Penang Watch

The Government will pay big time to the contractor whose approved project was aborted. So they should. But whose change of mind cost the government/tax payers so much? Whoever ordered the commencement of the project before the Government secure agreement from the Singaporeans should be made to face the music for commiting such a economic crime. But why is the Auditor General or the ACA service not utilised this time?  

2007/10/25(NST)

RM237m for scrapped bridge contractor

Datuk Hilmi Yahaya says government plans to build a link at the Causeway

THE contractor of the scrapped crooked bridge across the Johor Straits has to date been compensated RM237 million.

Finance Ministry parliamentary secretary Datuk Dr Hilmi Yahaya said the amount included RM55 million for work already carried out on the site by Gerbang Perdana Sdn Bhd.

The government has approved RM292.5 million in compensation.

The RM1.113 billion bridge project to replace the Causeway was aborted following conditions imposed by Singapore such as that Malaysia supply the republic with sand and allow it the use of Johor airspace.

Hilmi said discussions were ongoing with the state government to build a link connecting the causeway to the Customs, Immigration and Quarantine Complex.

On another aborted project, the Broga incinerator, Hilmi said the compensation amount had not been determined.

Replying to Dr Mohamed Hayati Othman (BN-Pendang), he said negotiations have not concluded with contractors Konsortium Ebara Corporation and Hartasuma Sdn Bhd on the RM1.5 billion project.

The incinerator was meant to handle 1,500 tonnes of solid waste per day and serve as a centralised waste disposal system for the Klang Valley.

But it was opposed by residents who claimed it was harmful to the environment and public health.

The government scrapped the project last July.