By Shikin Louis
KUCHING, May 26: There has been no cost overrun for the ongoing Autonomous Rapid Transit (ART) project despite a slight delay in implementation, said Sarawak’s Transport Minister Dato Sri Lee Kim Shin.
He clarified this during his winding-up speech in the Sarawak Legislative Assembly (DUS) today in response to concerns raised by Padungan assemblyman Chong Chieng Jen, who had earlier claimed that delays in projects typically lead to additional costs.
“In response to the statement made by the Honourable Member for Padungan that ‘Normally when projects are delayed, it comes with cost overrun,’ I wish to inform this august House that it is not true for this particular case.
“The minor delay of -3.97 per cent has not caused any cost overrun up to this stage,” he said.
Lee mentioned that under the Kuching Urban Transportation System (KUTS) contract supervision, any delay by the appointed contractor or contractors are required to submit and execute a catch up/mitigation plan.
“Any delays caused by the contractors, shall be subject to Liquidated Ascertained Damages (LAD); this is a standard contract management practice,” he pointed out.
Lee also clarified that the Green Line package has yet to be awarded, while the Yellow Line is not part of KUTS Phase 1 and will only be implemented in the next phase of the project.
“As for the request on the cost of awarded packages, it will be provided to the Honourable Member for Padungan in writing, as he has submitted questions for written reply on the same matter,” he added.
On May 23, Chong expressed concern over the ART project, noting that its implementation appeared to be behind schedule by over 3 per cent.
He pointed out that delays in infrastructure projects typically result in cost overruns, and called on the government to provide transparency on the actual costs involved.
“May I put in the question today—what is the original estimated cost for the construction of the ART project?” he asked.
“Each individual line—the red line, yellow line, green line—and whether there are cost overruns up to this stage?” – DayakDaily
