Deputy works minister Ahmad Maslan said the project had only progressed 23% so far.

Ahmad said it was necessary to terminate the contract, given the project’s crucial importance to healthcare staff in Labuan.

“The RM24 million contract, awarded in 2022, will now undergo retendering. The anticipated increase in project cost will be borne by the Economic Planning Unit,” he said during a visit to Labuan Hospital today.

The project was originally slated for completion on June 29, 2023.

Situated in Membedai, Jalan Tanjung Teras, next to the Membedai health clinic and Labuan health department headquarters, the Labuan healthcare staff quarters project involved the construction of four class-D semi-detached houses, a five-storey apartment block with 18 units and another five-storey block with 16 units.

Meanwhile, Ahmad said a new contractor had been appointed for the RM26.8 million Bebuloh health clinic project, initiated in November 2019.

The project is now targeted for completion by January 2027.

The health clinic will have pharmaceutical and dental services, a sick bay, outpatient treatment services, and maternal and paediatric healthcare services.