MMC Gamuda KVMRT: Our PDP fees are RM750mil, not RM7bil

PETALING JAYA: MMC Gamuda KVMRT has clarified that its fees as project development partner (PDP) for the MRT project are about RM750mil, and not RM7bil as claimed by PKR MP Rafizi Ramli.

“Besides the RM21bil construction cost for MRT 1, there are other associated costs such as fees for engineering consultancy, quantity surveyors, system integration works, site investigations, topographical survey, overheads, contingencies and PDP fees.

“The PDP fees are 6% of the elevated portions of the project construction work,” the company said in a statement.

On claims that the MRT’s original budget was RM40bil for all three lines, MMC Gamuda KVMRT said it was a concept proposal developed in 2010 based on prices the year before, and not inclusive of costs for electric trains and land acquisition.

“The current final alignment for the MRT 1 and MRT 2 are longer in terms of length and have more stations, which have increased the construction cost of the MRT project.

“The concept proposal was for all three lines to be constructed simultaneously.

“Currently, the construction of the three lines is implemented in a staggered manner with one line at a time, which would result in a higher construction cost,” said the company.

It also said that research by international academics had revealed that construction cost per kilometre in urban rail varied highly between projects and cities.

A universally accepted practice was to use construction cost that excluded matters like engineering design and supervision, as well as land acquisition, it said in the statement.