Kelantan will proceed with Lebuhraya Rakyat project

The Kelantan government will proceed with the construction of the 'Lebuhraya Rakyat' (highway) linking Kota Baharu and Kuala Krai despite the legal action by a construction company against two of its company subsidiaries.

Works, Infrastructure, Utilities and Information Technology Committee chairman Datuk Hanifa Ahmad said the state government had already called for a tender on Jan 15 and an assessment to select the contractor would be made within three months.

"The tender was called by the state government; the plaintiff did not sue the government, it sued Baldah Toyyibah (Prasarana) Kelantan Sdn Bhd (Baldah) and Perbadanan Menteri Besar Kelantan (PMBK)," he told reporters after accompanying Energy, Green Technology and Water deputy minister Datuk Seri Mahadzir Khalid to the Pintu Geng water treatment plant here, Monday.

Hanifa was asked to comment on Dae Hanguru Infra Sdn Bhd (DHI)'s RM230 million compensation suit against Baldah and PMBK for allegedly reneging on a 'letter of intent' in regard to the construction of the highway.