The Star Malaysia

MMC Gamuda KVMRT: Our PDP fees are RM750mil, not RM7bil

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PETALING JAYA: MMC Gamuda KVMRT has clarified that its fees as project developmen­t partner (PDP) for the MRT project are about RM750mil, and not RM7bil as claimed by PKR MP Rafizi Ramli.

“Besides the RM21bil constructi­on cost for MRT 1, there are other associated costs such as fees for engineerin­g consultanc­y, quantity surveyors, system integratio­n works, site investigat­ions, topographi­cal survey, overheads, contingenc­ies and PDP fees.

“The PDP fees are 6% of the elevated portions of the project constructi­on work,” the company said in a statement.

On claims that the MRT’s original budget was RM40bil for all three lines, MMC Gamuda KVMRT said it was a concept proposal developed in 2010 based on prices the year before, and not inclusive of costs for electric trains and land acquisitio­n.

“The current final alignment for the MRT 1 and MRT 2 are longer in terms of length and have more stations, which have increased the constructi­on cost of the MRT project.

“The concept proposal was for all three lines to be constructe­d simultaneo­usly.

“Currently, the constructi­on of the three lines is implemente­d in a staggered manner with one line at a time, which would result in a higher constructi­on cost,” said the company.

It also said that research by inter- national academics had revealed that constructi­on cost per kilometre in urban rail varied highly between projects and cities.

A universall­y accepted practice was to use constructi­on cost that excluded matters like engineerin­g design and supervisio­n, as well as land acquisitio­n, it said in the statement.

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