He said that only a three-kilometre stretch of the highway has not been completed due to some technical problem arising from the frequent collapse of the hillside which was cut through for the project. 

"The contractors are doing structures to stop it. It's very difficult because of the strenuous cut ... otherwise with only three kilometres, we would be able to reach Cameron Highlands," he told reporters after presenting Chinese New Year goodies to old folk's homes and schoolchildren in his parliamentary constituency here today. 

Samy Vellu also confirmed that MTD Construction Sdn Bhd, contractor for the package, would spend about RM20 million to RM25 million for the additional cost involved in remedial works at the problematic section. 

It is part of the second East-Coast Highway linking Perak on the west coast to Terengganu on the east coast and planned under eight packages. Package one, stretching 21 kilometres from Simpang Pulai near Ipoh to Pos Selim, has been completed whereas the packages 2, 3, 4 and 7 are currently under construction. 

The RM282 million construction works from Pos Selim to Ladang Blue Valley at Cameron Highlands, stretching over 35.5 kilometres, started in early 1997 and is scheduled to be completed in 2000. 

However, the geological complexity of the area has delayed the project. 

Once completed, it will take about 70 minutes to travel to Cameron Highlands from Simpang Pulai on a two-lane single carriageway with a design speed of 50kph. 

Samy Vellu said that it would be a wonderful journey cruising the highway as there are breathtaking scenery, waterfalls and beautiful birds to enjoy. 

He also said that the ministry has terminated the contract for Package 3 (a), stretching from Lojing to KM10 outside the boundary of Pahang and Kelantan, given to Pretech Sdn Bhd last November.

He said that the company could not continue with the project for six to seven months because their tendered price was very low. 

"The actual cost estimated by JKR (Public Works Department) was RM110 million but they tendered for only RM80 million ... naturally they can't go ahead with the project," he said. 

Samy Vellu said that a new contractor has been identified by the Problematic Projects Committee comprising representatives from his ministry, Finance Ministry and the Economic Planning Unit in the Prime Minister's Department. 

"We have appealed to the Finance Ministry to allow the new contractor to go ahead with the project but the old one (contractor) came back and is fighting for the project ... so the problem is not solved yet," he added.