Friday 29 Mar 2024
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KUALA LUMPUR (Oct 9): MMC Gamuda KVMRT (T) Sdn Bhd is welcome to participate in the international tender process for the unfinished underground work of the Mass Rapid Transit Line 2 (MRT2) project, Finance Minister Lim Guan Eng says today.

"The project continues. Hopefully at a cheaper price... It can still be [MMC-Gamuda] or any other company. [MMC-]Gamuda is welcome to bid for it," he told reporters on the sidelines of the "Malaysia: A New Dawn" conference here today.

Lim also stressed that MMC-Gamuda's offer to reduce the construction cost of the balance of the uncompleted underground works by RM2.3 billion, or 24%, to RM7.3 billion from RM9.6 billion currently is still "inadequate".

"The government believes we can get higher savings from [the international] open tender," he said, adding that no timeline has been confirmed for the exercise.

Yesterday, the joint venture (JV) company said it remained open to further discussions with the Ministry of Finance in reaching an agreeable reduction.

On Sunday, Lim announced that the government had decided to terminate the underground work contract of the MRT2 with MMC Gamuda KVMRT, a JV between Gamuda Bhd and MMC Corp Bhd, after the two parties failed to reach an agreement relating to the reduction of construction cost.

The minister also said MMC Gamuda KVMRT will receive compensation for work done for the completed portion of the underground works, although the details are yet to be finalised.

On MMC-Gamuda's statement yesterday that 20,000 jobs would be affected from the termination, Lim said: "We are not cancelling the project... I'm sure many of these workers can be re-employed by the contract award winner."

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