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Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the postponement of the project. 12.12.2003.

Very often, the Malaysian Government finds it difficult to explain why it awards certain projects to particular people. The appointment of Gamuda and MMC to build the 620-kilometre double-track railway in Peninsular Malaysia causes concern. The postponement of the project raises eybrows.

The postponement of the double-track railway project affects Gamuda and MMC.

Yesterday, Prime Minister Dato' Seri Abdullah Ahmad Badawi announced that the Cabinet had decided to do so because the Government has priority for other more important projects such as health, education and socio-economic projects under the 8th Malaysia Plan (8MP). The double-track project is not under 8MP, the total allocation of which has been increased from RM110 billion to RM160 billion.

The railway project that was estimated to cost RMRM14.5 billion was given to Gamuda and MMC, causing Ircon to be shocked. Ircon is the consortium of China and India; it had a letter of intent on the project. Both countries are major importers of Malaysian palm oil.

One of the projects contracted to Gamuda and MMC are the smart tunnel, the flood mitigation project in Kuala Lumpur. Among others, Gamuda is also working on Bukit Badong water plant. Gamuda's series of projects within and outside this country may amount to RM6.7 billion. With the postponement, it may be reduced to RMRM1.6 billion.

We hope that the Government action will not affect projects such as the flood and water projects stated above. Will the smart tunnel be completed in time? Will the works be according to specifications? The Government will have to let the people know.

Dr Tan Seng Giaw