By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on Julu 30, 2013
KUALA LUMPUR: The Ampang and Kelana Jaya light rail transit (LRT) line extension project has hit a snag and will only be completed earliest by the middle of 2016.
This means that the project, which was originally scheduled to be completed by end-2014, will be delayed by some 18 months.
It raises the alarm that the construction cost for both the Ampang and Kelana Jaya LRT line extensions would surpass RM8 billion, more than the original budget of RM7 billion.
Business Times understands that the delay is caused by the late award of contracts to some companies, including George Kent (M) Bhd, by the Minister of Finance Inc.
George Kent won a RM960 million contract for engineering, procurement, construction, testing and commissioning of system works for the Ampang LRT line. There was a 12-month delay in the awarding of the contract because of concerns raised by several parties on the company’s capability and resources.
It was reported that George Kent was unsuitable for the job as it did not fulfil the project's financial and technical requirements, which involved new rail works and an upgrade of the communications and signalling system for the entire rail network.
George Kent, which two months ago had its water concession in Papua New Guinea terminated, now has to play catch-up, said industry sources.
"The LRT line extension project will only be operational by late 2016 because of the delay in the awarding of contracts and some works carried out by certain contractors," a source said.
It is understood that French-based Thales Group as well as CMC Engineering and its partner, the United Kingdom's Colas, are slow in their works.
This raises concerns as yesterday, Thales inked a memorandum of understanding worth RM380 million with Malaysian Industry-Government Group for High Technology under the Defence Offset Programme for Keretapi Tanah Melayu Bhd for the provision of railway signalling simulator and equipment.
Thales won contracts from Syarikat Prasarana Negara Bhd, the project and asset owner of the LRT, to supply its signalling system, which is worth RM800 million, for the Kelana Jaya and Ampang LRT line extensions.
Thales claims that the civil work contractors involved in the project are delaying its package.
"The French group has no access to the site," a source said.
CMC and Colas, meanwhile, have only completed 25 per cent of their works because of delays in the system design engineering and access to the work site.
The two won a RM673.9 million contract in June 2011 to build an electro-mechanical system for the Kelana Jaya LRT line extension.
sharen@mediaprima.com.my
Published in NST on Julu 30, 2013
KUALA LUMPUR: The Ampang and Kelana Jaya light rail transit (LRT) line extension project has hit a snag and will only be completed earliest by the middle of 2016.
This means that the project, which was originally scheduled to be completed by end-2014, will be delayed by some 18 months.
It raises the alarm that the construction cost for both the Ampang and Kelana Jaya LRT line extensions would surpass RM8 billion, more than the original budget of RM7 billion.
Business Times understands that the delay is caused by the late award of contracts to some companies, including George Kent (M) Bhd, by the Minister of Finance Inc.
George Kent won a RM960 million contract for engineering, procurement, construction, testing and commissioning of system works for the Ampang LRT line. There was a 12-month delay in the awarding of the contract because of concerns raised by several parties on the company’s capability and resources.
It was reported that George Kent was unsuitable for the job as it did not fulfil the project's financial and technical requirements, which involved new rail works and an upgrade of the communications and signalling system for the entire rail network.
George Kent, which two months ago had its water concession in Papua New Guinea terminated, now has to play catch-up, said industry sources.
"The LRT line extension project will only be operational by late 2016 because of the delay in the awarding of contracts and some works carried out by certain contractors," a source said.
It is understood that French-based Thales Group as well as CMC Engineering and its partner, the United Kingdom's Colas, are slow in their works.
This raises concerns as yesterday, Thales inked a memorandum of understanding worth RM380 million with Malaysian Industry-Government Group for High Technology under the Defence Offset Programme for Keretapi Tanah Melayu Bhd for the provision of railway signalling simulator and equipment.
Thales won contracts from Syarikat Prasarana Negara Bhd, the project and asset owner of the LRT, to supply its signalling system, which is worth RM800 million, for the Kelana Jaya and Ampang LRT line extensions.
Thales claims that the civil work contractors involved in the project are delaying its package.
"The French group has no access to the site," a source said.
CMC and Colas, meanwhile, have only completed 25 per cent of their works because of delays in the system design engineering and access to the work site.
The two won a RM673.9 million contract in June 2011 to build an electro-mechanical system for the Kelana Jaya LRT line extension.
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