Putrajaya overrules Prasarana, takes pricier LRT extension deal

A source pronounced Hartasuma-Bombardiers bid of RM890 million is almost 50 per cent aloft than which of a lowest bid. frohsz.de pic

KUALA LUMPUR, June 17 A Finance Ministry cabinet has abandoned a citys light rail transit (LRT) operators letter of reference for a Kelana Jaya line extension plan by awarding it to a company whose plan price of RM890 million is almost 50 per cent aloft than which of a lowest bid.

The Malaysian Insider understands a cabinet preference was done upon Wednesday to palm a electro-mechanical system plan to a Hartasuma Sdn Bhd-Bombardier joint-venture, which is already facing a heavy penalty for late smoothness of a RM1.2 billion 35 four-car sets to Syarikat Prasarana Negara Bhd.

The Bombardier Group was a strange retailer of a 35 Mark II Bombardier Advanced Rapid Transit (ART) two-car trains when a Kelana Jaya line opened in 1998. The first three sets of a four-car trains eventually began operation in December 2009, after being behind from Aug 2008.

All bids are technically a same though Prasarana had recommended Ingress Corp Bhd-Balfour Beatty Rail Sdn Bhd, which put in a bid of RM610 million, a lowest opposite Hartasuma-Bombardiers RM890 million, which is a highest, a source told The Malaysian Insider.

The other frontrunner for a plan was CMC Engineering Sdn Bhd as well as UKs Colas (CMC-Colas) which had a RM670 million bid for a 17km-long extension from Kelana Jaya to Subang Jaya.

It is learnt a Finance Ministry cabinet preference has caused a little fluster in between Prasarana as well as its consultants as Hartasuma-Bombardier has also not complied with a single condition of a proposal issued final year a 10 per cent limit of liability upon potential damages.

Other bidders complied though Bombardier has refused to determine to a commercial condition. No a single knows what is starting on, an one more source told The Ma laysian Insider.

The attention source familiar with a proposal pronounced a bids did not include a price of Bombardiers proprietary Linear Induction Motor (Lim) rail system which powers a trains.

During a proposal process, Prasarana private a supply of proprietary apparatus from a proposal range to safeguard there was fair foe for a bidders, he said, adding a Lim apparatus is estimated to price a little RM50 million nonetheless Hartasuma-Bombardier have nonetheless to give any quotes.

The source pronounced Prasarana as well as their consultants have been on top of board in creation a letter of reference nonetheless a final preference lay with a ministry cabinet which has a power to approve projects worth more than RM300 million.

It right away appears which a Ministry of Finance is approving Hartasuma-Bombardiers bid for a premium of RM280 million as well as a price of a LIM rail while accepting reduction favourable commercial terms, he added.

Prasarana is spending a little RM7 billion for a extension of both a Kelana Jaya as well as Ampang LRT rail networks. The Ampang network will be lengthened by an one more 17.7km.

The wholly-owned unit of a Finance Ministry was forced to cave in to vigour from Malay rights groups final month when it revised pre-qualification criteria for several building a whole packages for a Klang Valley Mass Rapid Transit (MRT) by permitting joint-ventures or consortiums.

It had upon Mar thirty imposed one more criteria upon contractors taking part in a plan proposal which disallowed them from combining corner ventures or consortiums. Perkasa, however, indicted Prasarana of blocking Bumiputera contractors from participating by enforcing strict discipline which would usually benefited rich non-Bumis, saying which plan smoothness partner MMC-Gamuda was looting as well as monopolising a project.

The MRT is expected to be a largest-ever building a whole plan in Malaysia as well as had progressing been estimated to price in between R! M36 bill ion as well as RM53 billion.

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