GEORGE TOWN, Dec 11 — Penang’s Mutiara Line Light Rail Transit (LRT) project will not be cancelled even if there is a change in government, said Economic Affairs Minister Rafizi Ramli.
He said during the planning stage for the project before the government makes any commitment through a tender, the project can still be cancelled.
“But once tender is called and awarded to a private entity, the project can no longer be cancelled,” he said during a Madani Mendengar session with the public at Spice Convention Centre here today.
He said the development of the LRT project in Penang is now ongoing under the current administration and it will likely start before the end of the current administration’s term.
“Once the contract is awarded under the current administration, I don’t feel any government will refuse to honour the contract even if it is a different government the next term,” he said.
He said this is because they will have to pay contractual compensation if they were to cancel the project.
He said all the important matters for the project are now being discussed.
“The government is going through the process so that works on the project can proceed as soon as possible,” he said.
He said once the final decisions have been reached and the contract signed, it would be irreversible.
“The only risks in future would be the possible increase in costs or delay in project,” he added.
