BUCG Out From RM6.3b Penang Tunnel Project



GEORGE TOWN, Sept 6 – Penang Chief Minister Lim Guan Eng hold a press conference today said Beijing Urban Construction Group (BUCG) has been withdrawn from Consortium Zenith BUCG Sdn Bhd, the contractor in charge of RM6.3 billion Penang’s undersea tunnel and three paired roads projects. 

He revealed a letter from the consortium dated September 3 applying for the state’s approval of BUCG’s withdrawal as a shareholder and a change in name for the consortium. Consortium Zenith BUCG Sdn Bhd is the company involved in the three main highways and third link (tunnel).

However, BUCG only plays a small part and the withdrawal will not affect the project as China Railway Construction Corporation Ltd (CRCC) is the main joint venture partner. He added that the state government had told BUCG to take responsibility for the accident in Kuala Lumpur last month where part of a crane operated by the firm had fallen and crushed a woman to death, or withdraw from the Penang project. 

On the early agreement signed with the consortium and China Railway, Lim said it was valid even if the consortium changes its name to remove BUCG. In a recent meeting, the Exco members had agreed that BUCG which was the company responsible for the crane incident is no longer allowed to operate in Penang.

In the letter signed by Consortium Zenith BUCG chairman Datuk Zarul Ahmad Mohd Zulkifli, Zenith will take the steps to change the consortium’s name to omit mention of BUCG upon approval from the state government. Lim said has been given. In the tragedy, Khoon Sing was driving along Jalan Raja Chulan when a crane hook from on top a building fell and hit on her car, killing her instantly on Aug 25. 

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