SEBERANG PERAI: The actual cost of the second Penang bridge is now RM4.585 billion, up from RM4.3 billion, and it is set to rise even higher in line with the market prices of raw materials. UEM group Bhd managing director Datuk Ahmad Pardas Senin said the additional RM285 million was caused by preliminary development costs for the 24km-long bridge.

The total cost may continue to fluctuate as UEM's agreement with the government includes a price escalation clause.

UEM is allowed to adjust the cost price according to the market prices of steel, concrete and diesel, he said after a media tour of the site in Batu Kawan yesterday.

The bridge was originally projected at RM3.6 billion in 2006 when the price of steel was RM1,850 per tone. Steel in now RM4,000 per tone.

He explained that the soil investigation for land and sea had been completed, and UEM was in the midst of completing the casting yard and land acquisition.

"The casting yard is 70% complete, and we hope to start the segment box girders by October," he said.

Dredging will be completed by end of the year before piling works can start.

The construction of the bridge proper might start by next year, he added, stressing that the project was still on schedule to be completed by the end of 2001.

UEM will need to acquire 89ha from Penang Development Corporation (PDC), and 24 ha from private owners, at a total cost of RM57 million, he said.

UEM is currently working with the state Land office on the acquisitions.

The project is a partnership between UEM (49%) and China Harbour Engineering Company (CHEC) (51%).

UEM is mainly in charge of assembly of box girders, while CHEC oversees pilling works, foundations and tiers.  The bridge is a box-girder bridge spanning 24km, of which 17km is over water with three lanes on each side.

On the concession agreement, Ahmad said UEM will leave it to the government to decide whether to open it for tender.