PETALING JAYA: The package 2 of the Lot 61 Bangsar mixed-development project remains incomplete, 1,731 days past its original completion date, according to the Auditor-General’s Report (AG’s Report) 1/2026.
The report states that the Lot 61 Bangsar Project is a 15-year, five-phase mixed development by Perbadanan Hartanah Bangsar (PHB), comprising an office tower, hotel, serviced apartments, a retail podium, underground parking, and public amenities.
"As of Oct 30, 2025, the package remains incomplete, representing a delay of 1,731 days," it said.
The construction work began on April 16, 2018 with an original completion target of Feb 2, 2021, spanning 34 months.
However, the completion date was repeatedly revised through Supplementary Agreement (SA) 1 and Extensions of Time (EOTs) No. 1 and No. 2 approved by PHB.
A further revision under SA 2, signed on January 30, 2023, set a new completion date of 15 June 2024.
"Despite these adjustments, Package 2 was not finished on time.
"On 16 June 2024, PHB, via its Project Management Consultant (PMC), issued a Certificate of Non-Completion to the contractor," said the report.
To this, PHB said for the purpose of obtaining the Certificate of Completion and Compliance (CCC), an appeal was submitted to DBKL to secure the CCC without constructing an Underpass Tunnel.
"Initial discussions with DBKL were held on Aug 21 2025, and PHB’s Facility Management submitted the application for a parking operation license to DBKL on Sept 30 2025.
"As of October 31, 2025, the Kuala Lumpur City Hall (DBKL) is still reviewing the appeal submitted by PHB," it said.
According to the Audit Report, as of Oct 31, 2025, PHB had spent a total of RM881.65mil on the project, exceeding the approved budget of RM568.21mil by RM313.4mil.
"The audit analysis also found that PHB had spent RM409.16mil (72%) of the allocated RM568.21mil construction costs.
"The remaining unspent balance of RM159.05mil is insufficient to cover the construction costs of Tower 1 (RM226.44mil) and the Underpass Tunnel (RM31.26mil), which together are estimated at RM257.70mil," it said.
On this issue, PHB said increase in construction costs is due to an expanded project scope, instability in building material markets, and rising general and financial costs caused by the extended implementation period.
To address these impacts, PHB is conducting a Comprehensive Feasibility Study for the project.
This study includes a cost review, project scope restructuring, and a financial viability assessment to develop a more sustainable Strategic Development Plan, said PHB.
The audit report stated that weaknesses in the planning and implementation of the Lot 61 Bangsar development have resulted in project delays, cost overruns, and the failure to obtain the CCC.
The inability to secure the CCC, it added, has prevented the completed parking facility from operating and generating returns for PHB.
"The significant increases in construction and general costs, particularly financial charges exceeding the original allocation, indicate that project costs were not effectively planned or monitored.
"In addition, the remaining funds are insufficient to cover the main construction works, namely Tower 1 and the Underpass Tunnel, posing a risk to the continuity and completion of the project as per the approved scope," it said.
