Hornbill Unleashed

December 30, 2016

Fees for MRT 1 project RM750m, says MMC Gamuda

Filed under: Politics — Hornbill Unleashed @ 8:01 AM

An MRT train is pictured on the Sungai Buloh-Kajang Line on December 16, 2016. — Picture by Yusof Mat IsaMMC Gamuda KVMRT (PDP) Sdn Bhd has clarified that its fees as the project delivery partner (PDP) for the Mass Rapid Transit 1 (MRT 1) project were estimated at RM750 million.

It said the amount stated by PKR Vice-President, Rafizi Ramli, of RM7 billion was not true.

In a statement today, MMC Gamuda said, besides the RM21 billion construction cost, there were other associated costs — fees for engineering consultancy, quantity surveyors, system integration works, site investigations, topographical survey, overheads, contingencies and PDP fees.

It said the PDP fees were six per cent of the elevated portions of the project construction works on condition that it delivered on time and within budget.

On the RM40 billion figure for the entire three MRT lines, the company said, it was a concept proposal developed in 2010 based on prices in 2009.

“It did not include costs for electric trains and land acquisition.

“The current final alignments for the MRT 1 and MRT 2 are longer in terms of length and have more stations, which have increased the construction costs of the MRT project,” it said.

MMC Gamuda said the concept proposal was for all three lines to be constructed simultaneously while currently, the construction of the three lines was implemented in a staggered manner with one line at a time, which would result in a higher construction costs.

It said the MRT project was originally proposed in the concept proposal as a turnkey project.

However, the government has decided to appoint a PDP to implement it whereby MMC Gamuda was appointed, it said.

MMC Gamuda said as the PDP it was tasked to manage the construction of the elevated portions of the project and all construction contracts were awarded based on an open and competitive tenders.

It said as for the underground package, there was no PDP involved as MRT Corp Bhd has called for international tenders.

However, MMC Gamuda was awarded the underground contractor based on best technical and lowest tender price, it said.

“MRT Corp manages the underground works contractor,” it said.

It said that all processes that were carried out were subjected to two audits annually by Jabatan Audit Negara as well as by an external independent global professional services firm.

As for construction costs per kilometre in urban rail, it varied between projects and cities according to research by international academics, it said.

“It is also an universally-accepted practice to use construction costs which exclude engineering design and supervision, land acquisition among others.

“For example, the land acquisition costs in cities like Hong Kong and Singapore (which are much higher) can distort the comparison of construction costs,” it said.

MMC Gamuda said among the reasons for the high variations in construction costs were differences in project characteristics, labour costs and degrees of emphasis on safety, health and environment.

Based on its analysis (in 2014) of the construction cost for MRT systems of 49 cities in both developed and developing nations showed that 38 cities had more expensive MRT systems than MRT 1, it said.

It said that with a fair and transparent open tender process, the construction cost was decided competitively by the market.

Moving forward, MMC Gamuda said, it would continue to focus on completing the construction of MRT 1 (Phase 2) and MRT 2.


Source : @ Bernama Online


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