Klang Valley MRT Line Two decision eagerly awaited

"We hope that a decision on Line Two will be made soon so that we can deploy the learning curve and resources from Line One and not waste them. The faster Line Two starts the better, as Line One is progressing well. "The ball is in the MOF's (Ministry of Finance) court," MRT Corp. chief executive officer Datuk Azhar Abdul Hamid said in Kuala Lumpur on 30 June.

According to Azhar, 45.59 per cent of Line One has been completed as at 31 May.

He said seven more contracts worth slightly below MYR 1bn (USD 310M) will be given out this year, bringing the total value of jobs awarded to MYR 23bn (USD 7.17bn).

MMC-Gamuda JV -- a 50:50 joint venture between Gamuda Bhd and MMC Corp Bhd -- was appointed as the project delivery partner (PDP) for Line One in January 2011. It also won the MYR 8.2bn (USD 2.56bn) tunnelling job.

As a PDP, it will receive a six per cent fee of Line One's total contract value. Should the total cost of the project be less than or equal to the targeted cost, the PDP will be entitled to the full fee. However, if the project cost is more than the targeted cost, the fee will be cut in accordance with the agreed formula.

A PDP's top priority is to ensure the successful completion of mass rapid transit lines within the pre-determined target cost and date.

In the event a contractor or a subcontractor does not meet the pre-determined work package requirements, the PDP will step in at no risk to project delivery cost and time.

On Line Two, Azhar said it will also be implemented based on the PDP concept and opened to the private sector.

"The government has said Line Two will be done based on a PDP concept and it is its call on who it wants," he said.

MRT is the implementation agency and asset owner of the KVMRT, which comprises three lines estimated to cost around MYR 80bn (USD 25bn).

Line One, which is under construction, is from Sungai Buloh to Kajang. Line Two will comprise the north-south line from Selayang to Putrajaya, while Line Three is the circle line that will loop around the Kuala Lumpur city centre.

It is understood that the Land Public Transport Commission has completed the alignment feasibility study for Line 2 and it is currently being reviewed.