PARLIAMENT Putrajaya is partly to blame for the extract cost of RM800 milion for the construction of the East Coast Highway 2, which was largely due to delays caused by the contractors, the Public Accounts Committee (PAC) said.

Putrajaya should pick qualified contractors in stable financial position when awarding government highway contracts in future, PAC said in its report on East Coast Highway 2 that was tabled in the Dewan Rakyat today.

PAC also pointed out that the staggering higher construction cost was partly due to the government's decision to change the road into a paid highway.

The matter came into the limelight after the 2012 Auditor-General's Report pointed out that the highway cost had ballooned to RM2.9 billion.

"The government needs to choose contractors that are really qualified, from the aspect of experience, knowledge, skill, as well as stable financial position, for future highway contracts," PAC said.

"PAC is of the view that the increment in cost is due to the hike in construction costs in 2008, as well as an increase and amendment in the scope of the work," said the report.

Change in scope of work

The government's change of mind, to make it a paid highway, had led to the change in scope of work in the highway construction, which included toll booths, rest and relaxation stations, layby and toll collection systems, the report said.

The report also noted that the delay of construction was partly due to delay in re-tender, something beyond the control of the Works Ministry.

The highway was supposed to open to traffic in 2009, but was only done this year.

On this, PAC criticised the government for its failure in proper planning at the initial stage.

"The government needs to determine the highway construction method from the planning stage, to decide whether it should be a tolled highway or not," the report said.

The RM800 million cost overrun , which was initially pointed out in the Auditor-General's Report, was later revised to RM662.3 million, while the actual cost of the highway was RM2.75 billion, according to the PAC report.

The breakdown of extra costs: contract re-tender (RM330.3 million), seven toll plazas, two rest and relaxation outlets and a layby (RM225.3 million), design, supervision and utility (RM45.7 million), toll collection and traffic control system (RM45 million) and land acquisition (RM16 million).