GEORGE TOWN: The Penang Light Rail Transit (LRT) project will continue regardless of any changes in government, says Economy Minister Rafizi Ramli.
Rafizi said he is confident in the project's progress and added that the current government is likely to remain in power long enough to oversee its implementation.
"Even if there is a change in administration in the future, the new government will be obligated to continue the LRT project or risk facing legal action," he said.
He explained that cancelling a project becomes nearly impossible once contracts are awarded, as it would expose the government to significant compensation claims.
Infrastructure projects like the LRT go through several stages: policy approval, budget confirmation, procurement, and contract awarding.
"Once a contract has been awarded, the government is legally bound by its commitments to private parties," he added.
He noted that cancellation is only feasible during the early stages, before tenders are issued and contracts awarded. Once contracts are signed and work begins, any decision to cancel would risk substantial compensation to contractors.
Rafizi also said that if there is a change in government, the main risks would be increased costs and delays in implementation, not project cancellation.
He was responding to a public question during the "Madani Mendengar" event at Setia Spice Convention Centre.
About 1,000 people from state and federal government agencies, non-governmental organisations, and the public attended the event.
Rafizi also referenced the East Coast Rail Link (ECRL) project, which he criticised when he was in the opposition.
He opposed it at the time because the costs reached RM70bil, which was deemed uneconomical. However, once the project began and land was acquired, it could no longer be cancelled.
He suggested that if contractual terms are unfavourable to the public, the government could attempt to renegotiate, such as reducing costs, though this would be subject to existing agreements.
Rafizi also touched on the role of Environmental, Social, and Governance (ESG) in implementing infrastructure projects.
He said an emphasis on green components would contribute significantly to the economic evaluation of projects like the LRT.
"The ESG components, particularly the green element, play an important role. That is why many parties use the terms ESG and green interchangeably in the context of the economy," he said.
The programme is scheduled to continue at 2.30pm with the presence of Chief Minister Chow Kon Yeow.
