PRESENT POINT POWER

Datuk Seri Abdullah Ahmad Badawi announced
880 new projects worth RM15 Billon to be tendered out under 9MP

PM Abdullah announced in a statement 880 new projects worth RM15 Billon to be tendered out under 9MP. Out of the total 455 are government projects while the rest is from private sector initiatives. This is only an initial list and additional list would be announced from time to time.

Details from Bernama, July 18, 2006 18:39 PM

KUALA LUMPUR, July 18 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi on Tuesday announced that 880 new development projects worth RM15 billion under the Ninth Malaysia Plan would be tendered out soon.

The initial list of projects include the construction of 450 primary and secondary schools, roads, bridges, projects to increase water supply and the building of the integrated transportation terminal at Gombak in Selangor, he said in a statement issued from the Finance Ministry at Putrajaya.

Abdullah, who is also Finance Minister, said the road project is from Padang Besar to Kayu Hitam, the bridge would be between Semporna and Pulau Bum Bum in Sabah and the water project in Terengganu.

He said the government was aggressively pursuing programs and projects under the 9MP just a month after the plan was approved by Parliament.

While the list of projects announced was the initial list, he said the government would announce additional lists from time to time, after having obtained the required information from the respective ministries.

He said all ministries and agencies together with the Works Ministry have been directed to act quickly to come out with the project design and tender document so that projects could be implemented as soon as possible.

At the same time, "I want the entire government machinery to ensure that all other development projects approved under the 9MP are implemented quickly so that the people can benefit as desired by the government," said Abdullah.

The details of the tenders would be advertised in the local papers as well as on the government's website (www.gov.my), Works Ministry's website (www.kkr.gov.my) and the website of the Construction Industry Development Board Malaysia or CIDB (www.cidb.gov.my).

The list of projects can be obtained from the website of the Prime Minister's Office (www.pmo.gov.my), Ministry of Finance (www.treasury.gov.my) and Economic Planning Unit (www.epu.jpm.my).

He said a Programme and Project Management (PPM) methodology would be used by the Implementation Coordination Unit and the National Implementation Directorate to monitor the projects concerned.

The main feature of the PPM methodology would incorporate the best practices and process for the planning and implementation of these projects.

This includes ensuring that projects would be completed within reasonable costs and a fixed timeframe.

PPM would also develop a proven method to assess the effects and outcome accurately to ensure the programmes and projects implemented achieve their objectives.

"As the chairman of the National Implementation Action Body, I will monitor the implementation of these projects," the Prime Minister said.

And from Bloomberg
Malaysia to Implement 15 Billion Ringgit of Projects(Update 2)

Updated : 18-07-2006 Media Story By : Soraya Permatasari and Stephanie Phang

July 18 (Bloomberg) -- Malaysia plans to start implementing projects valued at about 15 billion ringgit ($4.1 billion) as it boosts government spending under its five-year development plan.

The 880 projects, which were announced by Prime Minister Abdullah Ahmad Badawi on his Web site today, include building 450 schools, as well as roads and bridges. The government will also invite bids for water supply projects in Terengganu and an integrated transportation terminal in Selangor.

Prime Minister Abdullah is aiming to bolster the economy with a 200 billion ringgit development budget for the 2006 to 2010 period announced in March as record oil prices threaten global demand for Malaysia's exports this year.
The nation in March announced an 18 percent increase in public development
spending in the current five-year plan.

Comments by Lee Heng Guie, an economist at CIMB Securities Sdn

``There are signs that external demand will be moderating, so you have to take control on the internal driver of growth,'' said Lee Heng Guie, an economist at CIMB Securities Sdn. ``One way is looking at the public spending side, that you hope will spill over into the private investment, construction, services and manufacturing.'' On Time
Abdullah will chair a national implementation body to monitor the projects, to ensure they are completed on time and at appropriate costs, he said. The prime minister has also instructed the relevant government agencies to speed up the design and tendering of the projects.

``I want the entire government machinery to ensure all the other development projects under the Ninth Malaysia Plan will be implemented quickly so the people will benefit from them,'' he said.

The government will announce more projects from time to time, Abdullah said in the statement. The tender for the projects announced today will be carried out in ``the short term,'' he said.

The relatively small size of the projects announced today, averaging 17 million ringgit each, will allow them to be implemented quickly and benefit a large segment of the economy, Lee said.

The Baku dam ready in 4 years time?

Since taking over as prime minister in 2003, Abdullah has moved away from large scale infrastructure projects such as the 9 billion ringgit Bakun hydroelectric dam started by the previous administration in favor of smaller projects that he says are aimed at enhancing the quality of life for Malaysians.

Cancellations

In December 2003, less than two months after Abdullah took over as prime minister, he postponed a $3.8 billion rail project awarded by predecessor Mahathir Mohamad's government to Malaysia Mining Corp. and Gamuda Bhd., saying the country needed to prioritize projects and rein in its budget deficit.

``Given that these are smaller projects, they will have a higher multiplier effect,'' Lee said. ``Given that external demand is slowing, government induced spending will be the key driver of growth next year.''
Lee expects Malaysia's economy to expand 5.6 percent next year, from 5.3 percent in 2006. The government may announce bigger projects in its 2007 budget announcement in September, he said, estimating a government spending budget of about 40 billion ringgit for next year.

and from Malaysia Business news
Malaysia unveils state projects worth US$4.1 bln
Updated : 18-07-2006 Media : Reuters

KUALA LUMPUR, July 18 (Reuters) - Malaysia on Tuesday unveiled $4.1 billion worth of state projects to help ginger up its economy and defuse criticism that a prime ministerial plan to develop the country was big on concept but short of details.

The government sought tenders for 880 projects, mostly schools and roads, that form the first major tranche of projects envisaged in a $54 billion, five-year development plan that Prime Minister Abdullah Ahmad Badawi launched in April.

"The government will announce the lists of other projects from time to time," Abdullah said in a statement published on the Website of his office, which listed projects said to also include water supply networks and a transport terminal.

Abdullah, in power since late 2003, has drawn stinging criticism from his predecessor, Mahathir Mohamad, for scrapping major state projects, including a bridge to neighbouring Singapore, initiated by Mahathir's administration.

Some businessmen have complained that state projects were hard to come by in Abdullah's administration, and Tuesday's plans could help remedy their woes. Mahathir ruled for 22 years, making him Malaysia's longest-serving premier.
He handpicked his successor, and still commands support within the ruling party, the United Malays National Organisation (UMNO), which Abdullah now heads.

Shares of firms considered likely to snare some of the work on offer have surged in the months since the plan was announced, although Abdullah gave little detail on specific projects at the time.

Attention has focused on construction companies such as state-controlled UEM World (UEMW.KL: Quote, Profile, Research), whose share price has almost doubled since mid-March to stand at 1.68 ringgit by close of trade on Tuesday.

Investors are also keen on MMC Corp (MMCB.KL: Quote, Profile, Research), which has risen 34 percent since mid-March, ending Tuesday at 3.22 ringgit and (UEMU.KL: Quote, Profile, Research), UEM Buildersup 40 percent since the middle of March, and standing at 1.23 ringgit on Tuesday.