MMC-Gamuda to continue underground MRT2 with further cost cuts

  • Corporate News
  • Friday, 26 Oct 2018

Its job scope for the contract involves supplying concrete cement and metal for the upgrading of the Train Cargo Terminal at Padang Besar, Perlis, Dolphin said in a filing with Bursa Malaysia.

KUALA LUMPUR: The Ministry of Finance (MoF) announced today that MMC-Gamuda would continue the Mass Rail Transit Sungai Buloh-Serdang-Putrajaya Line (MRT2) project with a larger cost reduction for the underground works.

Its Minister, Lim Guan Eng said the decision was made after the final round negotiations which resulted in MMC-Gamuda agreeing to increase the cost reductions of the underground works to RM3.6 billion from RM2.13 billion.

“This means that the construction cost (excluding interest during construction, land acquisition costs and other costs) of MRT2 has been successfully reduced by RM8.82 billion or 22.4 per cent from RM39.35 billion to RM30.53 billion,” he said in a statement here, today.

MMC-Gamuda had previously agreed to cut the cost of the above-ground works by RM5.22 billion, which was accepted by the MoF.

However, its offer to reduce underground works cost by only RM2.13 billion was rejected by the MoF and decision was made for the contract to be terminated and be re-tendered.
Today, the Cabinet agreed to MMC-Gamuda's new offer and the cost rationalisation exercise. - Bernama
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