The developer had also wrongly estimated the cost of land compensation, which it initially quoted at RM375.6 million but the government ended up paying RM740.6 million, said the Auditor-General’s 2010 report.
“The difference is 102.9 per cent. The difference is because the Malaysian Highway Authority did not do their part in correctly estimating the cost of land compensation, which caused the government to pay double the amount,” said the report.
[Pic – The Senai-Desaru highway includes a 4km bridge spanning Sungai Johor. It is part of the 27km stretch from Cahaya Baru to Penawar.]
The audit also found that the highway developer did not complete its work on time because of flaws at planning stages with unrealistic traffic studies.
The highway connects Johor Baru to main tourists areas, and connects Johor Port in Pasir Gudang to the Senai International Airport.
It is also expected to reduce traffic congestion on the Pasir Gudang expressway and speed up development on the east coast of Johor.
The project was worth RM1.37 billion and the contract was signed seven years ago. It was divided into three packages. The first two — building a two lane 23km carriageway connecting the Malaysia-Singapore second link to Ulu Tiram and the building of a 27km road from Cahaya Baru to Penawar — are completed.
The third phase was supposed to be completed in July 2008 but was ready only last year after three extensions.
The contractor claimed to have been dragged down by world economic problems, increases in the prices of materials, unpredictable weather and the delay in land compensation issues.
The report also added that river protection was needed against five different rivers along the highway.
It also wanted MHA to carry out proper traffic studies before approving a highway project.
MHA said the land compensation was planned well at the initial stages but because of objection from land owners the project was delayed.
“Because of that, the government had to pay more in backdated land compensation payments.”-NST
