new facilities in five to six years.
CAP president S.M. Mohamed Idris said today that the group was shocked because Chow and his predecessor, Lim Guan Eng, had assured the public that the project would not involve public funds.
“Now a different story is being told. If this loan goes through, it may put at risk the state’s finances,” he said.
“There are large economic and environmental risks associated with PTMP and it is doubtful that some key projects linked to the plan can generate revenue to pay for themselves.”
Idris also asked whether the state would end up borrowing more if the RM1 billion proved to be insufficient.
“This will only add a heavier burden on the state and people of Penang.
“We have been told by the Federal Government, including Lim (the Finance Minister), that Malaysia cannot afford new megaprojects because of the trillion ringgit national debt.
“Why should an exception be made for PTMP? The estimated cost of the project is more than RM40 billion.”
Idris said Penang needed funds from the Federal Government, but stressd that these funds were needed for essential expenses such as the rehabilitation of hundreds of hillslopes and hill areas affected by landslides, rehabilitation and conservation of coastal areas such as beaches and mangrove forests, flood mitigation projects, and improving the living conditions of vulnerable and poor communities.
“These are all vital areas for financing if Penang is to recover from the damage caused by recent storms, high winds, heavy rainfall and floods and to prevent or minimise such problems in the future,” he said.
“The Penang government should be requesting the Federal Government to urgently finance a comprehensive plan to avoid floods and other environmental disasters.
“PTMP, especially with the cutting of hills and the massive land reclamation from the sea, will only add to these environmental problems, rather than solve them.”
Idris also reiterated CAP’s call for a comprehensive review of the whole of PTMP.
Idris pointed out that the Environmental Impact Assessment report for PIL showed that many public amenities, including the Youth Park, schools, temples, and sensitive areas such as Penang Hill and other hills, would be seriously affected.
“Many communities are now waking up to the fact that PTMP will have a disastrous effect on our way of life and the environment.
“PTMP should be suspended until a comprehensive review is done and communities which will be seriously affected understand the impacts and are able to provide feedback.
“The state government should not be asking for the RM1 billion loan to accelerate the implementation of PTMP and the Federal Government should not be providing such a loan.”