AFTER a delay of seven years and four months and cost overruns of RM68.25mil, the construction of Hospital Shah Alam is finally completed.
Public Accounts Committee (PAC) chairman Datuk Nur Jazlan Mohamed said the hospital, built at a cost of RM550.85mil, would be opened in stages beginning June and fully operational by January next year.
“The PAC recommends that the Government only award specialised construction projects to capable developers with the required expertise to avoid similar problems for future projects,” he said after chairing a PAC meeting.
He said the project was initially awarded to Sunshine Fleet Sdn Bhd at a cost of RM419.6mil under a three-year contract between Sept 15, 2007 and Sept 14, 2010.
“The company, however, only managed to complete 27% of the project at a cost of RM139.9mil before its contract was terminated on Oct 3, 2010,” he said.
The project was revived and awarded to Gadang Engineering Sdn Bhd on Oct 10, 2011, at a cost of RM491.6mil.
Nur Jazlan added that Gadang had applied for an extension twice and only finished work on Tuesday due to having to spend time rectifying the initial work by Sunshine Fleet.
The Public Works Department is taking action against Sunshine Fleet.