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(Bernama) - MMC-Gamuda Joint Venture Sdn Bhd, which has been appointed the project delivery partner (PDP) for the Mass Rail Transit (MRT) project, will be allowed to tender for tunneling works.
"The government felt the exception should be made as the PDP is the only local construction company that has experience in major tunneling works such as in the SMART Tunnel project in Kuala Lumpur and the Kaohsiung MRT project in Taiwan," said Prime Minister Najib Razak today.
However, MCC-Gamuda will not be allowed to tender any of the work packages in the massive project, estimated to be around RM40 billion - the largest infrastructure project in Malaysia's history.
Najib was speaking to reporters at the RMAF base in Subang before his departure to Kuala Terengganu for a one-day official visit.
Nevertheless, Najib said the PDP would still have to compete for the work package with other companies and the award would be given on the basis of merit.
The prime minister also said the cabinet has decided that Syarikat Prasarana Negara Bhd, a fully-owned subsidiary of the Ministry of Finance Incorporated, would be the infrastructure owner of the project while the Land Public Transport Commission would be the supervising authority for the project.
On the appointment of MMC-Gamuda Joint Venture as the project delivery partner, Najib said it was based on the financial standing of the two public listed companies which make up the joint venture and their strong track records and experience in the field of construction and in undertaking huge and complex rail and tunneling projects.
"The PDP will assume the role of a project manager but with the added responsibility of having to deliver the project within an agreed time and cost.
"Any cost over-run and delays in project completion, which are basic common risks in projects, will be borne by the PDP," he added.
Najib said the PDP was not a turnkey contractor and the project would be divided into work packages which would be awarded individually through open tender.
"The government will make the final decision on the awarding of contracts," he added.
