The Penang government today ordered MMC-Gamuda Joint Venture Sdn Bhd (MMC-Gamuda JV) to stop all work on the Ipoh-Padang Besar electrified double tracking project in the state to prevent floods.
Chief Minister Lim Guan Eng said the state executive council meeting held earlier today also decided that the project should be ceased until new conditions stipulated by the state government were fulfilled.
Speaking to reporters here, he said the state government also asked MMC-Gamuda JV to be prepared to demolish any existing tracks for flood mitigation and be responsible for all compensation costs should floods occur because of the project.
“We hope the MMC-Gamuda JV will be able to provide a written assurance to the state government to fulfill the two newly-stipulated conditions,” he said.
Lim said the stop work order took effect immediately and that MMC-Gamuda JV’s representatives should meet with the state government to discuss about the new conditions.
MMC-Gamuda JV is the main contractor for the electrified double tracking project that spans 329km across four northern states, Perak, Penang, Kedah, and Perlis. It is expected to be completed in early 2013 at a cost of RM12.5 billion.
Prior to this, the company had refuted allegations from various quarters that the project had been the cause of the massive floods that hit Kedah over the past days.