Khairy says Gamuda should not get free pass to MRT project

Umno Youth chief Khairy Jamaluddin spoke up today against a Gamuda-MMC joint venture being awarded without competitive bids for the massive RM43 billion KL MRT project.

He also mocked the proposed “Swiss Challenge” philosophy of inviting rival tenders for the project, pointing out on his Twitter page that MMC-Gamuda had “Swiss-cheesed” the Smart Tunnel and double tracking projects.

The construction of the KL Smart Tunnel and the Ipoh-Padang Besar double tracking are two of the joint venture’s previous public infrastructure projects.

Gamuda-MMC had recently submitted an unsolicited bid to build a new MRT system for the city.

It has received “positive” backing from Prime Minister Datuk Seri Najib Razak, although some senior government officials have baulked at the high cost.

In a number of messages on Twitter today, Khairy called instead for an open tender to be conducted if the government wanted to go ahead with building an MRT system for the city.

“KL MRT needs to be open tender. EPU-Treasury release request for proposals. Make it benchmark for future projects/procurement,” he tweeted at about noon today.

The Malaysian Insider had reported that the unsolicited bid comes with the use of a “Swiss Challenge” philosophy to tender the project out, with MMC-Gamuda maintaining an advantage in being awarded the contract.

A Swiss Challenge is a form of public procurement in usually less-developed countries, where public authorities receiving an unsolicited bid for a project invites third parties to match or exceed it.

The public authority would also usually give the original proponent an advantage in a competitive bidding process.

Using this principle, competitive bids would have to be substantially lower or more cost-effective to defeat any proposal from MMC-Gamuda.

Government-owned UEM Group Berhad today indicated interest in submitting a rival bid for the massive RM43 billion KL MRT project, should it be opened for tender.

UEM group managing director and chief executive officer Datuk Izzaddin Idris, said today that there is “no reason not to bid” if the contract is awarded through an open tender, in response to a question on whether UEM would be interested in submitting a bid.

A bid from UEM would help fulfil the criteria for competitive bidding under the Swiss Challenge.

Khairy had also admitted the need for the MRT system but added that a project of such scale should be awarded fairly.

“We need a new MRT. I have no doubt about need. But award properly. Move away from legacy,” he said further in a tweet posting.

Gamuda Berhad is already pressing ahead with its plans and expects a decision in the next two to three months, with work commencing early next year.

Khairy, however, appears sceptical about Gamuda’s ability to run the project, again expressing his view through Twitter.com.

“Can’t do RM40 plus billion via Gamuda-MMC ‘Swiss challenge’ or whatever. They’ve already Swiss cheesed Smart tunnel & double tracking,” he tweeted.



comments


RM43 billions KLMRT without bidding because the Real Cost is not determined subject to variations and adjustments on incremental costs(real and artificial) basis.

Sure win project because all costs incurred will pass on to the end users Rakyat and project once started can not be abandoned because of National Pride.

Open tender should not be by locals only for a competitive bid.

Learn from the experience of STAR/PUTRA and the existing transport system and JAM.

khairy....Now that your father in law is no longer PM and you out of 4th floor, you cry foul about open tender.Have you not heard the saying what goes around comes around! That is the irony. I hope you are sincere about this call and not out of spike!

Oh come on! I know he is trying to look outspoken these days. He just showing his anger because he got no position in the government. You will see how he can turn silent once PM offered him post in the ministry. I bet! UMNO is still UMNO. Never fall to their holes.