The Govt should consider a PDP for the Gemas-jb double track job

NOT only has the award of the Electrified Double Tracking Project (EDTP) for the Gemas to Johor Baru link been delayed, it has unintentionally drawn controversy.

One recent foreign press report alluded that there has been a bit of chopping and changing by the authorities here on which party is to be awarded the main job for building the double track.

True or not, the fact remains that the 200km or so double-tracking project from Gemas to Johor Baru, costing about Rm8bil, is the only portion of the North-south doubletrack railway project that is still unawarded.

To recall, it has already been agreed on a government-to-government basis that the main contractor for the project will be one of three shortlisted Chinese companies. These are namely, China Railyway Engineering Co, China Railway Construction Co and China Communication Construction Co. All three are subsidiaries of China’s Ministry of Railway

Not taking anything away from that agreement, perhaps the Malaysian government ought to consider having a strong local party to become the project delivery partner (PDP) for the Gemas-johor Baru double track project.

Here’s why: Firstly, the role of the Pdphas its clear advantages, although admittedly, many including this writer have been critics of it.

But you can’t take away the merits of the PDP, which has become clearer over time, especially in light of its first major application in Malaysia – the Klang Valley Mass Rapid Transit (KVMRT) project.

The most significant aspect of the PDP is that the party playing that role assumes the risks of delays and cost overruns. The PDP is not the main contractor and so having the PDP in the Gemas-jb double track can still fulfill the government-to-government agreement of having a Chinese party as the main contractor.

For its role of assuming the project and financial risk, the PDP is to be paid a fee for this. But that fee would certainly be worth it (from the standpoint of the project owner) as the presence of the PDP reduces the ugly prospects of cost overruns and delays.

Far too often, in past governmentinitiated infrastructure projects in Malaysia, delays and cost overruns had become the norm.

An often, the Government had to dig deep into its coffers to bail out such projects.

So what the presence of the PDP brings to the table is that the Government is shielded from the financial risks of these projects.

Secondly, the PDP would remove much of the jockeying and bad press in relation to the Gemas-jb double track project.

The appointed PDP would largely determine who the main contractedparty should be because it is in the PDP’S interest that the project gets delivered on time and within budget. Hence the most attractive party would be picked as the main contractor and so on.

This way, no one can fault the Government for say, siding one Chinese company over another. And the Government itself is removed from the entire process of having to make this selection.

What the Government has to do though is to pick the right PDP partner for the project.

It has to be one with the right expertise and track record in this area plus the balance sheet strength to assume the risks it would take on as the PDP.

By having a local party as the PDP, it is assumed that there would be less problems in areas such as integration with existing systems.

Also (and drawing a leaf from the KVMRT again) the Gemas-jb EDTP project should include the presence of the independent checking engineers (ICE) and value management consultants (VMC) to act as checks and balances.

The ICE monitors the progress of the project and its input is needed before contractors are paid. It is also tasked with safety aspects of the project.

The VMC is an independent party that would scrutinise the project plans and ensure that the optimum value is derived.

No doubt all these consultants, including the PDP would be paid a fee for their work.

But that’s a fee that would surely be worth every sen if the PDP and the other consultants, can clear up the problems of the Gemas-jb double track and get this project going at last.

News editor Risen Jayaseelan still hopes that once the double track is fully in place, it will be used at its optimum level before any decision is made on the other mega infrastructure project, the high speed rail link.