Source NST
KUALA LUMPUR: The national treasury is expected to release in stages an additional RM14 billion to ensure government projects nationwide are not delayed due to the rising costs of building materials.
Works Minister Datuk Mohd Zin Mohamed said the cost of government projects was estimated to have gone up between 15 and 20 per cent across the board, hence the move to increase the current RM70 billion development budget.
"To balance out the situation, we have also approved a three-month extension for contractors so they can adjust their implementation schedule." This means that if the completion date was initially set for 24 months, it will now be extended to 27 months without liquidated asset damages," he said yesterday.
Meanwhile, Mohd Zin said the Works Ministry had spent RM6.4 billion, or 65.8 per cent, of its RM13.4 billion budget under the Ninth Malaysia Plan.
He said as of Aug 31, the ministry had completed 209 out of 521 projects nationwide, including 158 highway, road and bridge projects; 36 building projects; and 15 non-physical projects such as studies and design.
"The Works Ministry has been allocated RM2.589 billion to complete the remaining 312 projects currently being implemented or at the planning stage."
Mohd Zin added that his ministry would officially hand over 30 federal projects in Sabah, worth RM1.41 billion, next month.
No comments:
Post a Comment