9 MP projects 408 not completed

It was revealed by SK Devamany that 408 projects from the 9th Malaysian Plan have yet to be completed as at the end of Dec 2010.

Some of the quoted reasons were:

1. Financial problems of the contractors

2. Lack of expertise

3. Contractors handling too many projects

What was not investigated and explained if the problems were also caused by the selection processes.

Read more from the star...

408 projects under 9MP yet to be completed

Apr 28, 2011 ... A TOTAL of 408 projects allocated in the Ninth Malaysia Plan (9MP) have yet to be completed as at December last year, Deputy Minister in the ...

thestar.com.my/news/story.asp?file=/2011/4/28/parliament/8564514&sec=parliament

... Quoted..
Thursday April 28, 2011

408 projects under 9MP yet to be completed



A TOTAL of 408 projects allocated in the Ninth Malaysia Plan (9MP) have yet to be completed as at December last year, Deputy Minister in the Prime Minister’s Department Datuk S.K. Devamany said.

They were part of the 25,974 projects awarded under the 9MP from 2006 to 2010, he told Senator Datuk Daljit Singh Dalliwal.

Devamany said that among the reasons cited for the delays were financial problems faced by contractors and their lack of expertise.

“There are contractors who handled too many projects at one time,” he added. However, the projects would not be abandoned as new tenders would be re-opened.

“Contractors who fail to complete their projects risk being blacklisted and will not be given a chance under the 10th Malaysia Plan,” Devamany said.

Deputy Home Minister Datuk Lee Chee Leong said a total of 10,958 police officers undertook training in customer services, administrative and communication skills last year.

He said the training was given to enhance counter services when they faced the public.

Bakun Dam New Saga

As if the earlier problems are not enough, new problem crops up.

Guys... Help these people and please enlighten them..

"Is the project, a business venture or a state development?".

.. What was the intent?.. Only they know..

Bakun Dam saga enters next chapter

Apr 20, 2011 ... Bakun Dam saga enters next chapter. Behind The News - Yap Leng Kuen. Should project be viewed as a business deal or part of state ...

biz.thestar.com.my/news/story.asp?file=/2011/4/20/business/8516081&sec=business

Read more from the star..

Wednesday April 20, 2011

Bakun Dam saga enters next chapter

Behind The News - Yap Leng Kuen

Should project be viewed as a business deal or part of state development?

THE protracted story of the Bakun Hydroelectric Dam project, instead of ending soon, may be just going into its next chapter.

The latest saga in the tariff pricing disagreement between Sarawak Hidro Sdn Bhd, owner and developer of the dam, and Sarawak Energy Bhd (SEB), the offtaker and state utility board, is entering its fourth scenario.

The first round of talks just after the completion of the dam looked at its possible sale or lease; subsequently, Sarawak expressed its intention to buy over the dam.

News surfaced recently that the sale of Bakun was off and that it would be operated on a joint-venture basis.

The latest is that SEB has proposed to buy a 30% stake in the project.

The power negotiations too have undergone three changes from earlier suggestions of flat to escalating tariffs. Currently, the offer is for a starting tariff of six sen per KwH.

In February this year, SEB had indicated it was willing to pay six sen per kwh but Sarawak Hidro said it needed a flat rate of 9.5 sen per kwh on a 30-year concession.

On an escalating basis, SEB had offered 5.4 sen per kwh at 1.5% per annum (inclusive of a one sen water tariff to the state); Sarawak Hidro had countered with 6.75 sen per kwh, also at 1.5% per annum.

The power purchase agreement (PPA) negotiations went on a rocky path last month with different instructions from the state and federal governments. Early last month, the PPA talks were ordered off by the state and later in the same month, the federal government expressed the desire for the PPA to be concluded as soon as possible.

The question here is whether the Bakun Dam project should be viewed as a purely business deal or part of the socio-economic development of Sarawak?

As a business deal, the Government should make every effort to recover its investments.

If it wants to play its developmental role, it may consider taking a hit and absorbing some losses while helping Sarawak to achieve its industrial goals.

Under the study conducted by PwC, it is believed that the Bakun project is valued at between RM8bil and RM10bil; however, Sarawak's latest tariff offer of six sen per kwh values it at only RM6bil.

In contrast, coal-fired tariffs cost 28 sen per kwh.

Some ask if giving a hefty discount is justified, as more expensive dams are coming up. They say it is not fair that power from Bakun has to be sold cheaply to subsidise the construction of these additional dams.

Others want to know why the cost of transmission via the new grid system is much higher, at over four sen per kwh compared with the cost of only one sen in the peninsula.

Sarawak has said it needs 6.000MW-7,000MW of power by 2020. Bakun has a capacity for 2,400MW and Murum is able to produce 944MW.

Others still pose questions on why polluting industries should take advantage of the cheap, clean power from Bakun.

These heavy industries located in the Sarawak Corridor of Renewable Energy (SCORE) have rebutted that they use advanced technology that do not pose a threat to the environment.

Scare tactics have been used which speculated on the possibility that the Bakun Dam project could end up being a white elephant if industries were not attracted to soak up the power at competitive rates.

Looking at the power requirements of Peninsular Malaysia beyond 2015, this power from Bakun may be transmitted back to the peninsula. Is it worth it to revive the idea of building the undersea transmission line especially in the wake of the nuclear scare and the limit on Malaysia's carbon footprint under the now expired Kyoto Protocol?

Already the pressure is on to conclude the tariff negotiations. Sarawak has signed non-binding agreements with four companies to supply power. Their plants are at the preliminary stages of planning and construction.

Who Want Bakun Dam?

The dam is completed. However the problem does end there. The mega project of about 8bil under the Mahathir era is seem to facing problems after problem.

It seem odd that, who ever decide to build it, is looking for the buyer of the power. A thinking person will not accept the excuses put forward by the political master, unless off course there are other reasons unknown to the public and only in the privy of the selected few.

The star biz carried the news..

SEB to buy 30% of Bakun Dam for RM1.3bil?

Apr 20, 2011 ... PETALING JAYA: Sarawak Energy Bhd (SEB), the state utility company, is believed to have proposed to acquire a 30% stake in the Bakun ...

biz.thestar.com.my/news/story.asp?file=/2011/4/20/business/8514165&sec=business

Wednesday April 20, 2011

SEB to buy 30% of Bakun Dam for RM1.3bil?

By YAP LENG KUEN
lengkuen@thestar.com.my

PETALING JAYA: Sarawak Energy Bhd (SEB), the state utility company, is believed to have proposed to acquire a 30% stake in the Bakun Hydroelectric Power project for RM1.3bil cash, sources said. The payment would likely be in the form of equity of RM700mil and a shareholders' loan of RM650mil, the sources added.

Based on its latest offer of a starting tariff of six sen per kwh, SEB is said to be working on a valuation of RM6bil for the Bakun Dam project compared with the cost of construction of RM7.46bil.

It is learnt that Sarawak Hidro Sdn Bhd, the owner and developer of Bakun Dam, finds the offer too low and is looking closer to seven sen per kwh, which will value the project at about RM8bil.

Sarawak Hidro's valuation is in line with the findings of a recent study by PwC, believed to be commissioned by the Finance Ministry (MOF), which valued Bakun at between RM8bil and RM10bil, sources said.

The Bakun Dam early this year

“Therefore, at SEB's valuation of RM6bil, it is believed that the valuation of Bakun will go down below its debt of RM5.75bil,'' the sources added.

“The MOF, which owns Sarawak Hidro, is handling these negotiations,'' said a source. “They will probably be working closely with SEB to find a mutually acceptable solution.''

The offer of six sen per kwh took into account a one sen water tariff the dam owner is obliged to pay to the state, sources said, adding that while asking for concessions from the Federal Government, the state should consider giving some leeway in terms of land charges and water levies.

Sarawak Hidro's price tag of RM7.46bil includes a RM950mil compensation to Ekran Bhd, the previous developer that could not complete the job, and RM500mil in resettlement costs.

Late last year, SEB had offered RM6bil to buy over the entire dam project. The MOF is believed to have cautioned that a sale of the mammoth project at below cost would be subject to scrutiny from the Public Accounts Committee.

Subsequently, SEB increased its offer to RM7bil with the following conditions:

The debt of RM5.75bil must be guaranteed by the Federal Government;

The equity portion of RM1.25bil would be paid over two years; however, there were no other details on this;

SEB wanted immediate control of the dam; and

The Federal Government must indemnify any potential cost over-runs.

Earlier talks had centred around possibilities of paying tariffs at flat and escalating rates; however, the parties could not come to any agreement.

This tussle involving ownership and power tariffs at the Bakun Dam has received the attention of top government officials.

It is believed to be in the agenda chaired by the Prime Minister at the oil, gas and energy committee under the Performance Management and Delivery Unit (Pemandu).

Sources said the talks were likely to last a few more months. “Both parties need each other badly,'' said a source, adding that they just needed to hammer out an acceptable solution for all.

The 2,400MW Bakun Dam is ready to supply 300MW in about three months' time, while SEB has signed term sheets with four companiesPress Metal Bhd, OM Materials, Asia Minerals Ltd and Tokuyama Corpfor supply of 1,300MW for their upcoming plants.

Related Stories:
Bakun Dam saga enters next chapter
Bakun hydro project to be joint venture

Mollywood Malaysia

If the US film industry has Hollywood, the Indian has Bollywood, then the Malaysian would have Mollywood...

At least, that is what the paper was saying, though it may be a challenging task.

The news about the setting was covered by Cnet Asia. on Jul 1999.

It would be interesting to check the status of this multi-million dollar project now, as on April 2011.

please google search.. "malaysian e-village"
You will up to a surprise...

..as there is nothing except a forum post..
------------------------------------------------

Malaysia builds US$60m Hollywood-style studio for MSC
Posted on July 15, 1999
Filed Under CNET, Julian

KUALA LUMPUR–Watch out Hollywood, here comes Mollywood.
Malaysia is hoping to replicate the Hollywood-Silicon Valley combination in California by building its own film studio cum movie theme park within the Multimedia Super Corridor (MSC) high-tech zone.

The Entertainment Village or E-Village will be situated on a 200-hectare site near Cyberjaya, the host city for information technology companies in the MSC.
Malaysian multinational Datuk Keramat Holdings (DKH), the part owners of Leavesden Studio in Britain, will initially spend US$60 million on the project.
MSC promoter Multimedia Development Corporation (MDC) disclosed details of the E-Village at the annual panel meeting for international advisors to the project last week.
Its executive chairman Dr Othman Yeop Abdullah said the studio will be the first phase of the E-Village followed by the building of a theme park, styled after a similar park in Orlando but with local cultural components, and a third phase which will be a holiday resort, and a township for businesses and residents.

The E-Village is part of MDC’s plan to cluster broadcasters, film producers, post-production companies, animation companies, and specialists in multimedia training and education in the MSC.

Dr Othman said DKH has the necessary expertise because of its involvement with the Leavesden Studio which counts among its recent coups George Lucas’ “Star Wars Episode 1: The Phantom Menace”, James Bond movie “Golden Eye”, and “Mortal Kombat 2: The Annihilation.”
The MDC has actively promoted Malaysia as a film location in recent months. It was largely responsible for securing two major 20th Century Fox productions namely, the historical drama “Anna and the King”, starring Jodie Foster and Chow Yuen Fatt, which relocated here after it was rejected by Thailand, and heist thriller “Entrapment”, a Sean Connery-Catherine Zeta Jones vehicle which filmed several key scenes here.

The MDC helped with visa processing and customs clearance and facilitated security and the provision of extras.

Next week, the MDC will head a promotion campaign to India to lure the best of so-called Bollywood to the MSC. The four-day mission will be led by Minister of Energy, Communications and Multimedia Leo Moggie, beginning July 19 and has scheduled visits to Mumbai and Hyderabad.

“We would like to draw from India’s experience in the setting up of its much talked about Hyderabad E-Village as we plan ahead to establish our own at the fringe of Cyberjaya,” Dr Othman said in a statement.

Despite its Hollywood-wannabe ambitions, Malaysia, however, seems unable to shake its conservative attitudes to film-making.

Prime Minister Dr Mahathir Mohamad recently lashed out at “Entrapment,” for “distorting the truth” by splicing the world’s tallest buildings, the 88-storey Petronas Twin Towers in Kuala Lumpur as if it were rising from the slums of Malacca, 150 km away.

Dr Mahathir, who is an ardent promoter for the MSC and has called the 452m-high Twin Towers, the “northern gateway to the MSC”, was upset at Hollywood’s poetic license.
“The distorted view of the skyscrapers will certainly make movie audiences in rich countries conclude that Malaysia is one of those developing countries which waste public funds, perhaps even foreign aid, on useless grandiose monuments,” he reportedly said.

“I really cannot understand why we need to distort and harm when we can be charitable without any additional cost to ourselves,” he concluded.

Malaysia has also banned previous movies like animated musical “Prince of Egypt”, Holocaust epic “Schindler’s List” and most recently “Austin Powers: The Spy Who Shagged Me” for varied reasons.

Detractors say it is ironical that the country that wants to woo Hollywood and encourage such creative endeavors, at the same time adopts such a non-liberal stance to film-making.
Malaysian audiences denied the movies on screen, however, were still able to obtain the banned movies, albeit illegally, in pirated VCD formats sold at popular night markets.

Published in CNET Asia, July 15, 1999.

RM50 million to maintain 2 submarines per year

We were shocked about the payment of RM500 million as a good will money to a specially created company for the purpose. Since then the man in charge had appeared to leave Malaysia and spend the money in some other country. Al least that was what appear in the news, but we are not in position of the truth.

At Dewan Rakyat the people are being told that it cost rm50million to maintain the 2 submarines. It am sure if the Malaysian are able to think, there are better use of the money. If only they are willing to invest on research and development, they would be able to build up a local technology. Developed countries, like Singapore knows what technology are critical and spend on developing it.

However , this will no produce the easy money, one will not get the rm500 million commission, but if we think of the benefits for the nation, this is the way to go forward.

We do not know if the 50mil spent annually is solely for maintenance. We hope that there is no commission paid to project partners that do not add value.

Read more from the star:

RM50mil spent on subs yearly

Mar 31, 2011 ... ABOUT RM50mil is needed each year to ensure the navy's two submarines are fully operational for the country's defence needs, Deputy Defence ...

thestar.com.my/news/story.asp?file=/2011/3/31/parliament/8382716&sec=parliament

Quoted:

"

Thursday March 31, 2011

RM50mil spent on subs yearly

> Reports By MARTIN CARVALHO and YUEN MEIKENG

ABOUT RM50mil is needed each year to ensure the navy’s two submarines are fully operational for the country’s defence needs, Deputy Defence Minister Datuk Dr Abdul Latiff Ahmad said.

He said the maintenance cost for each Scorpene submarine over a six-year period was about RM25mil each year.

The maintenance cost, he said, did not include the supply of spare parts or initial equipment needed for the operations of the submarines.

“However, under the contract, it is guaranteed that the assets (submarines) can be used at any given time to meet the needs of the navy; failing which a penalty can be imposed on the company,” Dr Abdul Latiff said when replying to a question raised by Tian Chua (PKR–Batu).

He stressed that proper maintenance of the submarines – KD Tunku Abdul Rahman and KD Tun Razak – was crucial to ensure that they were able to operate under extreme conditions, while maintaining the safety of its crew.

“Each submarine has two million parts and is equivalent to 14 Boeing 747s.

“That is the reason why safety audits are carried out on them,” he said.

To a question by Ibrahim Ali (Ind–Pasir Mas), he said both submarines were currently fully operational.

He said the ministry was also looking at organising a tour of the submarines at ports in the country to promote them to the public."

Sarawak get 5.7b for election

The star newspaper released the news on thursday 24 March 2011 that Sarawak is getting rm5.7bil under NKRA. These are for various infrastructure projects for amenities to upgrade the standard of living for the people.

The chief ministers Taib Mahmud said:

a. by end of 2012 , 700 km of roads would be built.

b. 12,000 will benefit from the rural electricity scheme.

c. 4000 will get treated water.

d. By end of 2012, RES will increase from the current 66% to 95% and treated water from 57% to 90%,” Taib told the media here recently.

Further news ...

The Rural and Regional Development Minis-try said there had been encouraging progress in the construction of roads and the provision of power supply to rural areas under the NKRA for rural infrastructure nationwide.

Minister Datuk Seri Mohd Shafie Apdal said the ministry had built 207.7km of road as of Jan 31, this year, with 44.5km in Sabah, 37.37km (Sarawak) and 125.86km (Peninsular Malaysia).

It aims to complete the construction of another 697.4km of roads to achieve the target of 905.12km for the year.

On electricity supply, he said the ministry was in the process of channelling supply to housing areas in Sabah and Sarawak, which was expected to be completed this year, targeting some 27,000 houses nationwide.

During Prime Minister Datuk Seri Najib Tun Razak's recent visit to Serian, he had announced a whopping RM252.35mil allocation for water and electricity supply.

Many among the Opposition parties, said to be out of ideas for campaigning during by-elections in Kerdau and Merlimau, recently tried to question the timing of announcements by the Barisan Nasional government for such development projects, alleging that they were made simply to bait for votes.

According to Deputy Prime Minister Tan Sri Muhyiddin Yassin, the Government aimed to complete all projects under the NKRA in Sarawak by next year, and that he was closely monitoring them via monthly reports on their progress. - Bernama

resources:

RM5.7bil for Sarawak under NKRA

Mar 24, 2011 ... On electricity supply, he said the ministry was in the process of channelling supply to housing areas in Sabah and Sarawak,...

thestar.com.my/news/story.asp?file=/2011/3/24/nation/8334676&sec=nation

KL to be top 50 livable city

The star newspaper carried the news:

Nong Chik hopes to put KL in top 50

Thursday March 24, 2011. Nong Chik hopes to put KL in top 50 ...Nong Chik Datuk Raja Zainal Abidin a new vision — to see it in the top 20 by the year 2020. ...

thestar.com.my/metro/story.asp?file=/2011/3/24/central/8275230&sec=central

Currently Kuala lumpur is ranked 79 out of 130 listed livable worlds city. The ranking had made the Federal Territories minister came out with a new vision to position Kuala Lumpur in the top 20 by the year 2020.

I find the trend of wanting to gain acceptance and recognition by an external party is widespread in Malaysian Leaders. We would come across desires such as, building the tallest skyscraper, the longest bridge and even the tallest flag towers. I had been living overseas and views their newspaper, but the westerners do not have this strange desire. They are confident of themselves even without external recognition.

I would have though the measures success can be the target. Take for example, public transport, if the measure of bus per thousand population, a thinking leaders may want to achieve the number equating to the developed nations.

Raja Nong said, with the GTP the greater KL will be transformed to vibrant city and economic hubs with:

a. quality infrastructure

b. green spaces

c. comprehensive transportation

d. Wifi Availability

The second relaunch of the Bandar Tasek Selatan Integrated Terminal is taking shape.

The much publicized first launch was for 1 Jan 2011 opening failed miserably. The bus companies did not move in as expected. It seem that the terminal was not ready then. It reminded me of the opening of multibillion $ KLIA, which left much to be desired.

The star newspaper published the news about the relaunching of the terminal on 1 March without mentioning a word of the early failure.

....day March 14, 2011

New ITT-BTS opens its doors
By NoEL Chang


KUALA LUMPUR: The Integrated Transport Terminal Bandar Tasik Selatan (ITT-BTS), a major initiative of the GTP’s Urban Public Transport NKRA to de-congest Kuala Lumpur’s city centre by diverting approximately 400-500 express buses to outside the city centre, started its full operations on March 1.

While there were many bus operators already relocated to the new terminal, there were still others who were in the process of shifting into the spanking new facility.

Land Public Transport Commis­sion (SPAD) head of state operations and terminal licensing Mohd Fuad Ahmad said bus operators were required to fulfil the Commission’s selection criteria to be eligible to have their own ticket counters.

The reason: ITT-BTS also features an e-ticketing system where passengers are able to purchase their tickets from bus operators that do not have dedicated counters.

Bus operators who are not using the e-ticketing system or are providing less than 10 trips per day have been advised to sell their tickets using the system provided at the terminal.

Maju Terminal Management and Services has been appointed as the operator of ITT-BTS.

Its managing director Roslan Shariff said with the migration of more bus operators to the new facility, the terminal had seen a steady increase of passengers.

Labuan Investment RM3b

The New Strait Times edition 9 Mac Page B2 reported that RG Gas us set to invest up to RM3b in Labuan. The search in the online edition gave the heading:

RG Gas set to invest up to RM3b in Labuan

9 Mar 2011 ... RG Gas group project director Jimmy Y.M. Tang said the hub will be ... In a statement issued at the EPP event, RG Gas and Chemicals ... www.btimes.com.my/Current_News/BTIMES/articles/rgaschem/Article/

RG Gas and Chemical Sdn Bhd was reported to spend the amount over 10 years to build an integrated oil and gas hub on Pulau Daat in Labuan. According to the group project director, the hub will be developed in 4 phases. The location is strategic is it is nearer to China and Korea.

This was announced as one of 9 entry Point project (EPP) for the ETP by PM Najib in Kuala Lumpur yesterday...

The straittimes covered the news...

==============================

RG Gas set to invest up to RM3b in Labuan

By Kamarul Yunus

Published: 2011/03/09

Share

PDF

EMAIL

PRINT

CURRENCY CONVERTER

LARGER TYPE

SMALLER TYPE

TOOLS DICTIONARY : THESAURUS :

RG Gas and Chemicals Sdn Bhd is poised to spend up to RM3 billion over 10 years to build an integrated oil and gas hub on Pulau Daat in Labuan.

RG Gas group project director Jimmy Y.M. Tang said the hub will be developed in four phases.

It will likely benefit from the opening of new oil fields around the area, particularly offshore Sabah.

"The location is strategically located nearer to South Korea and China, our potential customers," Tang told reporters on the sidelines of the announcement of nine Entry Point Projects (EPP) of the Economic Transformation Programme (ETP) by Prime Minister Datuk Seri Najib Razak in Kuala Lumpur yesterday.

Tang said the first phase of the project, with an investment of RM500 million, would involve the building of a storage tank terminal, with a capacity of 300,000 cubic metres.

"We are currently undertaking the earthworks for our first phase, which will be completed by year-end. We expect the first phase to start operations by the end of 2012 or early 2013."

He said the remaining three phases would include building a 1.5 million cu m storage tank terminal, engineering fabrication yards like jacket platforms and other facilities, including water storage facilities.

Tang said RG Gas should start receiving revenue from the project by 2013.

On why it decided to participate in the ETP rather than invest directly, Tang said the company felt more secured if the project gets a strong support from the government.

"This has given us a lot of encouragement and of course, assistance all the way. It is very good to participate in this programme because it has given us a lot of inspiration," he said.

In a statement issued at the EPP event, RG Gas and Chemicals announced that it would invest RM1 billion over three years in an integrated oil and gas hub on Pulau Daat.

"This hub will provide land-based logistics and support services and is expected to have a gross national income of RM360 million for the first phase of its operation," RG Gas and Chemicals group chief executive officer Danny Y.H. Hang said in the statement.

He said the company had received approval from Labuan Corp to convert Pulau Daat into an industrial zone for the purpose.

"This project will create some 1,000 jobs over the construction period. The project will no doubt enhance the position of Labuan and Sabah as one of the leading oil and gas hubs in the country, and ultimately, the region," Hang added.

Read more: RG Gas set to invest up to RM3b in Labuan http://www.btimes.com.my/Current_News/BTIMES/articles/rgaschem/Article/#ixzz1GYo5OwFl

Kuala Lumpur MRT to be RM50bil

The latest estimate is, the 150 km Mass Rapid Transport will cost 50,000,000,000 this is RM 50b.

When Gamuda - MMC estimated the cost about 2 years ago, it was using the 2009 costing.

Even the single line of Sungai Buluh to Kajang will cost RM18b plus land acquisition.

The full story was covered by the Star on 5 Mac 2011.

Saturday March 5, 2011

MRT project cost now estimated to reach RM50b
By EDY SARIF and THEAN LEE CHENG
starbiz@thestar.com.my




PETALING JAYA: The construction cost of the entire 150km Mass Rapid Transit (MRT) urban transport project may run up to RM50bil, three sources said, two of whom are directly involved in the project. The third is an independent party doing consulting work for the MRT line.

“When Gamuda-MMC first gave an estimate a couple of years ago, a figure of RM36.6bil was brought up for the 150km line,” said the source who is directly involved with the project.

“Now that we are concentrating on one line Sg Buloh-Kajang we have asked them for an estimate and they said it may cost RM18bil to RM20bil to construct. This does not include the rolling stock, land acquisitions and other provisions.”

Land Public Transport Commission chief executive officer Mohd Nur Ismal Kamal said the Government was doing all it could to drive down the cost.

“With land acquisition and rolling stock, it could come up to RM50bil, but it is too early to say,” he said. “We will know the full picture later as the project is still at the public display stage. This will end in middle of May.”

“From the feedback, we will then consider the alignment and the length of the platforms for the stations, whether it is a four-car train or more,” Mohd Nur added.

He said that once the public display was over, a target cost would be worked and agreed on. Once the tender was over, it may be different from the target cost, he said.

“The MRT is not just a transport project. It will have a catalytic effect,” Mohd Nur said, adding that an independent party would scrutinise the project plans and ensure that optimum value was derived.

The entire project will be fully funded by the Government and a special-purpose vehicle under the Finance Ministry would be set up to advise, manage and raise the funds.

CIMB Research in its report yesterday said that the higher cost for the Sungai Buloh-Kajang line was not a surprise as the earlier number was based on 2009 prices. (Higher construction cost and inflation may contribute to the current cost which is estimated to reach RM20bil for the Sg Buloh-Kajang line.)

“Based on the average RM353m/km for the line, the entire MRT project (150km) could be worth RM53bil compared with the current estimate of RM36bil,” it said, commenting on the outcome of Syarikat Prasarana Negara Bhd's contractors' briefing on Thursday.

The briefing was to provide an overview of the MRT project and the job opportunities available.

The event was packed with more than 100 contractors, according to a Prasarana spokesman when contacted by StarBizWeek.

Prasarana project director Zulkifli Mohammad Yusof and Datuk Azmi Mat Nor, who represented the Project Development Partner (PDP), chaired the event. (MMC-Gamuda JV Sdn Bhd manages the project as the PDP.)

CIMB Research said the briefing focused on the Sg Buloh-Kajang MRT line's project structure, alignment specifications, tender guidelines/timelines and updated cost breakdown.

“The main takeaways from the briefing were the prequalification process that will start this month and the total estimated cost for Sungai Buloh-Kajang MRT line that is RM20bil,” it said.

It said Prasarana would start the ball rolling with the elevated structure package (elevated portion is worth RM10.8bil of the total cost of RM20bil) which would be broken up into several sub-packages and was open to all contractors except the PDP.

“Priority will be given to contractors with financial strength, expertise and track record. Contractors who do not prequalify will still be able to bid for the subcontracting packages,” it said.

It added that this suggested the awards were likely to take place no earlier than May 11, while the July 11 timeline for the start of work was still intact.

Prasarana and the PDP will work together in rolling out the award of the MRT packages and disbursing the funds via progress payments.

“Funding/payment will be drawn down from a special company under the Finance Ministry,” it said.

====================================

Beside the issues of the his cost, more questions and issues was raised.

Among them:

1. People of Tan Tun were unhappy with the unprofessional way of giving notice of land acquisition. How did MRT do it. The hang the notice on the surrounding trees. May be the persons from MRT were seeing too much of the ancient movies, in the era of Malacca Sultanate.

2. Is Pasarana the qualified company for the job? Reasons:
a. Financial standing - Pasarana is in deep debts of rm9.4bil and matured bonds in tune of rm7.1 bil. Some may twist and argue, that the debts is the reason why Pasarana has to be given the job. The company will bot have the financial problem after the RM50b project.

3. Pasarana is also making money from the property deals.