RM9 billion LCS construction cost to remain the same, says Tok Mat
NURUL HUDA HUSAIN DIANA AZIS20 Feb 2023 01:03pm
Defence Minister Datuk Seri Mohamad Hasan
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Defence Minister Datuk Seri Mohamad Hasan said the decision was made after considering the increase in costs which includes the increasing prices of equipment.
"There is no reduction in the approved ceiling (LCS construction cost), the amount remains the same (RM9 billion) due to increase in cost which are the price of equipment.
"I have seen all the equipment bought in the warehouse and even the engine of the first LCS ship has been placed in its body parts.
"It is going to be installed in a specific way now," he said in Dewan Rakyat here on Monday.
He said this when answering additional question from Nordin Ahmad Ismail (PN-Lumut) about the actual total cost of LCS construction after the government announced the number of vessels were reduced by one.
Mohamad or Tok Mat, who is also Rembau MP added the government was committed to continue the project.
"I would like to express my stance to proceed with the LCS procurement in order to strengthen the navy's operational capability in preserving the country's sovereignty.
"It is also in line with the national defence objectives stated in the Defence White Paper," he said.
Last January, the Navy chief Admiral Datuk Abdul Rahman Ayub announced that the procurement of the first batch of the LCS had been reduced from six to five vessels after they re-applied.
He said the decision was made when the government decided to continue the project.
Previously, the media reported that the Public Accounts Committee (PAC) revealed that the government paid RM6.083 billion for five LCS to Boustead Naval Shipyard Sdn Bhd (BNS) in the direct negotiation project, but no vessels were received so far.
The report released on August 4 also listed nine conclusions that caused the failure of the construction project of six LCS for TLDM woth RM9 billion.
