The proposal to build a State Administrative Centre is not new as it has been planned since the Berjaya Government but was not implemented as priority was given to other development projects, said Chief Minister Datuk Seri Musa Aman.
He told the State Assembly sitting yesterday that there is a pressing need to build a State Administrative Centre in line with the expanding role and functions of the state’s administration in support of national and state development policies and strategies.
More office space is needed to meet the needs of the increasing number of staff, he said, adding that many of the offices under the Chief Minister’s Department and Finance Ministry are now housed in different buildings.
“Some even have to rent offices in buildings such as Menara Tun Mustapha, Wisma Innoprise and Wisma SEDIA.
“Logistically, having these offices in separate locations is not only troublesome to the public, it also makes it difficult for the government officers to deal with each other,” said Musa, who is also Finance Minister.
“Also, another factor that has to be taken into consideration is the age of the existing buildings such as Wisma Kewangan. The damages to these old buildings are too costly to repair,” he said.
Musa said the State Administrative Centre project will be financed with funds from several sources, such as government allocation and contributions from government-linked companies (GLCs).
Sawit Kinabalu has allocated RM100 million while Warisan Harta will contribute RM50 million. Other than that, the dividend payments from high performing statutory bodies and government agencies are expected to be not less than RM100 million, and all these will go towards the realization of the building, Musa said.
The construction of the centre is expected to take 30 months, so the budget for it will be spread over in three financial years, he said in reply to Sri Tanjong assemblyman Jimmy Wong.
Jimmy had asked the Chief Minister to explain the need for the Government to construct the RM388 million State Administrative Centre when it has the Wisma Innoprise and Menara Tun Mustapha to cater to its needs.
He wanted to know if the RM388 million included furnishing in the building and if the contract awarded to Bina Puri Berhad was through an open tender or negotiated tender.
Musa said it is not economical for government companies like Sawit Kinabalu Sdn Bhd and Warisan Harta (Sabah) Sdn Bhd to have their own buildings at other locations.
Placed under one roof, all the departments, agencies, GLCs and companies will be able to share the facilities provided, he said, adding that this will also allow the public easier access when they have any dealings with the Chief Minister’s Department and Finance Ministry as well as the agencies under them.
As the size and construction costs are quite substantial, the project will be implemented through selective tender as this will ensure that the project is done with quality, completed on schedule and ‘value for money’ for the Government.
Ten contractors who had undergone the pre-qualification process took part in the tender for the project, Musa said, adding that all the contractors have excellent track records in implementing and completing mega projects in Sabah.
Therefore, the appointment of Bina Puri Sdn Bhd as the contractor for the project is based on the technical and financial evaluation done by the Public Works Department (PWD) which is the Technical Department, he explained.
Its recommendation was acknowledged by the State Tender Board and approved by the State Cabinet, and even though Bina Puri is a Kuala Lumpur-based company, it had successfully implemented and completed several mega projects in Sabah, he said.
Bina Puri’s tender price of RM388.7 million was the lowest compared to what was set by the other contractors who took part in the tender, he added.
According to Musa, the cost of RM388.7 million will encompass all works on the main building, exterior works as well as main electrical and mechanical works.
As a cost saving measure, furniture and office equipment which are still in good condition will be reused.
New office equipment will only be purchased if there is a need and the costs will be minimized, he said.