Malaysia
Petra explains Sungai Golok project cost rise to RM601m in response to A-G report
The Ministry of Energy Transition and Water Transformation (Petra) said the adjustments included upgrading the Security and Development (KESBAN) road to federal road standards, as well as modifications to the spillway structures, bridge construction and pump house design. — Bernama pic

PUTRAJAYA, Oct 6 — The Sungai Golok Integrated River Basin (PLSB) project in Kelantan saw its contract value increase from RM198.02 million to RM601.20 million following adjustments to the project scope based on technical requirements and conditions during implementation.

The Ministry of Energy Transition and Water Transformation (Petra) said the adjustments included upgrading the Security and Development (KESBAN) road to federal road standards, as well as modifications to the spillway structures, bridge construction and pump house design.

“Adjustments to the scope and design were made to ensure the infrastructure meets functional, safety and long-term durability requirements, while taking into account risks associated with extreme weather and climate change.

“Project implementation was also affected by on-site technical constraints, including utility relocation, land acquisition and coordination of construction drawings, which were crucial to ensuring the continued protection of residents, property and public infrastructure in flood-prone areas,” Petra said in a statement today.

The statement was issued in response to findings in the Auditor General’s Report (LKAN) 2/2026, which highlighted several weaknesses in the implementation of the PLSB project.

The ministry said that it and the Department of Irrigation and Drainage (DID) took the recommendations made by LKAN concerning the PLSB project and the Coastal Restoration Programme seriously and were committed to addressing the matters raised.

“Petra and DID regard the LKAN findings as an important review mechanism to ensure government projects are implemented effectively and transparently, while identifying areas for improvement and addressing the issues raised to strengthen public service management and delivery,” it said.

Petra said follow-up action had been taken by DID to address issues concerning consultant management in the PLSB project, including lodging a formal complaint with the Board of Engineers Malaysia and streamlining consultant service management and contract terms to clarify responsibilities and accountability.

Meanwhile, the ministry said the Environmental Impact Assessment (EIA) approval process for the Coastal Erosion Control Project in Kuala Nerus, Terengganu, had been completed, while capacity for beach nourishment works had been increased to expedite the implementation of coastal protection measures.

“For the projects in Pasir Hitam, Langkawi, Kedah and Pantai Marang, Terengganu, the preparation of the Final Account and Final Payment is being expedited so that the calculation and collection of Liquidated and Ascertained Damages can be finalised,” Petra said.

As part of comprehensive improvement measures, Petra said DID had implemented DID Circular Letter No. 6/2026 on the Standard Operating Procedure for Project Construction Management (Conventional), effective August 14, to strengthen site readiness, land and utility management, technical design, progress monitoring and contract management.

The statement said Petra and DID would continue to ensure that action is taken on all audit recommendations and that project management and public allocations are handled prudently, with emphasis on implementation quality and benefits to the public.

It said Petra remained committed to strengthening the governance of flood mitigation and coastal restoration projects to ensure more effective implementation and enhance protection and the well-being of the people, particularly in addressing flood and coastal erosion risks. — Bernama 

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