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Awards for highway out in 2 weeks

PostPosted: Mon Dec 20, 2010 2:32 am
by admin
KUANTAN: Work on the six problematic packages for the second phase of the East Coast Highway, or LPT2 is expected to start early next year.

Works Minister Datuk Shaziman Abu Mansor said the successful contractors for the project would receive their award letters in two weeks.

Expected completion of the 184km stretch -- from Jabor, near here, to Kampung Gemuroh in Terengganu -- is scheduled for end of 2012.

Shaziman said the contract on five of the packages had been terminated mutually, when both ministry and the contractors involved agreed that the quoted costs could no longer cover the increase in material prices.

The sixth package was terminated when the contractor failed to deliver.

Shaziman, however, said the contractors were not blacklisted, but allowed to bid again for the six packages, adding that some would receive different stretches to build.

"We accept that it was not their fault as the original quotations were made in 2006, before the prices of petroleum-related products and steel soared more than 100 per cent in 2007 and 2008."

The new cost for the six packages is RM410 million.

The LPT2 is the extension of the 169km LPT1, the first phase of the East Coast Highway from Karak to Kuantan.

Construction of LPT2 began in March 2006 with an initial cost of RM3.7 billion. It was divided into 16 packages to allow more contractors to benefit from it.

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