THERE are few if not many things that the government of the day does not deserve to claim credit for.
One that really stands out in today’s context is perhaps ‘to steal glory’ for the successful completion of the Phase 1 of the MRT Putrajaya Line (MRT2) from those instrumental in laying its foundation.
In congratulating project delivery partner MMC-Gamuda Joint Venture for the successful completion of the MRT2 project which was launched by Prime Minister Datuk Seri Ismail Sabri Yaakob today, opposition lawmaker Lim Lip Eng has highlighted a major contribution of the Pakatan Harapan (PH) coalition in the mega project which has almost being forgotten.
Reiterating the need for financial prudence and good governance in Malaysia, the DAP National Public Complaints Bureau chairman recalled how the project was earmarked as one of the top priorities for cost reduction by the PH coalition.
Such move was inevitable as the initial estimated cost of the project at RM28 bil when it was first approved by the Cabinet on Feb 26, 2014 had ballooned by one-fold to a shocking RM56.93 bil during the tenure of former Prime Minister Datuk Seri Najib Razak.
This ultimately led to a re-negotiation by the then Finance Minister Lim Guan Eng and his political secretary Tony Pua who together were able to save public funds of RM5.22 bil.
This came about after the MMC-Gamuda JV was issued an offer on October 3, 2018 to complete the above ground portion of the MRT2 project as a turnkey contractor at the cost of RM17.42 bil (vs the original cost of RM22.64 bil).
“This was achieved within five months of negotiation after the cost rationalisation exercise of the MRT2 kickstarted immediately after PH took over Putrajaya in May 2018,” the Kepong MP pointed out.
“The Finance Ministry (MOF) had then insisted that all unfinished underground work should be re-tendered out through an international open tender process.
“As a result of the work by the short-lived PH Government, the saving of billions of ringgit will help to reduce the national debt and interest that the Government (of the day) will need to repay using taxpayers’ money.”
Despite the success of the PH Government to re-negotiate and revised downward the original cost of the MRT2 project, Lim said project contractor Gamuda Bhd was still able to remain strong in its profitability as evident from its latest sets of financial performance.
Despite the pandemic, Gamuda Bhd posted a 38% jump in net profit to RM152.37 mil in its 1Q FY7/2022 ended Oct 31, 2021 from RM110.30 mil a year ago. Moreover, the Group’s half-year earnings ended Jan 31, 2022 jumped 41% to RM329.5 mil from RM233.55 mil in 1H FY7/2021. – June 16, 2022
Main photo credit: Malay Mail
