The dredging of the Kuching Port navigational channel should have been completed in 2019.
KUCHING (May 6): The company awarded the RM421.3 million Kuching Port navigational channel capital dredging contract is being penalised for failing to complete the project even after four extensions, the Marine Department revealed.
Responding to a report in The Borneo Post, it said the project, which started on Nov 23, 2017, was scheduled to be completed on Nov 22, 2019, but the company still did not complete the job when the fourth extension ended on Sept 18 last year.
“Until now, the company has failed to complete the work and it has started to be fined (liquidated and ascertained damages) from Sept 19, 2020, until the work is fully completed (the Certificate Practical Completion issued),” it said in a statement.
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The Sarawak Shipping Association (SSA) had questioned the status of the project in The Borneo Post report on April 28 as it said there had been no official update on it since a briefing on Jan 21, 2020.
The Marine Department explained today that the contract awarded to the company was first extended by 36 days until Dec 28, 2019, due to the state government’s delay in giving approval for the work to be carried out round the clock instead of just 12 hours a day.
The second extension of 165 days until June 10, 2020, was due to a shortage of government funds; the third extension until Aug 6 was because of the implementation of the Movement Control Order (MCO), and the final extension was to resolve the sedimentation that resulted from the suspension of works due to the MCO.
“The main factor that caused the delay in the completion of the project within the stipulated time is the high sedimentation rate especially during the flood season or the north-east monsoon period,” the statement said.
It pointed out that the project was ongoing with progress at 97.60 per cent and it was late by 225 days.
SSA had also said last week that the lack of warning for mariners on shallow water or diversion of navigation due to dredging activities, which had resulted in at least three ships being grounded.
It added that the Kuching Port Authority had been collecting a Channel Maintenance Fee at the rate of RM1 per tonne for all cargo going through the port’s terminals since June 1, 2017, although the capital dredging had not been completed.