Double-track project will complete on schedule, says MMC-Gamuda JV

KUALA LUMPUR: MMC-Gamuda Joint Venture Sdn Bhd said on Wednesday, May 5 it is confident of completing the CONSTRUCTION [] of the RM12.49 billion Ipoh-Padang Besar electrified double tracking project (EDTP) on schedule by December 2013 without any increases in costs.

"We want to meet the target date of December 2013," EDTP's executive director Datuk Ir Azmi Mat Nor told reporters here on Wednesday at a progress briefing.

On any unexpected increase in the cost of building materials, he said it had hedged three quarters of the required raw materials and that if the scope of work remained the same, the company "will bear the extra costs", if any.

To a question on whether it foresaw any possibility of any increase in costs, Azmi said: "So far, so good". The company has so far spent RM2 billion to purchase raw materials such as concrete products, quarry materials, steel products, plant, machineries and others.

Azmi said the company had received about 43% of the RM12.49 billion contractual value from the government, in line with the progress of the project.

It has completed about 43% of the physical works and construction of the 329km railway track is taking place simultaneously in the four states involved — Perak, Penang, Kedah and Perlis.

"The impact of the EDTP on the construction industry is far reaching. The multiplier effect from work packages and jobs awarded by the EDTP would generate an estimated RM25 billion worth of downstream economic activities. The multiplier effect is probably one of the biggest money-spinners to benefit the four states," Azmi said.

"Gross domestic product contribution (at current price statistics and assumption there are no leakages) from the EDTP is 0.75% average over the project's six year period".

Azmi said MMC-Gamuda JV had already awarded 540 or 90% of work packages to 310 sub-contractors and suppliers to date for various stages of construction which comprises earthworks, piling, structural works, systems and electrification, mechanical and electrical, communications and bridge works.

It has hired 170 bumiputera subcontractors ranging from Class A to Class F with a total of 350 work packages — each of which is valued at RM1 million to RM1 billion.

To date, the total contracts awarded amounts to RM4.1 billion — which is more than 30% of total contract value, it said.

Azmi also said MMC-Gamuda JV had terminated the services of nearly 30 contractors which did not adhere to its standards.

The project will create a total of 90,000 jobs with 95% of them going to Malaysians, the rest comprising hard labour jobs will go to foreigners, while all professional jobs were sourced from within the country, it said.

"We have hired 3,000 engineers. Even before these engineers graduate, we have interviewed and head hunted them from local universities. Our local engineers — they are superb," Azmi said.

On land acquisition matters, Azmi said: "So far, we've got good cooperation from the federal and state governments. Any compensation for land to local residents are paid (by the government) at market prices. If it is market prices, they will move voluntarily".