Gov’t To Proceed With Two More OPVs for MMEA Despite Contract Termination

PUTRAJAYA, Feb 13 (Bernama) -- The government will proceed with the construction of two more Offshore Patrol Vessels (OPVs) for the Malaysian Maritime Enforcement Agency (MMEA), despite terminating the original contract with the contractor last year.

Home Minister Datuk Seri Saifuddin Nasution Ismail said Home Ministry secretary-general, Datuk Awang Alik Jeman, has been tasked with reviewing all related matters, including appointing a new contractor.

“As we know, MMEA has only received one of the three OPVs, namely the KM Tun Fatimah, which is already in operation to safeguard national waters.

“However, the remaining two OPVs have yet to be delivered. Following the Cabinet’s decision for a mutual termination of the contract, I have set the direction that the project must continue,” he told reporters after officiating the 2024 National Registration Innovation Awards here today.

The government previously terminated its contract with THHE Destini Sdn Bhd (TDSB) after the company failed to complete the two remaining vessels.

In a parliamentary reply last week, Saifuddin Nasution said the contract was officially terminated on Dec 31 last year, with the company being fined more than RM12 million in Liquidated and Ascertained Damages (LAD) for delays in delivering OPV2 and OPV3.

Meanwhile,  Saifuddin Nasution said the government had already spent over RM600 million on the project but received only one completed vessel.

“We have spent a significant amount. This is an issue inherited from the previous administration, (and) we are not here to play the ‘blame game’,” he said.

The contract with THHE Destini was signed in 2017 for the supply of three OPVs at a cost of RM740 million for MMEA, with delivery initially scheduled for 2022.

However, financial difficulties faced by THHE’s parent company and delays caused by the COVID-19 pandemic stalled construction at the Pulau Indah shipyard.

The first vessel, KM Tun Fatimah, which measures 83 metres in length and 13.7 metres in width, can reach speeds of up to 21 knots and is equipped with facilities such as a helicopter landing pad and a detention room.

It was handed over to MMEA last year.

-- BERNAMA