Minister: No go for second phase of Klang Valley Double Track project
June 14, 2018
The second phase of the Klang Valley Double Track (KVDT) rail upgrade project will not be carried out for now, Transport Minister Anthony Loke has said.
The Star quoted Loke as saying that the timing of the project’s tender was questionable, given that it was awarded just days before GE14.
He also said that the project’s cost was too high at RM5.9 billion.
“The completion period given to the contractor was long and it was given out through direct negotiations. There was no open tender for the project.
“For now, it is a no-go for this particular tender,” Loke reportedly said.
Loke said a new tender will be called, but did not give a timeframe as to when this would be carried out.
He added that Keretapi Tanah Melayu Bhd (KTMB) has expressed the need for the second phase to be implemented because the current track is unsustainable.
“But financially, the government has no means to support it. So, we will have to find out how to go about it,” Loke said in the interview.
The second phase of the KVDT project involves 110km of railway tracks spanning from the KL station to Klang, Salak South to Seremban and Simpang Port Klang to Port Klang.
It was awarded to DMIA Engineering in partnership with Lembaga Tabung Angkatan Tentera (LTAT) at a cost of RM5.9 billion to be implemented over seven years. DMIA Engineering is also the contractor for phase one that is behind schedule.
“The cost is too high and it works out to RM53 million per kilometre. The whole project is about 110km and there are no new buildings or stations involved, just the track and signalling.
“We were told the cost is even higher than the Gemas to Johor Baru double-tracking project, which has new stations and tracks,” Loke said.
“We were told it would take seven years to complete phase two. Can you imagine if we agreed to seven years... there would be delays in services.”
In terms of phase one, Loke said the project was 60 per cent complete. However, he said that he had been told there would be a three-month delay in the completion to sometime in 2019.
The first phase covered upgrading of systems work between Rawang and Seremban, and from Sentul to Port Klang, involving about 150km at a cost of RM1.3 billion awarded to DMIA Engineering.
On the MRT2 and LRT3 projects, the transport minister said they would proceed as planned, as they were ongoing projects implemented well in advance.
“The MRT2 is an ongoing project. We won’t touch it and the same goes for the LRT3. However, in terms of costing and so on, they may be reviewed by the Finance Ministry. It is up to them to decide,” he added.
Malaysia looking at how to cut compensation to Singapore if high-speed rail dropped: Mahathir
May 26, 2018
The Malaysian government is looking at how it might reduce the compensation it has to pay to Singapore if it decides to drop the Kuala Lumpur-Singapore high-speed rail (HSR) project.
With Malaysia looking at ways to cut costs to pare its debt of RM1 trillion (S$337 billion), mega projects such as the 350km HSR deal inked in 2016 under previous prime minister Najib Razak and the RM55 billion East Coast Rail Link (ECRL) have come under fresh scrutiny.
In an interview with The Edge weekly published on Saturday (May 26), Prime Minister Mahathir Mohamad, whose coalition swept to power on May 9, raised the possibility of both rail projects being dropped.
"The terms and agreement for the HSR are such that if we decide to drop the project, it would cost us a lot of money," he said.
"We have entered into an agreement with Singapore. If we break the agreement, we have to pay a very large sum of money."
Ensure government procurement produces the best value for taxpayer’s money
May 10, 2018
To ensure that every cent of taxpayer’s money is spent well, the Pakatan Harapan Government will reform the public procurement system and the way contracts are awarded. This is to ensure that it is more competitive and it will generate the best value for taxpayer’s money. We will ensure that the open tendering is used extensively and transparently, particularly for large projects.
Under the Pakatan Harapan Government, the Ministry of Finance will be instructed to review all giant infrastructure projects with foreign countries so that its benefits can be shared by Bumiputera and all Malaysians fairly.
The Pakatan Harapan Government will review the practice of government procurement and tendering system, as well as the processes to issue public- private partnership contracts by the Public-Private Partnership Unit (UKAS). Our aim is to make sure that the criteria for bidding is transparent and consistent.
UKAS currently operates without transparency under the Prime Minister's Department. We will move it to the Ministry of Finance and all procedures to grant contract will be revamped to check the powers of the Minister and to eliminate corruption.
The Pakatan Harapan Government will improve the transparency of Malaysia’s financial administration and we will implement a more responsible budget. We will take into account the recommendations of international bodies, such as the International Budget Partnership to improve the process of preparing the national budget.
The Ministry of Finance will be instructed to prepare mid-term reports to enable Members of Parliament to assess the country’s financial performance.
We will implement accrual accounting system so that government expenditure can be better managed.
Since UMNO and Barisan Nasional are hiding too much information from the public, in the first year of our administration, the Pakatan Harapan Government will conduct a comprehensive audit forensics so that we can have full information of the real financial situation of the country. This information will be made public.