Prime Minister Abdullah Ahmad Badawi said the government has no plans to review the award of a multi-billion dollar rail project to local contractors despite mounting criticism.

"There is no proposal to have a relook at this package. The letter of award has already been given to Gamuda (and MMC). We are at the stage of discussing with them," Abdullah told reporters in parliament yesterday.

The project was initially promised to the Indian Railway Construction Co (Ircon) and China Railway under a government-to-government initiative, which included a barter deal to increase exports of palmoil to India and China.

However, it was announced last month that the RM14.5 billion double-tracking rail contract had gone to local infrastructure group Gamuda Bhd and Malaysia Mining Corp Bhd (MMC).

Abdullah, who is finance minister said the cabinet would scrutinize the final agreement before approving the contract.

"There is already an instruction by the cabinet that the agreement should first submitted to the cabinet for scrutiny and then the cabinet will make a decision," he said.

Sub-contracting jobs

Abdullah said this when asked to comment on criticism against the government for awarding Gamuda and MMC the contract without an open tender.

Lim Kit Siang, chairman of the opposition DAP had urged the government to cancel the award to Gamuda and MMC and reopen bidding for the rail project.

"DAP proposes that cabinet should cancel award to Gamuda and MMC and reopen bidding in the interest of fair play," he said in a statement.

Malaysia said bids by the Indian and Chinese contractors, reduced from an initial RM42 billion to RM24 billion, were too high.

Ircon and China Railway were offered sub-contracting jobs by the Gamuda-MMC consortium but both groups have turned down the offer.

The double-tracking is one of the country's largest infrastructure projects, involving the laying and electrification of 636 kilometers of track straddling the length of peninsula Malaysia and forming part of a US$30 billion trans-Asia rail link.- AFP