Govt-funded MRT

By Ooi Tee Ching

The government will set up a special vehicle company (SPV) to channel total funding for the proposed greater KL mass rapid transit (MRT) project.

Land Public Transport Commission (SPAD) chief executive officer Mohd Nur Ismal Kamal said the multi-billion ringgit project will not be undertaken on a turnkey basis and contractors need not seek financing.

"The greater KL MRT project is based on an international concept of project delivery partner, a hybrid of turnkey and project management consultancy," he told reporter at a briefing in Kuala Lumpur yesterday.

Also present at the briefing was SPAD chairman Tan Sri Syed Hamid Albar.

"I read some newspaper headlines saying MMC-Gamuda bags RM36 billion MRT project. That is factually wrong," he said.

Abdul Hamid assured that all MRT job packages will be tendered out to both local and international contractors.

"There's no room for direct negotiation. Contract awards will be based on merit, track record and financial strength of the contractor," he said.

"The MMC-Gamuda joint venture has been appointed by Syarikat Prasarana Negara Bhd as the project delivery partner. The RM36 billion figure is the construction cost estimated by MMC-Gamuda, it is not our estimate," he said.

As the project delivery partner, Nur Ismal explained that MMC-Gamuda will take on the risks and responsibilities in ensuring the MRT project is delivered on time. They will sit in with the government in the tender evaluation and appointment of contract packages.

Syed Hamid said the alignment of the Sg Buloh-KL-Kajang route will be displayed for community feedback in March 2011. A ride along the 60km line will take some 90 minutes.

The proposed MRT line will integrate with existing KTM Komuter stations in Sg Buloh and Kajang and light rail transit (LRT) stations in Kelana Jaya and Maluri. About 10km of the 60km line will be underground.

"We hope to roll out the tender for the first batch of job packages by April 2011," he said.

Read more: Govt-funded MRT