Monday, July 23, 2012

Ampang LRT job may not go to lowest bidder

By Sharen Kaur
sharen@nstp.com.my
Published in NST on July 20, 2012


KUALA LUMPUR: SYARIKAT Prasarana Negara Bhd said the government is not obliged to award the systems contract for the Ampang light rail transit (LRT) extension line project to the lowest bidder.

Prasarana media manager Azhar Ghazali said the totality of the offer will be considered, which among others, include the life cycle cost that will bring about reducing operating expenditures over equipment lifespan.

The best-fit solution will also be taken into account, the spin-off it could generate to the economy, and the knowledge gained by the local companies, Azhar said yesterday in a statement.

"As this project is not all about lowest price alone, all elements of evaluation parameters must be moderated so that the results willl reflect any qualifiers attached within.

"Leaked information found in the media recently did not give a full picture. Dated selective excerpts have been superseded by new information resulting from the clarifications.

"They did not do justice either by labelling certain activities as interference, when, what, were and are being done, are due diligence processes by the government," Azhar said.

Tenders for the systems contract for the Ampang line extension closed on June 16 2011.

Eight groups had made the bids, with prices ranging from RM950 million to RM1.45 billion.

They are George Kent-China Railway Construction-Tewet GmbH; Posco-Sojitz-Daewoo International-Thales; Invensys-Balfour Beatty Rail-Ingress; Colas-CMC Engineering-Thales; Samsung-LG-Thales; SNC Lavalin-WW Engineering-Bombardier; Siemens-Scomi Engineering and Ansaldo-Emrail-Leighton.

Azhar said because the systems work is a complex job, it involves a few rounds of deliberations to ensure all perspectives are given due recognition before the ultimate decision of awarding is reached.

In reaching for a decision, he said benefits from competitive project cost point of view, long-term operating expenditure savings solution for the operator, and the opportunity for local companies to prosper and lead the development must be articulately balanced.

As of to-date, he said there is yet a final decision on the award.

"An official announcement on the award would be made by the Ministry of Finance when all matters in regard to the contract had been considered and studied, he added.


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