Answer for Oral Question PL057
QUESTION
Yang Berhormat Awang Lau How Teck
YANG BERHORMAT AWANG LAU HOW TECK asks the MINISTER OF DEVELOPMENT to state how the ministry integrates the life cycle cost of public assets, including long-term maintenance and disposal, into the planning of new projects? Does the current approach result in hidden costs that will burden future public expenditure?
ANSWER
Yang Berhormat Menteri Pembangunan
In any new project plan, the ministry does indeed take into account the cost over the asset's entire life cycle. This includes consideration of operating and maintenance costs, including repairs as well as asset replacement, with a focus on long-term maintenance plans through term contracts. This approach is taken to ensure that government assets remain in good condition and that more serious damage can be avoided, which, if not addressed early, could result in higher repair costs in the future.
Examples include 18 term contracts for the maintenance and repair of roads, term contracts for the operation and maintenance works of air-conditioning systems in the Brunei/Muara and Tutong areas, as well as maintenance works for chemical handling facilities at water treatment plants.
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