GEORGE TOWN: Penang Chief Minister Lim Guan Eng Sunday signed a principal agreement with Consortium Zenith BUGC Sdn Bhd for the construction of the Penang-Butterworth sea tunnel.
The RM6.3 billion project will create a third access point linking Penang Island to mainland Malaysia.
Lim said the sea tunnel project would link Persiaran Gurney with Bagan Ajam and three road bypasses and would generate economic development in the state.
"It will not only generate the state economy but also create employment and construction spin-offs in Seberang Perai Utara (SPU)," he told a press conference after the signing ceremony.
An engineering, procurement and construction agreement was also signed between Consortium Zenith BUGC Sdn Bhd and China Railway Construction Corporation Ltd.
The project comprises a 4.2km bypass from Gurney Drive to Lebuhraya Tun Dr Lim Chong Eu, a 4.6 km bypass between Lebuhraya Tun Dr Lim Chong Eu and Bandar Baru Air Itam, a 12km paired-road from Jalan Tanjung Bungah to Teluk Bahang and the 6.5km Penang-Butterworth sea tunnel.