MyHSR tight-lipped on project cost, PDP value

> CEO says giving estimate would influence tender bids for KL-Singapore high-speed rail contracts

KUALA LUMPUR: MyHSR Corp Sdn Bhd remained tight-lipped on the estimated cost for the Kuala Lumpur-Singapore High Speed Rail (HSR) project as well as the contract value for the project delivery partner (PDP) model.

However, MyHSR Corp CEO Datuk Mohd Nur Ismal Mohamed Kamal ( pix) said at a media briefing yesterday that the PDP model has proven to be a success in the MRT 1, MRT 2 and LRT 3 projects.

“It is able to achieve results on time and within the budget,” he noted.

On Wednesday, a consortium of Gamuda Bhd and Malaysian Resources Corp Bhd accepted a letter of appointment from MyHSR to act as the PDP for the northern section of the project, while the southern part was awarded to the Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd-TH Properties Sdn Bhd consortium.

Mohd Nur Ismal said the project cost will not be revealed to avoid influencing tender bids.

“The cost estimate has never been disclosed by our side because this is an open tender project, so we do not want any cost estimate to influence the pricing of the bids,” he explained.

Second Finance Minister Datuk Seri Johari Abdul Ghani in 2016 projected that the HSR project will cost RM50 billion to RM60 billion. Late last year, a Singapore-based think tank estimated the project to be worth up to RM77 billion.

More than 60 civil work packages will be dished out under the HSR project involving over 5,000 sub-contract packages, which are open to local firms. More than 40% of the package value will be allocated to bumiputra companies.

In total, the HSR project is expected to create more than 70,000 jobs, of which 22,000 are professional and skilled positions.

With PDPs coming on board, Mohd Nur Ismal said, MyHSR has started planning advanced works and to come out with a detailed design for the project.

“Once regulatory requirements are met as well as the land acquisitions are settled, we’re ready to go. Some advance works will start end of this year.”

He said identified land for the project will be acquired in the second half of the year.

On the extension of the deadline for the Assets Co tender to Dec 28 this year, he said giving them more time will give MyHSR “more value-for-money proposals”.

China and Japan are perceived as the front runners to undertake the HSR project. The appointed Assets Co will be responsible for designing, building, financing and maintaining all rolling stock, as well as designing, building, financing, operating and maintaining all rail assets for the project.

The 350km HSR will cut the travel time between Kuala Lumpur and Singapore to 90 minutes and is slated to start running by Dec 31, 2026. There will be eight stations along the line including Bandar Malaysia, Sepang-Putrajaya, Seremban, Malacca, Muar, Batu Pahat and Iskandar Puteri in Malaysia, and Jurong East in Singapore.

Commenting on Pakatan Harapan chairman and former prime minister Tun Dr Mahathir Mohamad’s election campaign promise to review mega projects, including the HSR, Mohd Nur Ismal believes the benefits of the project for Malaysia will speak for itself.

“The spillover benefits are so huge. It will be a wasted opportunity if we don’t proceed ...,” he said, noting that Malaysia will have to compensate Singapore should the project fall through.