Will Health Minister Dzulkefly terminate Zecon Berhad’s Petra Jaya contract?

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Health Minister Proposes Termination of Petra Jaya Hospital Contract

Health Minister Dr Dzulkefly Ahmad has proposed the termination of Zecon Berhad's contract for the construction of Petra Jaya Hospital, citing a lack of confidence in the project's timely completion. The proposal will be forwarded to the Cabinet and presented to the Ministry of Finance for consensus. If an agreement is reached, the Public Works Department is slated to take over the project.
Project Delays and Current Status

The Petra Jaya Hospital project, valued at RM495 million, commenced in May 2013 with an original completion deadline of November 2016. However, the project has experienced significant delays, leading the contractor to request an extension until December of the current year. A recent site inspection revealed that the construction had only reached 34.5 per cent completion, with a substantial RM350 million of the project value remaining.
Rationale for Proposed Termination

Dr Dzulkefly expressed his lack of confidence in Zecon Berhad's ability to meet the project's stipulated timeframe, noting that many essential work structures are still incomplete. The minister highlighted the considerable remaining project value as a factor necessitating a firm and thorough resolution to the ongoing issues.
Next Steps for Project Handover

Following the proposed termination, Dr Dzulkefly will submit the proposal to the Cabinet for deliberation. Subsequently, it will be presented to the Ministry of Finance to achieve a consensus on how to proceed. Should this consensus be secured, the responsibility for completing the Petra Jaya Hospital will be transferred to the Public Works Department.

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Will Health Minister Dzulkefly terminate Zecon Berhad’s Petra Jaya contract?

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