No bumi contractors eliminated from RAC projects, says minister

PARLIAMENT | No bumiputera contractors were "eliminated" in the process of renegotiating the Railway Assets Corporation contracts awarded during the previous BN administration.

Responding to a supplementary question from Tajuddin Abdul Rahman (BN-Pasir Salak), Transport Minister Anthony Loke also pointed out that not all of the contracts to develop RAC landbanks involved bumiputera contractors to begin with.

"There is no issue about bumiputera companies being eliminated. These are just renegotiations.

"Even in the past, not all (of the contractors) were bumiputera companies," the minister said during Question Time today.

Tajuddin had argued that the contracts awarded to bumiputera companies showed that BN was "fair," unlike the present Pakatan Harapan administration, that he accused of eliminating such firms.

In response to Wong Hon Wai (Harapan-Bukit Bendera), Loke had earlier noted that RAC identified several plots of land in the Klang Valley, Johor and Penang for development over the next three years.

Unlike the previous practice of awarding contracts through direct negotiations, Loke said the RAC will now issue a pre-qualification notice to shortlist potential companies, followed by an official request for proposal.

"The RAC remains committed to developing its landbanks along railway lines.

"This is proven through RAC's commitment in pursuing partnerships with the public and private sectors, and also on the development of railway infrastructure," he said.

Among others, Loke cited the successful partnership to develop the RM7 billion KL Eco City project in Kuala Lumpur along the Abdullah Hukum LRT and KTM stations involving commercial, residential and office spaces.

He said such projects not only contributed to an increase in ridership, but that the RAC was also allocated 12,000 sq ft in office space to generate long-term income.

As for ongoing development projects, Loke said the RAC had awarded a long-term lease to a private company to develop the Kajang 2 KTM station with an estimated value of RM20 million. - Mkini