Reconsideration of MMC-Gamuda termination for MRT Line 2

The decision to terminate MMC-Gamuda for the Mass Rail Transit Line 2 will reconsidered. This is the decision of our Prime Minister Tun Dr Mahathir Mohamad. His announcement was published in an article in TheStar.   This is two days after Finance Minister has announced termination of MMC-Gamuda for the underground works for MRT Line 2. Read here for earlier article.  The portion ofwork was supposed to have been retendered out through an international open tender process. The reason our PM said that the decision will be re-evaluated was because of the possibility of mass unemployment as a result of the retendering exercise. This was what was reported a day later, including the announcement by MMC-Gamuda on the loss of 20,000 jobs. 

Earlier, Lim said that 20,000 employees involved in the MRT2 projects would not be out of jobs as they would be re-employed upon commencement of the project. He said, “They (employees) can also be from Gamuda or other companies (for the MRT2 underground project). We are not cancelling it (MRT2 underground project), but we want to get a better price. We got a better price with RM5.2bil savings for the above-ground portion. The government believes it can get higher savings for the underground project through an open tender,” he added.” Beyond just the full-time employees, those under the Tunnelling Training Academy that was established by MMC-Gamuda to train local talent to carry out highly skilled construction work were also affected. One affected full-time employee said, “Imagine if we are not the main contractor, will all their previous hard work be wasted?.” Full article in TheStar here. 

It’s always the best to be very transparent for all things. This is the new Malaysia after all. International re-tendering aside, may we have the possibility of the potential savings from this? The reason many are asking is because MMC-Gamuda has also offered discounts for the underground works portion too. If the discount offered was truly far behind, it’s really important for us to understand the reasons why. Let’s understand that this is advanced engineering kind of construction work. If the price is too low, we also need to understand why and not just simply accept. Happy following.

written on 10th Oct 2018

Next suggested article:  Yes, I want the MRT Line 3. Better late than never

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