Penang Mutiara LRT project unlikely to be cancelled even if there's change in govt after current term, says Rafizi

• “I believe this federal government will stay in office until the end of its term, and by then, all tenders would have been awarded. So, I don’t think any incoming government could reverse this. Cancelling would require paying compensation to the contractors. Based on current progress, I believe this will remain the case.”

GEORGE TOWN (Dec 11): The Penang Mutiara Light Rail Transit (LRT) project is unlikely to be cancelled, even if there is a change in the federal government.

Economy Minister Mohd Rafizi Ramli (pictured) said the federal government had already made all key decisions, and the necessary processes are in place to ensure the tenders can be awarded promptly.

“I believe this federal government will stay in office until the end of its term, and by then, all tenders would have been awarded.

“So, I don’t think any incoming government could reverse this. Cancelling would require paying compensation to the contractors. Based on current progress, I believe this will remain the case,” he said during the 13th Malaysia Plan Engagement Session held here on Wednesday.

Rafizi added that infrastructure projects follow a structured process, starting with policy approval, budgeting, procurement and, finally, the awarding of tenders before construction begins.

He added that before tenders are awarded, the government retains the option to cancel a project, as there are no binding commitments with private contractors at that stage.

However, once the tender is awarded and a contractor is appointed, cancellations are usually not an option, because the government could face legal action.

“The current risks are mainly cost escalations or delays in completion, but reversing the project is not a straightforward process,” he said.

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