By Sharen Kaur
sharen@nstp.com.my
Published in NST on May 21, 2012
The contract comprises the design and construction of the infrastructure and systems works for the entire 329km alignment of the EDTP. MMC-Gamuda had awarded the systems contract to Balfour Beatty Rail Ansaldo Systems JV Sdn Bhd.
A source said the total project cost is expected to escalate to about RM14 billion because of the two-year delay.
It is believed that MMC-Gamuda will submit the VO claims to the government later. The source said there is already cost overrun for the project, which is halfway completed.
“The civil works are 70 per cent completed, and the systems side, only 30 per cent. There are still land issues and other unresolved matters on MMC-Gamuda JV’s part.
“For Balfour Beatty-Ansaldo, they are still awaiting approval for the systems part. No signaling and electrification systems have been installed, except for concrete poles in isolated areas,” said a source.
People familiar with the dealings in Balfour Beatty-Ansaldo confirmed that the joint venture has not received approval for the systems part.
“We think this is going to be another case like the Rawang-Ipoh EDTP, which took more than seven years to complete. The project cost had escalated from RM4.2 billion to RM6.3 billion,” the source said.
When contacted, Gamuda Bhd executive director Datuk Ng Lee Leen declined to comment as he was overseas.
MMC-Gamuda project director Datuk Mohd Nor Idrus also did not return calls made by Business Times.
Transport Minister Datuk Seri Kong Cho Ha, when asked about the extension for the project completion, stuck to the 2014 deadline.
He said the northern sector EDTP project would be completed in two phases, to Butterworth and Padang Besar.
"The first phase is expected to be completed by the end of next year, and the second phase in 2014," Kong told Business Times.
Among factors for variation order claims include incorrect estimation of the project's work; the obstacles that the customer or project team discovers that require deviation from the original plan; or additional money, time, or resources to be added to the project.
The northern sector EDTP is important for loss-making Keretapi Tanah Melayu Bhd (KTMB), the national railway company. Freight is currently KTMB's biggest money earner, with the northern section contributing over 70 per cent to its revenue.
When completed, the northern sector of the EDTP will cut travel time from Penang to Kuala Lumpur by threefold from nine hours currently.
sharen@nstp.com.my
Published in NST on May 21, 2012
The Ipoh-Padang Besar Electrified Double Track project (EDTP) has hit a snag over price due to cost overrun and the main contractor may ask RM1.5 billion in variation order (VO) claims from the government, people familiar with the matter said.
It is understood that MMC-Gamuda Joint Venture Sdn Bhd, the main contractor for the project, has also asked the government to extend the time to complete the job to 2015 or 2016.
Sources said the government has yet to approve the extension request.
MMC-Gamuda was awarded the northern sector EDTP contract in December 2007 for RM12.49 billion. The job was initially slated for completion in January 2013, but due to impending land acquisition issues, the government has given an extension for the project completion until end-2014.
It is understood that MMC-Gamuda Joint Venture Sdn Bhd, the main contractor for the project, has also asked the government to extend the time to complete the job to 2015 or 2016.
Sources said the government has yet to approve the extension request.
MMC-Gamuda was awarded the northern sector EDTP contract in December 2007 for RM12.49 billion. The job was initially slated for completion in January 2013, but due to impending land acquisition issues, the government has given an extension for the project completion until end-2014.
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A source said the total project cost is expected to escalate to about RM14 billion because of the two-year delay.
It is believed that MMC-Gamuda will submit the VO claims to the government later. The source said there is already cost overrun for the project, which is halfway completed.
“The civil works are 70 per cent completed, and the systems side, only 30 per cent. There are still land issues and other unresolved matters on MMC-Gamuda JV’s part.
“For Balfour Beatty-Ansaldo, they are still awaiting approval for the systems part. No signaling and electrification systems have been installed, except for concrete poles in isolated areas,” said a source.
People familiar with the dealings in Balfour Beatty-Ansaldo confirmed that the joint venture has not received approval for the systems part.
“We think this is going to be another case like the Rawang-Ipoh EDTP, which took more than seven years to complete. The project cost had escalated from RM4.2 billion to RM6.3 billion,” the source said.
When contacted, Gamuda Bhd executive director Datuk Ng Lee Leen declined to comment as he was overseas.
MMC-Gamuda project director Datuk Mohd Nor Idrus also did not return calls made by Business Times.
Transport Minister Datuk Seri Kong Cho Ha, when asked about the extension for the project completion, stuck to the 2014 deadline.
He said the northern sector EDTP project would be completed in two phases, to Butterworth and Padang Besar.
"The first phase is expected to be completed by the end of next year, and the second phase in 2014," Kong told Business Times.
Among factors for variation order claims include incorrect estimation of the project's work; the obstacles that the customer or project team discovers that require deviation from the original plan; or additional money, time, or resources to be added to the project.
The northern sector EDTP is important for loss-making Keretapi Tanah Melayu Bhd (KTMB), the national railway company. Freight is currently KTMB's biggest money earner, with the northern section contributing over 70 per cent to its revenue.
When completed, the northern sector of the EDTP will cut travel time from Penang to Kuala Lumpur by threefold from nine hours currently.
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