Govt to review international open tender decision on MRT2

11-Oct-2018 Intellasia | New Straits Times | 6:00 AM Print This Post

The government will be reviewing its decision to open an international tender process for the Mass Rapid Transit 2 (MRT2) underground works, says Tun Dr Mahathir Mohamad.

The prime minister said the government is doing so as the restructuring efforts announced recently had affected a workforce of around 20,000 people.

“We are studying this carefully and reviewing this matter. It will be discussed,” said Dr Mahathir after delivering the closing address at the Khazanah Megatrend Forum 2018 here on Tuesday.

Also present were Economic Affairs minister Datuk Seri Mohamed Azmin Ali, and Khazanah Nasional Bhd (Khazanah) general manager Datuk Shahril Ridza Ridzuan.

On Tuesday, Finance minister Lim Guan Eng said the government is determined to obtain the best value when it comes to public expenses, especially when it involves huge loans.

The finance ministry in cooperation with the transport ministry, government agencies such as Mass Rapid Transit Corporation Sdn Bhd (MRTCo) and other private entities have been conducting negotiations to reduce the MRT2 project costs since May 2018.

The move would reportedly lead to savings of RM5.22 billion of 23 per cent of the above ground costs for the MRT2 project.

MMC Gamuda KVMRT (T) Sdn Bhd (MMC Gamuda), the firm initially awarded the contract for underground works, had on Monday said the contract termination would affect a workforce of more than 20,000 people, as well as 600 companies from the supply chain.

From the figure, more than 3,000 workers are from MMC Gamuda JV, with 60 per cent of them Bumiputera.

On another development, Dr Mahahthir said he was not informed of any recovery plans by Khazanah for Malaysia Airlines Bhd (MAB).

“They (Khazanah) did not tell me. We will see (this recovery plan),” he said.


Category: Malaysia

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