Focus View
Appoint intl. consultant to settle cost dispute
FocusM | 12 Oct 2018 00:30
The war of words between MMCGamuda and the government over the termination of the underground portion of the MRT2 project could have been avoided if there had been better understanding of the issues.

Right from the beginning, the government should have clearly explained the reasons for the termination instead of later responding to the claims by MMC-Gamuda on why the project should not have been stopped abruptly.

MMC-Gamuda had said it was willing to negotiate a further cost reduction from the original RM16.71 bil. The company has offered a reduction of RM2.3 bil but the government felt this was insufficient.

The company says it is meaningless to continue the project beyond the RM2.3 bil cost reduction it could offer. Strangely, MMC-Gamuda has not been told what an acceptable cost reduction figure would be.

The government had only earlier this month accepted the company’s RM5.22 bil cost reduction offer for the above ground portion of the MRT2 project. It was reduced from RM22.64 bil to RM17.42 bil. This shows it is possible to reach an agreement on cost reduction. So why not for the underground portion, too?