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Govt Negotiating MRT Project Fees

 
   

PETALING JAYA: The Government is in the midst of negotiating with mass rapid transit (MRT) project delivery partner (PDP) MMC-Gamuda JV Sdn Bhd on the fees for managing the project, which would have to be delivered within an agreed timeframe and cost.

Prime Minister Datuk Seri Najib Razak had on Saturday said that work on the 65km Sg Buloh-Kajang line would start in July next tear and was expected to be completed in five or six years. “The fees are being negotiated,” Minister in the Prime Minister's Department Senator Datuk Seri Idris Jala said at a briefing in Menara Star yesterday.

The project, worth an estimated RM36bil for the civil works alone and not inclusive of rolling stock (trains) and land acquisition, would be the country's largest-ever infrastructure project under the Economic Transformation Programme.


Industry observers believe that MMC-Gamuda, with their expertise in tunneling works acquired in the SMART tunnel and the Kaoshiung MRT projects, was likely to get the tunnelling parcel of the project worth an estimated RM13bil to RM14bil. However, Najib said while the Government felt that the partnership should be allowed to tender for the tunnelling works as it was the only local construction company with such experience, MMC-Gamuda's associates and subsidiaries would not be allowed to tender for any of the other civil work parcels of the project.

Approximately 20% of the 65km line, especially in areas where the line passes through Kuala Lumpur's central business district (CBD), would be underground. Idris said the result of the tender for the project would be made known “soon” but declined to comment on anything more specific.

AmResearch Sdn Bhd analyst Mak Hoy Ken said in a Dec 20 report that MMC-Gamuda would likely still have the first right of refusal to match any competing bids under a “Swiss Challenge”, especially if the Government opened up the tunnelling package to foreign parties. An OSK Research report said the partnership stood a strong chance in bagging the tunnelling works due to track record but might relinquish the PDP role for this aspect of the project to avoid any conflict of interest.

Idris said the Government had decided to use the PDP route in managing the MRT project when confronted with three options the others are turnkey and project management consultant (PMC) as the PDP route meant the project would be able to start almost immediately. “The Government's view is that if the MRT project is not sorted out soon, then there'll be problems as by 2020 Kuala Lumpur will be totally gridlocked,” he pointed out.

Idris said the turnkey option was not flexible and might prove costly in the long run while the PMC option meant waiting at least five years before the project could start as local players built up their competencies. He said the PDP option was being used in the London crossrail, London 2012 Olympics, the New Doha International Airport, and the Korea highspeed rail projects.

Idris said the other MRT lines to Klang and circling the CBD were still under study. “As we see it today, the line to Klang is important because the congestion is very heavy at peak hours,” Idris added.

 

Disclaimer: Such news and article is a verbatim copy from other websites and is solely for the purpose of providing general information about the proposed KL MRT, it may be changed by the Project Owner of the KL MRT at any time and must not be relied upon in connection with any investment decision. The website owner should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
 

 
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