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TMCNet:  PDP to receive RM3.65b for MRT Line 1 [New Straits Time (Malaysia)]

[August 04, 2014]

PDP to receive RM3.65b for MRT Line 1 [New Straits Time (Malaysia)]

(New Straits Time (Malaysia) Via Acquire Media NewsEdge) KUALA LUMPUR: The project delivery partner (PDP) for the Mass Rapid Transit project, MMC Gamuda KVMRT (PDP) Sdn Bhd, will receive RM900 million in fees and reimbursable sums capped at RM2.75 billion for the Klang Valley MRT (KVMRT) Sungai Buloh-Kajang line, also called Line 1.


The PDP, however, will get the full fee only if it delivers the project on time and within the targeted cost, says Mass Rapid Transit Corp Sdn Bhd (MRT Corp) chief executive officer Datuk Azhar Abdul Hamid.

"This protects the government and the public infrastructure from cost overruns and cost due to project delays," Azhar said.

MRT Corp is the project owner and developer of Line 1, which is a six-year project that is expected to be completed by July 2017.

The PDP will receive a fee of six per cent of the total cost of awarded work packages for Line 1, estimated at RM14.7 billion, which excludes the RM8.28 billion cost for underground work package.

The underground work package should be excluded from the calculation of the PDP fee, Azhar said, in a statement issued last Friday.

MRT Corp has so far paid the PDP RM1.03 billion. This includes fees amounting to RM131.1 million and reimbursable sums totalling RM899.43 million.

"The PDP is responsible for and manages all construction and systems packages of the project, excluding the underground package. In reality, the PDP will earn fees of RM900 million over six years. This amounts to RM150 million a year," Azhar said.

Azhar was clarifying a Business Times report last week that stated that MMC Corp Bhd and Gamuda Bhd will collect more than RM4 billion for playing the role of project manager for Line 1.

The report stated that the PDP will receive fees amounting to RM1.38 billion, which is based on the system and construction cost of RM23 billion, including the underground work package.

The PDP will also receive reimbursable sums amounting to RM2.85 billion.

These are for overheads, engineering consultancy, quantity surveying, system integration work, and site investigation and topographical survey costs.

"Reimbursable sums are payments and not a profit sum. These costs would have been incurred by MRT Corp itself had a PDP not been appointed for the project. The reimbursable sums have to be claimed from MRT Corp and we have capped it at RM2.75 billion," Azhar said.

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