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Monday July 30, 2007

Decision today on contractor’s appeal against termination


KUALA LUMPUR: A contractor responsible for building a stretch of the Trans-Eastern Kedah Interland (TEKI) highway will know today the result of an appeal against the termination of its contract by the Works Ministry. 

Minister Datuk Seri S. Samy Vellu said he would decide on the fate of the contractor after receiving a report from the Public Works Department (PWD) director-general. 

On Thursday, Samy Vellu said he had ordered the PWD to issue a termination letter to the contractor, Konsortium BDB Kerry Sdn Bhd, a joint-venture company between Kedah government-owned company Bina Darulaman Bhd (BDB) and Pembinaan Kerry. 

He said they were slow and had not shown much interest in completing the project. 

At a press conference yesterday, Samy Vellu said Kedah Mentri Besar Datuk Seri Mahdzir Khalid had appealed to him to reconsider, saying the problem was not that the contractor was slow but that the two companies had problems. 

“I will consider this request and then decide based on a report by the PWD. If my decision remains, then we will have to look into other alternatives such as appointing the sub-contractor to take over,” he said. 

Samy Vellu said the contractor was in charge of one of three packages of the RM480mil highway or 74.3km of the 114.7km highway.  

“The value of the contractor’s package is RM287mil and only 21% of the work has been completed when the target is 37%. The package is due for completion in September 2008.” 

In August 2004, the Government had allocated the money for the TEKI highway, which is to be classified as a federal road and meant to connect Durian Burung in Padang Terap to Kupang in Baling (both in Kedah).  

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