Lembah Pantai MP Nurul Izzah Anwar is demanding answers as to why upgrading works on the existing Pantai 2 Sewage Treatment Plant are costing a whopping RM1 billion - or twice the initial cost estimate.

Nurul Izzah said two years ago, Indah Water Konsortium, which operates the country's sewerage systems, announced that the project would cost RM500 million.

NONE "What alarms me is the indication that the project will now be awarded at a price tag of RM1 billion. This is 100 percent more than the market estimate," Nurul Izzah ( right ) told a press conference at the PKR headquarters in Petaling Jaya today.

She said she was made to understand that the Energy, Water and Green Technology Ministry is in the final stage of awarding the lucrative project to a contractor, and hoped the federal government would explain the cost to the public.

Nurul Izzah also questioned why the contractor was appointed through direct negotiation, insteading of calling an open tender for the project.

She said Prime Minister Najib Abdul Razak had pledged that his administration would phase out the practice of direct negotiations and the Pantai 2 sewerage upgrading project thus made a mockery of the government's transformation programmes.

No transparency

The cost should be kept low in such projects as it required loans from abroad, or, as in this case, from the Japanese International Cooperation Agency.

"Taking into account the amount of government debts that young Malaysians will inherit, the alleged 100 per cent cost increase is atrocious.

"Therefore, I call upon the minister in charge to clarify whether or not a tender exercise has been conducted to solicit the price for the project.

"I also hope that those with information on the project will come forward to furnish more details so we can put a stop to any potential abuse of public funds," Nurul Izzah said.

Currently, the Pantai 2 plan has been causing uneasiness to the surrounding low-cost flat residents and the upgrading is welcomed.

The upgrade will involve works to introduce a mechanised plant that would be safer and reduce odour emissions.

However, Nurul Izzah said, the project still needed to be scrutinised thoroughly to ensure that the people get the best value for their money and that the government is more transparent on the project.

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