KUALA LUMPUR: Project delays due to Covid-19 were among reasons for the increased cost of road upgrades, says Datuk Seri Abdul Rahman Mohamad.
The Deputy Works Minister said several projects were halted for over one and a half years due to the pandemic.
"Within the construction sector, Covid-19 has affected it a lot. When the contractors were forced to leave their projects (owing to the pandemic), it would be hard for them to return and restart it again.
"The cost of materials has risen by between 10% to 13%. That’s why the cost has gotten more expensive," he said when winding up his Budget 2024 speech on Wednesday (Nov 15).
Abdul Rahman was responding to Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) who had asked why project cost for road upgrades under Budget 2024 had increased by at least 136% compared to the year before.
In directing his question to the works Ministry, Dr Wee said under Budget 2023 it cost RM525mil to upgrade a 20km stretch of road between Senai Utara and Sedenak.
However, under Budget 2024, it cost RM931mil to upgrade a 15km-stretch from Sedenak to Simpang Renggam, Johor.
Abdul Rahman in response also said the cost stated in the Budget 2024 could only be finalised after the projects were completed.
"The cost to implement the upgrading project from Sedenak to Simpang Renggam will start only after the value and engineering assessments, appointment of consultant, design of the highway and appointment of contractors are done.
"The selection of this stretch from Senai Utara to Simpang Renggam was made based on the daily level of service as well as inclining stretch reaching to the destination," he added.
The Deputy Minister said the current highway operator was in the process of appointing the consultant and the construction would start in the second quarter of 2024 and was expected to be completed by 2027.
