PETALING JAYA: Gamuda Bhd and MMC Corp Bhd today announced the signing of two agreements with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) in relation to the MRT2 project.
The first agreement is a supplemental agreement to the project delivery partner (PDP) agreement between MMC Gamuda KVMRT (PDP SSP) Sdn Bhd and MRT Corp.
The second is a novation agreement between PDP SSP, MMC Gamuda KVMRT (T) Sdn Bhd and MRT Corp.
In a Bursa filing, Gamuda said the agreements were to formalise the role of PDP SSP to deliver and be responsible for the design, execution and completion of the entire KVMRT SSP Line on a turnkey basis.
Meanwhile in a separate filing, MMC Corp said the lump sum construction cost remains at RM30.53 billion.
Neither of the agreements are expected to have any material effect on the earnings, net assets and gearing of Gamuda or MMC Corp for their financial years ending July 31, 2020 and Dec 31, 2020 respectively.
Meanwhile, in a separate statment, the Finance Ministry said the agreements conclude the rationalisation process which succeeded in reducing the cost of the MRT2 project to RM30.53 billion from RM39.35 billion, a saving of RM8.82 billion or 22.4%.
The ministry revealed that the cost savings was achieved by building MRT2’s capacity progressively to fulfill current demand, with an allocation for capacity upgrade works in line with future demand.
It explained the progressive building approach is utilised to avoid a high debt burden.
“This approach does not affect the quality, safety and efficiency of the MRT’s operation,” said the ministry.
MoF also revealed that some of the cost saving measures included a change in project structure from a project implementation partner agreement to a turnkey model and project allocation rationalisation measures for refunds, contingencies and provisional funds,the postponement of Bandar Malaysia stations, and scope rationalisation for electrical and mechanical system works.
“Even though, there are changes in project structure, the government has ensured the original Bumiputra participation goal of 45% of the contract value amounting to RM13.7 billion remains,” said the ministry.
Currently, MRT construction is 70% done, and the project is expected to be fully complete in 2022 and operational in 2023.
The first phase of operations, between the Kwasa Damansara station and Kampung Batu Kekal station will be July 2021, while the second phase between Kampung Batu and Putrajya Sentral, will start operating in January 2023.
