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MRT Financing, Project Manager’s Fees Not Finalized Yet

 
   

KUALA LUMPUR, April 8 — Putrajaya has yet to finalize the financing and project manager’s fees for the Klang Valley Mass Rapid Transit (MRT) although planning has started for initial civil engineering works to begin in November, said the regulator.

Land Public Transport Commission (SPAD) chief executive officer Mohd Nur Kamal said only a Letter of Award (LoA) has been issued to the MMC-Gamuda joint-venture as the Project Delivery Partner (PDP) but the fees has yet to be settled.

“We are working hard to finalize it and it will made public before the groundbreaking in July,” he told a special briefing to journalists yesterday. The multi-billion ringgit MRT, which was initially estimated at RM36 billion for three lines, has come under fire for scant details, but Mohd Nur said information will be given when available.


He announced that the July groundbreaking is only for the depot site near to Sungai Buloh Station and the start and end of the underground portion in Jalan Semantan Station and Jalan Cochrane Station, adding actual work will start in November.

He confirmed that MMC-Gamuda must meet the project deadline of 2016 or be penalised for late delivery.

“This partnership is about enhanced gain or pain for them,” Mohd Nur said, adding as the regulator, they want to make sure the project is carried out in the best fashion.

“If they can’t sign, we will ask the project owner Syarikat Prasarana Nasional Berhad (SPNB) to get a new partner. This is a priority project,” he added.

Mohd Nur said the Finance Ministry has set up a special purpose vehicle (SPV) to raise funds for the project but said the method has yet to be determined.

Despite that, MRT owner SPNB and the PDP, MMC-Gamuda, have already advertised to pre-qualify contractors for the elevated line, elevated station and depot.

According to SPNB managing director Shahril Mokhtar, the first tenders will be open in June or July for the first 16 packages for the elevated portion while bids for the tunneling work for a 9.5km stretch under the capital city will be awarded in December.

He disclosed that a one-stop technical committee will evaluate the bids before recommending it to a Finance Ministry committee that will decide on the contract awards.

“It’s their money so they decide,” Shahril said, adding this was different from the current LRT extension works which is funded by bonds issued by SPNB.

But he pointed out that any contract above RM300 million would require the ministry’s nod.

The SPNB chief said some 100 firms have applied for pre-qualification for the 16 packages in the elevated part of the 51km-long MRT; the deadline for pre-qualification ends on April 13.

Those who win the contracts will have to sign a tripartite agreement with SPNB and MMC-Gamuda as the project manager, Shahril added.

Mohd Nur said the tripartite agreement will ensure contractors’ failures can be overcome by using the PDP’s expertise to complete the packages.

“They have to work hard, otherwise these guys will eat their lunch anytime they fall,” Mohd Nur quipped.


He added the government will appoint another project manager for the tunneling work if MMC-Gamuda wins the job. MMC-Gamuda had proposed the MRT project as it was the tunneling contractor for the SMART flood water dispersion project.

“The PDP can’t be the project manager if it bids for a job. That is why it cannot take part in the tender for the elevated portion,” Mohd Nur said.

He also added that SPNB is already working on an integrated ticketing system for both the train and bus systems, apart from ensuring that the MRT stations are integrated with the current network.

Mohd Nur also pointed out that 13 out of the 35 stations will have park and ride facilities with a total of 4,000 parking bays.

“We are listening to feedback and will have time to fine tune the network before construction ends,” he added.

The MRT is the country’s biggest infrastructure project and also the largest National Key Economic Area (NKEA) project under Prime Minister Datuk Seri Najib Razak’s New Economic Model (NEM).

The massive project is expected to generate 130,000 jobs in its five year construction phase. The government hopes that more than half of the population in Greater KL will use the public transport system to prevent traffic congestion.
 

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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