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'RM4b payout for MMC, Gamuda' [Business Times (Malaysia)](Business Times (Malaysia) Via Acquire Media NewsEdge) KUALA LUMPUR: MMC Corp Bhd and Gamuda Bhd will collect more than RM4 billion for playing the role of project manager for the Klang Valley MRT (KVMRT) Sungai Buloh-Kajang line. The amount will be paid to MMC Gamuda KVMRT (PDP) Sdn Bhd, a 50:50 joint-venture formed in December 2010. MMC Gamuda KVMRT was appointed as the project delivery partner (PDP) for the Sungai Buloh-Kajang line in February 2012. Its primary function is to deliver the 51km line within the agreed key performance index of target cost and completion date. The target cost would include the total work package contract value and reimbursables, which are capped at RM2.8 billion. Mass Rapid Transit Corp (MRT Corp) chief executive officer Datuk Wira Azhar Abdul Hamid said at a recent media briefing the Sungai Buloh-Kajang line's total cost will be RM30 billion. He said RM23 billion is for systems and construction, while RM7 billion includes consultant fees and reimbursables to the PDP. The line is scheduled for completion by July 2017, he added. If the Sungai Buloh-Kajang line is delivered within the agreed target cost, the PDP will be paid a fee equivalent to six per cent of the total work contract. Based on the systems and construction cost of RM23 billion, the PDP will receive RM1.38 billion. However, it will also be reimbursed for overheads, engineering consultancy, quantity surveying, system integration work and site investigation and topographical survey costs totalling RM2.85 billion. "Adding the reimbursables to the six per cent fees, the PDP will collect RM3.93 billion for playing the project manager role," said an analyst. The analyst also expects MMC and Gamuda's construction divisions to record higher pre-tax profit this year due to swifter Sungai Buloh-Kajang line work progress. The line is 47.63 per cent completed. As at June 30, the PDP has received fees and reimbursables amounting to RM1.03 billion from MRT Corp. The MMC-Gamuda joint-venture will also gain from a RM8.2 billion contract to design and build a 9.5km underground tunnel with seven stations for the Sungai Buloh-Kajang line. (c) 2014 The New Straits Times Press (Malaysia) Berhad. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |