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Additional cuts and MMC-Gamuda will continue with the underground MRT works

Remember that debate online on who’s right and who’s wrong about the MRT Line 2’s underground works? After both sides have their say and supporters, the company which won against many other international bidders is now the ‘winner’ again. After that announcement of them being cut away from the underground MRT Line 2 works, MMC-Gamuda is now reinstated. Here’s that Article in TheStar here. The Ministry of Finance (MoF) announced today that MMC-Gamuda would continue the Mass Rail Transit Sungai Buloh-Serdang-Putrajaya Line (MRT2) project with a larger cost reduction for the underground works.
Its Minister, Lim Guan Eng said the decision was made after the final round negotiations which resulted in MMC-Gamuda agreeing to increase the cost reductions of the underground works to RM3.6 billion from RM2.13 billion. In a statement, he said, “This means that the construction cost (excluding interest during construction, land acquisition costs and other costs) of MRT2 has been successfully reduced by RM8.82 billion or 22.4 per cent from RM39.35 billion to RM30.53 billion.” Today, the Cabinet agreed to MMC-Gamuda’s new offer and the cost rationalisation exercise. Full article for reference here. 
Hopefully this does NOT repeat in future. This was not a directly awarded project and it was won through a tender. (regardless of whether they have advantage since they are a local company). By the way, this is the new Malaysia yeah. Please support facts and figures (as in numbers) and not figures as in some people regardless of the party they are from. A close friend said, “This is the best decision. The government and MMC-Gamuda are both winners for this case.” Well, if this is the case, then I think there’s another winner; the people like you and me. Happy following and taking a rise in MRT Line 2 when it’s completed on time instead of delayed like LRT Line 3 (earlier article) or HSR. (earlier article)
written on 27 Oct 2018
Next suggested article:  Transparent land transactions moving forward?
 

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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