SHAH ALAM: The Defence Ministry has signed the fifth additional (supplementary) contract for the LCS with Boustead Naval Shipyard (BNS) to allow the resumption of the project as announced previously. As usual there was no further details on the additional contract nor when the project will resume.
The additional contract was signed at Jalan Padang Tembak on May 31, according to a statement issued by the ministry. Defence Ministry secretary general DS Muez Abd Aziz and LTAT CEO Ahmad Nazim Abd Rahman.
31 Mei 2022, Kuala Lumpur – Ketua Setiausaha Kementerian Pertahanan, YBhg. Dato’ Sri Muez Abd Aziz mewakili Kementerian Pertahanan telah menandatangani kontrak tambahan ke 5 bagi Kontrak Perolehan Littoral Combat Ship (LCS) antara Kementerian Pertahanan Malaysia dan Boustead Naval Shipyard Sdn Bhd (BNSSB).
Dengan termeterainya kontrak ini, akan membolehkan BNSSB memulakan fasa mobilisasi selaras dengan keputusan Jemaah Menteri untuk meneruskan projek LCS.
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I assumed at least the additional contract was to replace the earlier ones especially in regard to the the new deadline for the delivery of the ships, with likely the first in 2025 (as announced before) with the rest of them due a year after the other. It may not include the variation orders (VO) that were due before May 2018. The last supplementary contract was for the first ship to be delivered in 2019, instead of the original deadline of 2017
This was the reason the project had to be stopped in November 2019, as BNS had run out of money. It ran out of money as it had missed the deadline for the delivery of the first ship and the government cannot pay the shipyard any further. Apart from the money, much of the work cannot proceed further as the VO had not been signed.
*updated to clarify that this was fifth additional contract of the LCS as mentioned in the comments section. I apologize for the mistake.
— Malaysian Defence