Bns Sought Additional Rm1 4bil For Lcs Project
BNS requested more funds in view of changes to the project specifications and schedule.PETALING JAYA: Boustead Naval Shipyard Sdn Bhd (BNS) sought an additional RM1.416 billion for the littoral combat ship (LCS) project.
According to the newly declassified governance, procurement and finance investigation committee’s report, BNS had on July 16, 2019, submitted a letter to the defence ministry requesting additional funds to complete the construction of all six frigates.
BNS had requested an additional RM1.416 billion on top of the total RM9.128 billion initially quoted for the entire project.
It said the additional funds were needed in view of changes to the project specifications and schedule, explaining that direct costs were estimated to be RM58 million while indirect costs could potentially amount to RM1.358 billion, according to the report.
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This was an increase from a previous cost estimation two months earlier.
In a quotation to the ministry dated May 17, 2019, BNS had estimated that a further RM693.57 million to RM1.375 billion would be needed to cover additional costs to complete the project.
The LCS project for the navy has come under heavy scrutiny over its cost and delays in delivery.
The first ship, Maharaja Lela, was launched in 2017 for delivery in 2019, with the rest to be delivered in stages. However, none have been completed or delivered although Putrajaya has spent RM6.08 billion on the project, according to Parliament’s Public Accounts Committee.
Earlier today, Putrajaya declassified the governance, procurement and finance investigation committee’s report on the project. However, several parts of the document were redacted. - FMT
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