Renegotiations yield results

PETALING JAYA: A total of 121 infrastructure projects, worth more than RM13.9bil nationwide, will proceed following renegotiations of their costs by the government, says Lim Guan Eng.

The Finance Minister said all the projects were offered through direct negotiations and limited tender by the previous administration.

Lim said the renegotiated cost of the projects resulted in a total of RM805.99mil worth of savings.

“The 121 projects did not involve mega projects such as LRT3 and MRT2, which cost RM31.65bil and RM39.35bil, respectively.

“The cost of both projects have been reduced to RM16.63bil for LRT3 and RM30.53bil for MRT2,” he said in a statement.

On June 29 last year, the ministry announced a few measures to improve the management of the government’s procurement process and the country’s finances.

“Among the measures introduced were re-evaluating projects which were offered through limited tender and direct negotiations by the previous government.

“Based on the studies conducted, the government decided to conduct open tender for such projects before issuing the acceptance letter,” Lim said.

He said for the 121 projects, of which acceptance letters had been issued, additional clauses would be finalised by the end of March after the cost of the projects had been renegotiated.

“Currently, all details of the projects will be handled by the respective ministries.

“With the latest developments, the Finance Ministry is confident the procurement implementation through open tender will lead to the reduction of costs and the best interest value to the government and the people,” he said.

Lim Guan Eng , projetcs