In a statement, Finance Minister Lim Guan Eng said these projects were offered through direct negotiations and tenders by the BN administration at RM13,932 million.

Now, after renegotiations, these projects cost RM13,126 million and will proceed.

“The renegotiated prices were part of the Pakatan Harapan government’s efforts to reduce fiscal stress.

“The projects are all now under the purview of the respective ministries and no longer involve the finance ministry,” said Lim.

However, Lim said the 121 projects exclude mega projects such as the LRT3 which cost RM31.65 billion and MRT2 at RM39.35 billion.

Both of these projects were later reduced in cost to RM16.63 billion and RM30.53 billion respectively.

Lim said open tenders will replace the awarding of projects through direct negotiations or tender, with the exception of emergencies and certain projects requiring certain expertise.

“For instance, the contract offered to a Grade G1 contractor (previously known as Class F contractor) is still the same, but carried out as open competition among Grade G1 contractors,” he said.

Lim claimed in the example given above, the BN administration had practised direct negotiations, with the approval of local politicians.

On June 29, 2018, Lim announced that certain measures would be taken to improve the administration of government projects and finances.

Among the steps taken was a review of projects which were tendered and directly negotiated by the previous government.