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Penang withdraws stop-work order for railway project

PENANG, 7 Jan 2009: The Penang government has agreed to withdraw an order to stop work on the Ipoh-Padang Besar railway double-track project after MMC Corporation Berhad-Gamuda Berhad (MMC-Gamuda JV) paid RM4 million yesterday.

Chief Minister Lim Guan Eng said although the payment was only a portion of the RM7.4 million which the company was supposed to pay, the state government agreed to withdraw the stop work order so that implementation of the project could progress smoothly.

MMC-Gamuda JV will pay the balance before the Chinese New Year, he told a press conference at his office here today.

He said the payment was for drainage deposit, fine, earth work and planning fees owed by the company.

Last 26 Dec, MMC-Gamuda JV was ordered to temporarily stop work on the 63km railway track project in Penang for failing to submit the design work on the project.

The stop-work order was the second to be issued by the state government to the company. The first was on 22 Oct 2008 following claims that work on the project caused flooding in the area.

MMC-Gamuda JV is the main contractor for the 329 kilometre electrified double track project, costing RM12.485 million and expected to be ready in 2013.

The double track will pass through Perak, Penang, Kedah and Perlis and is expected to benefit the public across the four states in terms of economic contribution in the future. — Bernama

 

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