Malaysia
Govt saved around RM1.8b by switching to open tender for flood mitigation programme, says Nik Nazmi
Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad speaks at the launch of the Malaysia Energy Transition Outlook report at M Resort and Hotel in Kuala Lumpur March 9, 2023. — Picture by Firdaus Latif

KUALA LUMPUR, March 9 — The government has saved an estimated RM1.8 billion from the flood mitigation programme that was approved by the previous administration, Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said.

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The minister said savings were made when the RM15 billion flood mitigation programme was put through an open tender process.

"All RM15 billion flood mitigation programmes approved by the previous administration will be implemented via open tender.

"Opting for the [open tender], the result is that it is capable of making RM1.8 billion in savings.

"Savings are done through reorganising projects based on priorities including job scope and offering indicative prices to cap offers from out of price range bidders,” Nik Nazmi told the Parliament today during his winding-up speech on the Budget 2023.

He was responding to PAS’ Kubang Kerian MP Datuk Seri Tuan Ibrahim Tuan Man who asked how was possible for the government to save RM2 billion by halting six flood mitigation projects which were approved by the previous administration when none of it has yet to start.

Nik Nazmi added that the implementation of the flood mitigation programme will be expedited and will begin no later than June 2023 after the tender process is finalised.

On Monday, Prime Minister Datuk Seri Anwar Ibrahim said there was no discrimination intended when the government halted flood mitigation projects announced by the previous administration led by Datuk Seri Ismail Sabri Yaakob.

He said the projects were halted as the costs were too high and the projects were done via direct negotiations.

Prior to the 15th general election, now-economy minister Rafizi Ramli had accused former environment and water minister Tuan Ibrahim’s involvement in the award of a RM2 billion flood mitigation project to an Umno-linked company. No further report was lodged over the project with the Malaysian Anti-Corruption Commission.

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