THE government will announce the final contract agreement for the RM14.5bil rail double-tracking project after it concludes discussions with Malaysia Mining Corp Bhd (MMC)-Gamuda Bhd on issues related to technical matters, sub-contract works and funding for the project.
Second Finance Minister Datuk Dr Jamaluddin Jarjis said the final contract would only be signed after his ministry and Transport Ministry thrashed out outstanding issues with MMC-Gamuda.
“We need to first resolve the technical issues which will be handled by the Transport Ministry before we can sign the agreement. At the same time, my ministry will meet with them to discuss funding.
“They have already come out with some proposals, and we also have some models. We will present all these to the Cabinet for a formal decision,” he told reporters after witnessing the signing of an agreement on the avoidance of double taxation between Malaysia and Seychelles and the signing of the protocol to amend a similar agreement with Denmark in Putrajaya yesterday.
Jamaluddin said although the letter of award (LA) had been given to MMC-Gamuda, the contract was by no means finalised until the final agreement was signed.
This, he said, was a normal procedure because any contract would need to be renegotiated before the final agreement was signed.
Asked if Indian Railway Construction Co (Ircon) would get some portions of the multi-billion ringgit project, Jamaluddin said: “That will only be known after the contract agreement is finalised. The government will make the necessary announcement.”
Works Minister Datuk Seri S Samy Velly on Monday said that Ircom had came back with a new offer for the 70% of the work on the Ipoh-Padang stretch of the multi-billion ringgit project.
The MMC-Gamuda joint venture had said Ircon and China Railway Engineering Corp (CREC) did not accept the role of sub-contractors for the project and that it would proceed to either undertake the works itself or identify other sub-contractors.