INCREASED EFFICIENCY: MRT Corp hoping to secure govt
decision by year-end
The government may appoint a project delivery partner (PDP) for Line 2 and Line 3 of the Klang Valley Mass Rapid Transit (MRT) project.
Mass Rapid Transit Corp Sdn Bhd (MRT Corp) chief executive officer Datuk Azhar Abdul Hamid said the government is mulling
over whether to retain the PDP concept or scrap it altogether to save on cost.
Founded in September 2011, MRT Corp is the implementation agency and asset owner of the MRT project.
“We are hoping that a decision on Line 2 and 3 will be made by year-end,” Azhar told Business Times during the company’s Hari Raya open house, here, on Thursday.
The PDP concept is designed to enable the MRT project’s efficient rollout in phases, as opposed to the appointment of a turnkey contractor under the design and build model.
The PDP’s top priority is to ensure the successful completion of the MRT lines within the pre-determined target cost and date.
In the event a contractor or sub-contractor does not meet the pre-determined work package requirements, the PDP will step in at no risk to project delivery cost and time.
MMC-Gamuda JV — a 50:50 joint venture company between Gamuda Bhd and MMC Corp Bhd — was appointed as the PDP for Line 1’s
ongoing construction in January 2011.
As a PDP, MMC-Gamuda JV will receive a six proper cent fee of the total contract value.
Should the total cost of the project be less than or equal to the targeted cost, the PDP shall be entitled to the full fees.
But if the project cost is more than the targeted cost, the
PDP fees shall be cut in accordance with the agreed formula.
Line 2 and Line 3 comprise the Circle Line looping around the Kuala Lumpur city centre and the north-south line from Selayang to Putrajaya.
Line 1 is from Sungai Buloh to Kajang.