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Sunday, March 31, 2019

121 BN-era projects greenlit after renegotiated savings of RM806m



Finance Minister Lim Guan Eng said today that 121 BN-era projects will proceed after renegotiations resulted in cost savings of RM805.99 million.
In a statement today, he said the previous administration had entered into these projects through direct negotiations and limited tender.
"The government had decided to conduct an open tender for all projects that were entered into through limited tender and direct negotiation, but for which letters of acceptance had not been issued.
"As for the 121 projects which were awarded through limited tender and direct negotiation, but for which letters of acceptance had already been issued, supplementary agreements will be finalised by the end of March after prices have been renegotiated down," he said.
Lim said the total value of the projects has been brought down to RM13.126 billion.
This, however, does not include megaprojects that Putrajaya had also renegotiated – like the LRT3, which was brought down to RM16.63 billion from the initial price of RM31.65 billion, as well as the MRT2, which was brought down to RM30.53 billion from RM39.35 billion.
Lim noted that the two renegotiated megaprojects represented an additional RM23.84 billion in savings.
"The Finance Ministry is confident government procurement through open tender going forward will lead to further savings and value for the government and people," his statement read.
 - Mkini

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