Highlight Together, Gamuda and MMC Corp win another MRT project

by **Cals** Mon 13 Jul 2015, 18:44

Highlight
Together, Gamuda and MMC Corp win another MRT project

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By Ahmad Naqib Idris / theedgemarkets.com | July 13, 2015 : 5:37 PM MYT

KUALA LUMPUR (July 13): [size=14]MMC Gamuda KVMRT (PSD SSP) Sdn Bhd, a joint venture between Gamuda Bhd ([You must be registered and logged in to see this image.]Financial Dashboard) and MMC Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), has been appointed as the project delivery partner for the second Klang Valley mass rapid transit (MRT) line 2.

In a statement this afternoon, Mass Rapid Transit Corp Sdn Bhd (MRT Corp) announced it has signed an agreement with MMC Gamuda KVMRT to have the latter become project delivery partner for MRT line 2 that plies between Sg Buloh and Putrajaya.

MMC Gamuda KVMRT will be paid a fee of 6% of the actual cost of the construction of the MRT Line 2, only if the key performance indicators (KPIs) are met. If not, the fees will be deducted based on quantum agreed by both parties, the statement said. MMC and Gamuda each holds a 50% stake in the joint venture.

The estimated construction cost of the MRT Line 2 is RM28 billion, excluding land and relocation costs. For the 6% fee, the joint venture would earn about RM1.68 billion in terms of fee for being project delivery partner.

According to the statement, among its KPIs are the delivery of the project within the agreed target cost and the target delivery date, compliance with safety, health and environment requirements, compliance with agreed quality standards and timely response to public complaints and implementation of stakeholder management.

The construction of the line is expected to commence in the second quarter of 2016.

MRT Corp's chief executive officer Datuk Shahril Mokhtar said the signing of the PDP agreement is a milestone for the development of the new line.

Shahril noted that MRT Corp has forged good partnership with the joint venture for MRT Line 1 links between Sg Buloh and Kajang.

He added that the Ministry of Finance and the Attorney-General’s Chambers have also agreed to the terms of the agreement.

The MRT Line 2 stretches 52.2km, serving a corridor with a population of around two million people from Sungai Buloh to Putrajaya. The line will serve Sri Damansara, Kepong, Batu, Jalan Sultan Azlan Shah, Jalan Tun Razak, KLCC, Tun Razak Exchange, Kuchai Lama, Seri Kembangan and Cyberjaya.

The public inspection for the MRT Line 2 is currently ongoing, until Aug 17.
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