The government will announce a “more accurate” estimate of the Mass Rapid Transit (MRT) project cost in May after it completes evaluating the many processes as well as public feedback.

NONE Minister in the Prime Minister’s Department Mohd Nazri Abdul Aziz said today that the government is carrying out a baseline design review of the project - including evaluating tunnelling and construction work - and finalising the terms of the tenders to be called.

“... all feedback received and processed after the public exhibition which is on until May 14 will play a role in determining the cost of the MRT project. A more accurate estimate is expected by May after all cost elements are considered and finalised,” he told the Dewan Rakyat during Question time.

Replying Dr Tan Seng Giaw (DAP-Kepong), Nazri said Syarikat Prasarana Negara Bhd (SPNB), as the MRT project and asset owner, is pre-qualifying potential contractors. Tenders will be issued after the project costs and estimates are finalised.

The MRT project, announced by Prime Minister Najib Abdul Razak in the 2011 Budget speech last year, was initially estimated to cost RM36.6 billion.

To a supplementary question from Khairy Jamaluddin (BN-Rembau), Nazri said construction giant Gamuda-MMC will only be allowed to bid for the tunnelling section of the project, despite being appointed as the project delivery partner.

                

Nazri said the tunnelling section will be awarded based on the ‘Swiss Challenge’ tender process - it will be awarded to Gamuda if it can match the lowest offer from companies invited to bid for this section.

NONE Met in the Parliament lobby later, BN’s Rembau MP Khairy Jamaluddin said the government’s decision to limit MMC-Gamuda’s involvement in the project makes sense as tunnelling is the single largest portion of the MRT project.

“It remains to be seen why they were still applying (for other sections of the project) in the first place, but I guess if the government feels that it is enough (to limit them to tunnelling), then I guess we have to go with that,” he said, without giving any estimates on the tunnelling costs.

Khairy noted that MMC-Gamuda’s position as a local company that is experienced in tunnelling work is attractive to the government - by giving the company priority,it would be able to minimise capital outflow.

“For all intents and purposes, I suppose that means MMC-Gamuda has got the tunnelling project... the reason being it is a local company and it has the experience,” he said.

‘Will company want it all?’

However, Tan questioned the government’s decision to give priority to MMC-Gamuda, casting doubt on the company’s willingness to limit its involvement to tunnelling.

NONE “What is important is this: he (Nazri) said the government appointed MMC-Gamuda because they are joint-venture (partners), they are experienced in tunnelling so there was no open tender (issued),” he said.

“So on further questioning, whether or not MMC-Gamuda was given other jobs, he said ‘only tunnelling’. But even then, in the whole world and here, are they (the only ones with) experience in tunnelling? I’m sure there are others (who can do the job).”

Tan said he would take up Nazri’s suggestion to view the public exhibition to get a clearer picture of the project, but maintained his doubts that MMC-Gamuda would not bid for any other part of the project.

“They will want the whole blooming lot. I am going to pursue this further. He (Nazri) told me to see the exhibition; I will go and see it and pursue it by next week,” he said. 

azlan