GEORGE TOWN: The main contractor for phase one of the Gurney Bay project was fined a total of RM1,609,157.55 for delays in completing the project.
State Local Government Committee chairman H'ng Mooi Lye said this was despite three EOTs (extension of time) given to the company.
The Gurney Bay project is a state government initiative to provide the public with a recreational park.
The Gurney Bay project is being implemented in two phases — Phase 1 and Phase 2.
H'ng said on March 29, 2022, the state government appointed Syarikat Teto Engineering Sdn Bhd as the main contractor to implement this project.
The project start date was March 31, 2022 and the original completion date was March 30 last year for Phase 1.
"The state government had given three EOTs — from March 30 until May 29 last year (first EOT), May 29 until July 4 last year (second EOT) and July 4 until Nov 30 last year (third EOT).
"The EOT approval given to the contractor is due to additional work for the seawall structure, revetment and rock excavation for piling.
"Phase 1 of the Gurney Bay project was completed and opened to the public on Feb 4 this year, which is later than the original date set.
"The contractor's delay in completing this project resulted in it being fined," he said in reply to a question from Joshua Woo (DAP - Pulau Tikus) at the State Legislative Assembly sitting here today.
H'ng (DAP-Jawi) said the daily fine rate imposed on the company for failing to complete the work as scheduled was RM24,756.27 a day for Phase 1, and RM83,613.59 a day for Phase 2.
"The total fine for the Phase 1 project is RM1,609,157.55, or equivalent to 65 days of delay."
It was reported on Feb 4 that Penang rolled out its latest attraction, Gurney Bay.
The project, valued at more than RM200 million, was divided into two phases.
Phase 1, which covers 11.2ha, included a children's play area, skate park, south vantage point viewing deck, public toilets, pedestrian promenade, hawker stalls, retail area, recreational park, hawker kiosks and an open car park.
Phase 2, which covers 28.8ha, has a hawker centre, retail area, convenience stores, north viewing deck, public toilets, additional hawker kiosks, multi-storey car park, open car park, water garden, surau, water taxi jetty, man-made beach and boardwalk.