Highway costs overshoot by 800 million

Construction delays in sections of the East Coast High-way 2, a mega project under the Ninth Malaysian Plan, had cost the Federal Government an additional RM800mil, according to the Auditor-General’s Report 2012.

The construction of the 184km, four-lane, two-way highway, which starts at Jabur, Kemaman and ends at Kampung Gemuruh, Kuala Tereng­ganu, was divided between the Public Works Department (PWD) and the Malaysian Highway Autho­rity (LLM).

Eight contractors failed to complete their projects on time, despite being given extensions of between eight and 18 months, along with variation of price (VOP) which went up to RM31.87mil.

Among these companies were Arah Jitu Sdn Bhd and GPQ Bukit Putri JV, which were contracted to build two sections each. Arah Jitu failed to complete both sections while the latter managed to finish one.

..To date only 66.92km of the PWD’s project has been completed, but only 11.58km is open.

PWD attributed the delays to the time taken by the Works Ministry to approve the re-tendering work and getting additional allocations for the project.

source: The Star

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Posted in BN government, jijik, kosong

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