Dr Wee: CRM appointed for procurement of Gemas-JB ETS after 22% price reduction offer

KUALA LUMPUR: The government appointed CRRC Rolling Stock (Malaysia) Sdn Bhd (CRM) for the procurement of the new Electric Train Service (ETS) six-cars sets, after the company offered a 22% price reduction.

Transport Minister Datuk Seri Dr Wee Ka Siong said through the price reduction, the government had saved about RM80mil

"There are only three local companies registered with the Finance Ministry (MOF), but only two local manufacturing companies are active in the manufacture and installation of rolling stocks,” he said during the question and answer session in the Dewan Rakyat on Wednesday (Dec 15).

He was replying to a question from Anthony Loke Siew Fook (PH-Seremban) on the procurement of rolling stocks for the Gemas-Johor Bahru ETS services.

Elaborating, Dr Wee said the government, through the Economic Planning Unit on Oct 30, 2017, had approved the procurement of rolling stocks of Gemas-Johor Bahru ETS project with a total project cost of RM587mil.

He said to support the ETS service plan and the Gemas-Johor Bahru Electrified Double Track project, which is expected to be completed in June 2023, a tender offer was uploaded on the Transport Ministry's (MOT) website on Jan 23, 2020, and a tender briefing was held on Feb 3, 2020.

Wee said 29 local companies attended the tender briefing session and 17 companies purchased the tender documents.

The financial and technical assessment process was then held from May 18, 2020 to June 5, 2020.

"Based on the scope and cost set, only three companies participated in this tender procurement process.

"A tender procurement assessment report was presented to the MOT’s Procurement Board which met on June 23, 2020, but no companies passed both financial and technical assessments,” he said.

Wee said a review and market study had been conducted and based on that, only three local companies were registered with the MOF through the manufacturing field code. - Bernama