Penang LRT unlikely to be cancelled even if federal govt changes - Rafizi

The Penang Mutiara Light Rail Transit (LRT) project is unlikely to be cancelled, even if there is a change in the federal government.

Economy Minister Rafizi Ramli said the federal government has already made all key decisions, and the necessary processes are in place to ensure the tender can be awarded promptly.

“I believe this federal government will stay in office until the end of its term, and by then, all tenders would have been awarded.

“So, I don’t think any incoming government could reverse this. Cancelling would require paying compensation to the contractor. Based on current progress, I believe this will remain the case,” he said during the 13th Malaysia Plan Engagement Session held in George Town today.

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Rafizi added that infrastructure projects follow a structured process, starting with policy approval, budgeting, procurement, and finally, the awarding of tenders before construction begins.

He added that before tenders are awarded, the government retains the option to cancel a project, as there are no binding commitments with private contractors at that stage.

Artist impression of Penang LRT

However, once the tender is awarded and a contractor is appointed, cancellations are usually not an option because the government could face legal action.

“The current risks are mainly cost escalations or delays in completion, but reversing the project is not a straightforward process,” he said.

- Bernama