I thought LGE mention no cut on the stations underground?
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http://www.theedgemarkets.com/article/no-c...s-says-guan-eng



Should be cutting the station above ground?

Numbers of underground and above-ground stations will remain. But gov will retender underground stations to cut cost.

Yes but my initial reply is not to this latest LGE statement
but to the proposal made from Gamuda, want cut cost need to reduce number of stations. Read:

MEDIA STATEMENT

8 October 2018, Petaling Jaya
Reference is made to the Ministry of Finance’s (“MOF”) Media Statement dated 7 October 2018 in relation to the MRT 2 Project (“Project”).

Save and except for the aforesaid MOF Media Statement, MMC Gamuda has so far not received any communication nor notification from MRT Corp, the counter party to the award of the Project. Thus, there has been no official confirmation from MRT Corp that MMC Gamuda has been terminated as underground contractor.

Supportive of Government’s drive to improve fiscal health
In spite of the agreed contract price, in view of the present austerity measures pursued by the new administration and in support, in particular of the new Government’s review of its financial commitment on major infrastructure projects, MMC Gamuda has been engaged in discussions and negotiations with MOF over the past 2 months to review the scope of works and specifications of the Project with the aim of reaching a compromise on a cost reduction.

Following therefrom and at the request of MOF, MMC Gamuda has agreed to convert the Project Delivery Partner (PDP) model to a single Turnkey Contract for the elevated works with a price reduction of 23%. In respect of the underground works MMC Gamuda has so far offered a 24% reduction for the balance of the underground works. Through its Media Statement, MOF has informed that it has accepted the offer in respect of the elevated and system works only.

The offered reduction for underground works
The underground works awarded contract price is RM15.47bn. As progress achieved is now 40%, the balance of the uncompleted underground works is now valued at RM9.6bn. MMC Gamuda has offered a reduction of RM2.3bn which represents 24% of this value. The reduction is achieved through reducing the scope of works and lowering specifications for mechanical, electrical and architectural finishes of the stations. It was also achieved by reducing the number of entrances to stations and the number of active stations constructed. From a total number of 10 stations, 4 will currently be shelved.


Issued by MMC Gamuda
8 October 2018

More drama now.

Wow.. Just wow...
So MMC Gamuda is sitting on fat profit margin for the underground works... Since they didn't want to disclosed the actual cost to the consultant... Saying its trade secret 🙅

Now I want to know is... Who is the so called consulting firm involved?? 80 projects & 24 countries outside Malaysia.. Seems like some big international firm only...

+1

That's why we all want to know...
Why worried about disclosing the cost... Its not rockets science also... They worry if any others local contractors know the tunneling knowledge huh 😇

@icemanfx, mana u? What's your tp for gamuda? 1.8 or 1.9?

https://m.malaysiakini.com/news/446665


An open letter to MMC-Gamuda
Tony Pua
10 Oct 2018, 9:18 am (Updated 10 Oct 2018, 11:23 am)


MP SPEAKS | Dear directors of MMC-Gamuda, let me applaud you for putting up a great show since Finance Minister Lim Guan Eng announced the cabinet decision to:

(i) Accept the offer from MMC-Gamuda to reduce the cost of the MRT2 Above-ground works by RM5.2 billion to RM17.4 billion (23 percent reduction) in the form of a turnkey contract; and

(ii) Terminate the Underground contract as both parties could not reach an agreement on the required price reduction.


You have issued a letter proclaiming innocence, claiming that you were waiting for an offer from the Finance Ministry (MOF). You questioned the qualifications of the independent engineering consultant we have engaged. You implied that the decision to terminate was hasty and ill-conceived.

You sought sympathy, claiming the loss of jobs for no less than 20,000 people (wow!). Your social media actively promoted a campaign to “Save 20,000 Jobs”, asking Malaysians to sign the petition.

There are viral WhatsApp letters from first-class honours engineers regretting support for Pakatan Harapan in the last general election.

The performance and mobilisation of the above campaign are nothing short of impressive. The question of the cost of the project to the government was conveniently ignored.

We had no intention of engaging with you in a public war of words. We tend to reserve that for our political opponents. And after all, we wanted to continue the good working relationship to complete the RM17.42 billion worth of the above-ground works.



However, the obvious brazen attempt to paint yourself an innocent victim to an unjust Harapan government required a response to set the facts right and the record straight.

1. The original Underground contract was awarded for RM15.49 billion. MRT Corp awarded additional RM1.2 billion of variation orders which resulted in the revised contract value of RM16.71 billion.

2. After numerous meetings and discussions, you wrote to the minister on Aug 15, 2018, to offer a revised price of RM15.1 billion. This was mostly a result of shelving the two underground stations at Bandar Malaysia North and South.

3. Subsequently, on Sept 7, you offered to reduce the price further to RM14.58 billion for the Underground contract (making it RM32 billion for the entire MRT2 project). This represented a cost saving of RM2.13 billion or a 12.7 percent reduction. In the words of the Gamuda director at the meeting with the minister on Sept 4 – “we offer what we can offer, but anything beyond that will be meaningless to continue”.



4. However, based on the study by the independent engineering consultant, MRT Corp should expect total savings of between RM4.19 and RM5.79 billion for the estimated remaining 60 percent portion of works yet to be completed. Yes, this potential savings is just for the balance of works to be completed. Imagine the potential savings if it was for the entire contract.

So the question to be deliberated upon by this new Harapan government is very simple.

A. Do we say, “it’s OK lah, let’s just accept the RM2.13 billion reduction offered by MMC Gamuda”? After all, we can take this figure and boast to Malaysians of our "magnificent" achievement, for they would know no better that we might have left another RM2 billion of potential savings on the table. Furthermore, it will certainly save us the trouble of having to deal with the negative publicity and the new international tender exercise which has to be carried out. Too much work... or,

B. Do we honour the mandate and trust the people has given us and maximise the savings we can reasonably derive from the project? RM2 billion can pay for five hospitals, or 50 schools. RM2 billion is hell of a lot of money when I see my MOF colleagues who are struggling and scrimping to find RM50 million savings here, and RM80 million cuts there for the forthcoming 2019 Budget.

The cabinet obviously made the decision to pick the latter. And you seriously telling Malaysians to blame the cabinet for the termination?

Or would you pick a different target?

Or would you then pick a different target, as you implied in your media statement, that the independent consulting engineers aren’t sufficiently qualified – despite employing more than 500 staff with a track record of having completed more than 80 projects in 24 countries outside of Malaysia?



Or was it because the government-appointed independent consulting engineer exposed the frequently expounded lie that the cost of MRT1 and MRT2 are well below the average cost of construction of various Asian metros, because no one was actually able to substantiate the data provided?

Should we instead question why MMC Gamuda had initially agreed to, but subsequently refused to share costing data with the independent consulting engineer to justify its cost, claiming “trade secrets”?

To the 26-year-old first-class honours engineering graduate, I empathise the turbulence you are facing in your life today, which is due to no fault of yours. However, should Gamuda decide not to retain your services, it would only be their loss, because you would build an equally successful career in many other companies.


To the purported 20,000 workers who, according to MMC Gamuda, would lose their jobs as a result of the underground contract termination, let me emphasise that the Malaysian government is not terminating the project. You will find plenty of opportunities when the new project is awarded at a lower cost, while the savings generated would mean even more projects for the future.

But perhaps, instead of starting a petition on Change.org to seek the government to reverse its decision on the termination, it might be more productive to start a petition to ask your bosses at MMC Gamuda to make the government an offer it cannot refuse.

TONY PUA is the MP for Damansara and political secretary to the minister of finance.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

This post has been edited by nexona88: Oct 10 2018, 11:11 PM

So after losing rm3.5 billion market capitalization in pass 3 days, now only want to 'open book negotiation'...... with terms too..... lol

Ready my popcorn

http://www.theedgemarkets.com/article/rm2b-bridge-too-far

Gamuda wants to play hard balls with PH.....

die sie….earlier got jibbys backing....get contracts like getting water nia…...now need to beg for jobs, cut margin.....

the worse part....we all knew already....water already out to relevant parties cannot get back...now need to summore cut cost....

well, you deal with devil, need to know how hell works.

Well they thought give 2bil cut.. PH gomen would be happy... The JV also happy, can still keep their fat profit margin..

See see look look, PH gomen want 4bil cut... Walao.. This one cannot accept.. Confirmed eat into their profit.. Make drama.. 20k job loses etc. Play bumi Malay Islam sentiment...

Yes, under table lui given.

Secret, secret ma.

I dun allow u say dis, we shd feel thankful to them

thankful to Gamuda??????

there are many firms (locals and overseas) can do this job lah…….

biasa lah….in Malaysia, its not about what you know, its about who you know.

I mean the 10% in one day yaa 🙊🙊 later eat curry rice for lunch celebrate

MMC-Gamuda has retained its contract to build the entire MRT2 project after agreeing to cut RM3.6 billion in costs for the underground half of the line.

Finance Minister Lim Guan Eng said as a result of this, the construction cost for MRT2 - excluding interest, land acquisition, and other costs - has been reduced by RM8.82 billion or 22.4 percent from RM39.95 billion or RM30.53 billion.

"The final cost savings of RM8.82 billion or 22.4 percent for MRT2 will reduce future fares that need to be paid by MRT users, which would inadvertently increase the usage of public transportation in the Klang Valley.

"Today, the cabinet has agreed to MMC-Gamuda’s new offer and the cost rationalisation exercise.

"All above-ground stations will continue to be built as planned earlier while two underground stations - Bandar Malaysia (North) and Bandar Malaysia (South) - will be postponed, bringing the total number of stations from the original 35 to 33 now,"
Read more here >>> https://www.malaysiakini.com/news/449094

luckily no remove cyberjaya

wonder why LRT3 such a drastic change but MRT2 only removed 2 ghost stations?

don't worry lah...who dares to touch dr. M baby?????? hit a fly on tiger head meh.....

should remove more station..
then lower cost.. muahahaha...

now MMC-Gamuda should not cry baby saying 20k jobs gone

so now should be no more delay right.. since the same contractors.. No fresh bidding tenders

This post has been edited by nexona88: Oct 26 2018, 06:14 PM