MMC Gamuda lauds review of MRT2 contract cancellation

KUALA LUMPUR: MMC Gamuda KVMRT (T) Sdn Bhd, a joint venture between Gamuda Bhd and MMC Corp Bhd, has welcomed the decision by Prime Minister Tun Dr Mahathir Mohamad to review the cancellation of the Mass Rapid Transit Line 2 (MRT2) underground contract.

MMC Gamuda yesterday said it remained committed to holding discussions with the Finance Ministry to reach an agreeable cost reduction for the MRT2 underground works.

It said the social media outpouring by MMC Gamuda staff over the cabinet’s decision was sincere.

“We urge all stakeholders, especially our staff, subcontractors and suppliers to remain calm, be patient and trust in the wisdom of our prime minister in this impending review,” it said.

“We hope that the government would invite us back to the negotiating table as part of that review process.”

MMC Gamuda said it would adopt an open-book approach, with the appointment of an international engineering consulting firm that had the experience and track record to assess tunnelling works around the world, and as such, be in the best position to re-examine where savings could be derived.

“Our request in return for the open-book approach is that our intellectual property (IP) rights and commercially-sensitive information are duly respected as such by the said reviewing consultant and all reviewing parties, during this review process.”

On Sunday, Finance Minister Lim Guan Eng said the government would re-tender the underground portion of the MRT2 project as it could not come to an agreement with MMC Gamuda over cost reductions.

In response, MMC Gamuda said the cancellation would affect 20,000 employees, more than 600 sub-contractors, including Bumiputeras.

There was also backlash on social media to Lim’s announcement, including from MMC Gamuda staff.

On Tuesday, Dr Mahathir said the government would re-consider the cancellation and re-tendering of underground works for MRT2.