Gamuda-MMC JV Mooted the Idea

According to sources, the proposed KL MRT project will cost RM36bn based on 2010 prices. It will involve tunneling and the construction of 180-200km of rail lines and stations. Of the total value, 30% is budgeted for tunneling works.

Although the Gamuda-MMC JV mooted the idea, it will be bidding for only the tunneling portion worth RM10.8bn due to conflict of interest. Since there are no other Malaysian contractors with tunneling experience, foreign contractors will qualify to bid for the tunneling portion too. The remaining 70% of the total cost will be up for competitive tender. The government has decided that the tender for the entire project will be on 'Swiss Challenge'. The RM36bn cost represents the most expensive mega project in the nation’s history, surpassing the RM20bn development cost for Putrajaya, RM10bn for KLIA. and Gamuda-MMC’s RM12.5bn northern double tracking project.

The rationale for the new MRT system is to bring KL up to par with other developed cities, which will bring life back to the country’s capital city. Most other major cities have at least 40km of rail tracks per million people. KL’s rail infrastructure is woefully inadequate compared to other countries in the region.

Based on existing facilities (LRT and monorail) there are only 15km of tracks per million people. Singapore has hit 40km and has embarked on a plan to expand its MRT lines by an additional 140km at a total cost of $40bn (RM94bn) or RM670m/km.

Gamuda and MMC Corp’s proposal has set an ideal target of 40% of all commuting trips in KL to be done via public transport compared with 18% currently and 50% of the public transit to be handled by rail by 2010 vs. 28% currently. The proposal involves the addition of three new lines, with two cutting across the southeast-northwest axis, which is not served by LRT now. The third is a circle that will cut across all LRT and new MRT lines to make for a truly integrated transport system.

The MRT will have a total capacity of 2m passengers/day and could further expand to 4m. The proposal for the MRT system is still at the preliminary stage and no firm decision has been made. Under the 10MP, a RM20bn facilitation fund will be set up to encourage the private sector to participate in strategic projects.

It is believed that the MRT project will be one of the beneficiaries of this fund. The project could receive up to 10% of costs (RM3.6bn) in the form of a grant from the
government.

Other players are threatening to steal the job from the Gamuda-MMC JV, with a Chinese party supposedly leading the pack. Some parties may even use political connections.

 

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