'Threshold line' on LCS project has already been established, says Mohamad

KUALA LUMPUR: A 'threshold line' to determine the success or failure of the Littoral Combat Ship (LCS) project has already been established, the Dewan Rakyat was told today.

Defence Minister Datuk Seri Mohamad Hasan said through the sixth additional contract signed with Boustead Naval Shipyard Sdn Bhd (BNS) in May this year, several checkpoints were included and must be met to determine the rate of the project.

"The checkpoints must be complied with and fulfilled by BNS throughout the contract period.

"Following this, these checkpoints serve as the threshold and will be monitored by the government, with clear guidelines that the government has the right to terminate (the project).

"Among examples of the checkpoints include the completion design by BNS," he said during his winding-up session for the 12th Malaysian Plan (12MP) mid-term review in Dewan Rakyat today.

Mohamad said this in response to a proposition made by Datuk Seri Ikmal Hisham Abdul Aziz (Perikatan Nasional-Tanah Merah) during a debate session in the mid-term review of the 12MP last week.

Ikmal, who was also the former deputy defence minister said the government must establish a 'threshold line' over the project to indicate the project's failure as their last resolution.

He also said while LCS is the largest project with the most additional agreements in history, the future of the project was dim, adding that the project has not shown any convincing developments.

At the same time, Mohamad said the completion design of the ship has reached 94 per cent, while the remaining six per cent is being completed by BNS.

"The remaining six per cent only involves the non-critical zone which is the area that is above the water surface.

"(And) for your information, the negotiations with the design authority, Naval Group France for the detailed design contract as well as Naval Group Malaysia on technical support and assistance has also been finalised."

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