Delay in Rembau hospital project costs govt RM8 mil

Health Minister Dr Dzulkefly Ahmad says the cost has escalated from RM96 million to RM104 million.

Health Minister Dr Dzulkefly Ahmad says the Rembau hospital should have been completed in 2016. (Bernama pic)

REMBAU: The government has to bear an additional cost of RM8 million following a delay in the completion of the Rembau Hospital project, said Health Minister Dr Dzulkefly Ahmad.

He said the original cost when construction of the hospital began in Sept 2013 was RM96 million but as a result of the delay, it had escalated to RM104 million.

He reckoned the hospital would be completed in the first quarter of next year, though the contractor had assured that the project could be ready by the end of this year.

He said the project which should have been completed by Sept 8, 2016, was delayed due to among others, problems involving the contractors and consultants over the initial building plan.

“Should there be further delay, the ministry will not hesitate to take firm action against the contractors to avoid from having to pay cost overrun,” he said after a working visit to the Rembau Hospital construction site, here, today.

Also present were State Health, Environmental, Cooperative and Consumer Committee chairman S Veerapan and health director Dr Zainudin Mohd Ali.

Dr Dzulkefly said stern action would also be taken against problematic contractors as penalties would be imposed and they could be blacklisted and prevented from participating in any government tender.

He said the ministry was also monitoring 23 “sick” projects, including clinics and hospitals which were 20% behind schedule.

“I will look into each and every one of these sick projects and warnings will be issued to ensure the projects are completed on time,” he said.

He added that from now, the ministry would make sure that the awarding of tender would be based on the company’s financial position, experience and success in meeting the project’s schedule. -FMT