GEORGE TOWN, MALAYSIA: The state government will decide soon on the site for the proposed Penang Hill cable car project.

State Tourism Committee chairman Law Heng Kiang said two proposals had been received so far.

One is to build the cable car from Teluk Bahang to the hill and the other is from the Youth Park to Penang Hill.

He said the estimated cost for the first proposal was RM60 million while the second would cost RM80 million.

Law said the state government was pleased with the proposals submitted by the two companies.

"Both are local companies with huge experience in constructing cable cars."

He said the contract to build the cable car system would be decided through open tender.

Law said the state government was in favour of the cable car project as it would be an added attraction to the hill and the state's tourism industry.

Once completed, the cable car system is expected to attract about 8,000 visitors daily.

At present, Penang Hill is accessible by using the funicular railway, which has now been temporarily halted for upgrading and maintenance works.

Frequent breakdowns of the railway system has forced the authorities to look for alternative services to enable tourists to visit the hill.

Visitors can also use the jeep-track to go up the hill.