Posted by Ron90 > 2018-10-09 02:14 | Report Abuse

at last jibby sounds more rational than this dumb LGE !!!

Posted by 4444 > 2018-10-09 03:07 | Report Abuse

Govt rejected 24% reduction of construction cost on MRT2 underground works
https://www.theedgemarkets.com/article/govt-rejected-24-reduction-construction-cost-mrt2-underground-works

Posted by 5354 > 2018-10-09 03:53 | Report Abuse

Bitter but neccessary medicine to cut RM 1 trillion debts.

Posted by GreatDreamer > 2018-10-09 04:40 | Report Abuse

Gamuda is our nation Champion in Tunneling Engineering Work. That why it dare to say no to MOF. LGE want to bully nation Champion wont be easy. Soon LGE will U-Turn.

Posted by ks5S > 2018-10-09 06:16 | Report Abuse

Gamuda is already dead. Msia dont need tunnel specialist. Everyday korek only. Even tax money they also korek . Kasi tutup ini crony company.

Posted by Shines > 2018-10-09 06:59 | Report Abuse

Both got to compromise a bit more, reduce a bit more and MOF back step a bit more, it will be a win win situation.

Posted by gsi723 > 2018-10-09 07:01 | Report Abuse

LGE, acting like opposition, talk big... Now same standard with Ahmad maslan

Posted by trulyinvest > 2018-10-09 07:07 | Report Abuse

Even gave back to gamuda but reduced profit margin. Apa guna. Kerja saje ada, tapi untung x rak. Sell

Posted by Shines > 2018-10-09 07:14 | Report Abuse

Be humble this time, who knows once in the good book of MOF, Gamuda maybe compensated with other projects later years. The shares price will make a u-turn and this is the immediate gain for all

Posted by Victor Yong > 2018-10-09 07:26 | Report Abuse

:)

MRT Corp: MRT2 underground works re-tendering will be complex

MRT Corp chief executive officer Datuk Seri Shahril Mokhtar said the underground works for the MRT2 project is already at 39 per cent completed, and as such, its termination and retendering will be ‘relatively complex’. NSTP photo by ABDULLAH YUSOF

By NST Business - October 8, 2018 @ 9:45pm
KUALA LUMPUR: Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said today the underground works for the MRT2 project is already at 39 per cent completed, and as such, its termination and retendering will be ‘relatively complex’.


MRT Corp will now have to review the overall construction timeline for MRT2, also known as the Sungai Buloh-Serdang-Putrajaya (SSP) line, following the Government’s decision to change the project structure.

“As a result of (the change) and the move from the project delivery partner (PDP) model to that of a turnkey contract for the elevated works, the overall construction timeline for the SSP Line will have to be reviewed,” said MRT Corp chief executive officer Datuk Seri Shahril Mokhtar in a statement today.

Shahril was responding to Finance Minister Lim Guan Eng's announcement, yesterday, that the government will be re-tendering unfinished underground works of MRT2.

Lim also said that MMC Gamuda KVMRT (T) Sdn Bhd, a joint-venture between Gamuda Bhd and MMC Corp Bhd, will complete the above ground works of the MRT2 project as a turnkey contractor at a cost of RM17.42 billion, 23 per cent lower than the original cost of RM22.64 billion.

Shahril noted the cost reduction for the 38.7km elevated section of the SSP Line was significant and represented good savings for the government and taxpayer.

The above ground works is 30 per cent into completion and MRT Corp welcomes the Government’s decision to change the project structure from the PDP model to that of turnkey contractor.

He added that the scope reduction involved in the cost rationalisation exercise that was carried out did not involve reducing the number of elevated stations, which remains at 24.

For the underground works, Shahril said MRT Corp would urgently work towards getting the new tender exercise off the ground.

“As with all previous tenders carried out by MRT Corp, we will ensure that the re-tendering process is absolutely transparent,” he said.

Shahril said MRT Corp’s immediate concern was to ensure that all project sites, both above and below ground, were safe so that they would not pose any risk to the public and surrounding buildings.

--THE END--

Posted by shareinvestor88 > 2018-10-09 07:26 | Report Abuse

Sell , TP 1.00

Posted by Victor Yong > 2018-10-09 07:26 | Report Abuse

Buy3 :)

MMC Gamuda says 20,000 jobs at stake, invites govt to come back to negotiation table over MRT2



Posted on 8 October 2018 - 11:27pm
PETALING JAYA: MMC Corp Bhd and Gamuda Bhd Joint Venture (MMC Gamuda) is asking the government to reconsider its decision to terminate the underground works contract for Mass Rapid Transit 2 (MRT2) citing exposure to a flood of lawsuits, the loss of more than 20,000 jobs and a review by a local engineering consulting firm which lacked the relevant experience to do so.

In an invitation to the government to come back to the negotiation table, the group suggested that an international engineering consulting firm with the relevant experience be appointed to carry out an objective review looking into all reasonable engineering and technical requirements, to re-examine components from where savings could be derived and narrow the differences.

MMC Gamuda said the Finance Ministry's belief that it could offer more reduction for the underground works is premised on the review by a local engineering consulting firm, of which a significant part was refuted by MMC Gamuda on technical grounds, for lack of relevant experience and being too simplistic.

"Ironically, MRT Corp which has a huge staff of experienced technical experts also issued their own report of the aforesaid consulting firm's proposals on Aug 27 2018, which carried similar views as MMC Gamuda," it said in a statement released today.

MMC Gamuda had offered to reduce the uncompleted underground works portion of RM9.6 billion by RM2.3 billion following two months of negotiations. This was by reducing the scope of works and lowering specifications for mechanical, electrical and architectural finishes of the stations and reducing the number of entrances to stations and the number of stations constructed, from 10 to six.

In explaining the factors influencing the underground works contract pricing, the group said it was largely due to MRT Corp's and safety requirements.

MMC Gamuda said MRT Corp's requirements increased the work scope significantly compared with MRT1, while the high risk of sinkholes from tunnelling led to it having to meet extremely stringent risk management requirements in order for insurers to insure the project for MRT Corp.

The group said a termination at this point, when it has completed 40% of works, would unjustifiably expose it to a flood of lawsuits for compensation from terminated employees, sub-contractors, suppliers and manufacturers, among others. It would also mean immediate job losses to a workforce of over 20,000 personnel involved in the underground works from a supply chain of over 600 Malaysian companies.

"Of the 20,000, over 3,000 are made up of MMC-Gamuda JV staff, and of this, more than 60% are bumiputra. This will cause unnecessary hardship to a significant number of the Malaysian workforce in an already slowing market."

Considering that the Finance Ministry's requirement for the retendering is for foreign contractors, these jobs will only be given to a foreign contractor who in turn will use experienced staff from its own country.

MRT Corp awarded the undergrounds works to MMC Gamuda in 2016 following an international competitive tender that, due to the challenging ground conditions, had stringent prequalification requirements with only five contractors prequalified by MRT Corp to tender, of which MMC Gamuda was the only local bidder.

The bids were evaluated by the Reference Design Consultant, Arup Singapore Pte Ltd, appointed by MRT Corp. MMC Gamuda's bid had the highest technical score and offered the lowest price, below even the pretender estimate prepared by Arup Singapore.

MRT Corp in a separate statement said it accepts and welcomes the government's decision to switch the model from project delivery partner to turnkey contractor for the elevated portion of MRT2 while terminating the current contractor for underground works, and for it to be retendered.

Elevated works are 30% complete, and underground works 39%. The cost rationalisation exercise does not involve reducing the planned number of elevated stations, which is 24.

Posted by Victor Yong > 2018-10-09 07:27 | Report Abuse

Shahril said MRT Corp’s immediate concern was to ensure that all project sites, both above and below ground, were safe so that they would not pose any risk to the public and surrounding buildings.

Posted by Victor Yong > 2018-10-09 07:28 | Report Abuse

Susah Susah nak retendering :)

By NST Business - October 8, 2018 @ 9:45pm
KUALA LUMPUR: Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said today the underground works for the MRT2 project is already at 39 per cent completed, and as such, its termination and retendering will be ‘relatively complex’.

Posted by Victor Yong > 2018-10-09 07:29 | Report Abuse

Cabinet will change the decision to further negotiation, etc, wait n see :)

Posted by Gc1234 > 2018-10-09 07:33 | Report Abuse

Terminate Gamuna contract in malaysia. Is like Korea cancel Samsung contract because they are not supporting malaysia workers

Posted by khatulistiwa1234 > 2018-10-09 07:34 |

Post removed.Why?

Posted by khatulistiwa1234 > 2018-10-09 07:36 | Report Abuse

TOP GUY GAMUDA will declare LOSE , if not GAMUDA will plunged further , the dating is cruel , but REGION MAHATHIR not joke , you gonna to listen also , if not , possible 1.50 also touch , i admire OLD HORSE rhythm play , in term politic drama .

Posted by ehtan > 2018-10-09 07:37 | Report Abuse

EPF also own more than 10% of gamuda shares. yesterday loss rm210mil with the drop of 0.78 for the share price.

Posted by ehtan > 2018-10-09 07:38 | Report Abuse

this year less dividend liao... miss the Ajib era...

Posted by Victor Yong > 2018-10-09 07:40 | Report Abuse

:)

MMC-Gamuda holds out for solution
BUSINESS NEWS
Tuesday, 9 Oct 2018

by daniel khoo


Under review: MMC-Gamuda was given the mandate to see the completion of the MRT2 as the project delivery partner in February 2014. However after the change in government in May this year, the project came under review.
Under review: MMC-Gamuda was given the mandate to see the completion of the MRT2 as the project delivery partner in February 2014. However after the change in government in May this year, the project came under review.

PETALING JAYA: The MMC-Gamuda joint venture (JV) is holding out for an amicable settlement with the government in regard to the mass rapid transit phase two (MRT2) project.

It said in a statement that the underground portion of the project was 40% completed and it had already offered a RM2.3bil reduction in the price of the underground works that was awarded to the JV at a cost of RM15.47bil in 2016.


“The balance of the uncompleted underground work is valued at RM9.6bil. MMC-Gamuda has offered a reduction of RM2.3bil, which represents 24% of this value.

“Even though the Finance Ministry (MoF) has made known that the offered reduction of RM2.3bil is still not adequate, to date, it has not been conveyed to MMC-Gamuda an acceptable target figure that the MoF has in mind. If the target figure is made known together with the components of the savings as individual items, both parties would be placed in a better position to re-examine these components from where savings could be derived and narrow the differences,” MMC-Gamuda said in the statement.

MMC-Gamuda was given the mandate to see the completion of the MRT2 as the project delivery partner (PDP) in February 2014 at an initial cost of RM28bil.

After the change in government in May this year, the project came under review.

However, the MoF disclosed on Sunday that the cost had almost doubled to RM56.93bil due to various factors such as changes in the rail alignment and the depreciation of the ringgit to the US dollar.

The ministry also said that the contract for the underground works in MRT2 awarded to MMC-Gamuda had been terminated.

However, it (the ministry) has accepted the JV’s offer to undertake the above-ground works for RM17.42bil and as a turnkey contractor instead.

The MoF said it had been guided by a consulting firm in arriving at a decision to terminate the underground contract and call for an international tender to reduce the cost.

MMC-Gamuda said that it had not been notified of the termination and changes in the terms of the contract.

The JV also said that it had been engaged in discussions and negotiations with the MoF over the past two months to review the scope of works and specifications of the project with the aim of reaching a compromise on cost reduction.

“In respect of the underground works, MMC-Gamuda has so far offered a 24% reduction for the balance of the underground works,” it said.

In order to bridge the gap on the pricing, MMC-Gamuda had on three occasions in the last two months urged the MoF to appoint an international engineering consulting firm with the relevant experience to carry out an objective review looking into all reasonable engineering and technical requirements.

“The appointment of an international engineering consulting firm as proposed by MMC-Gamuda would greatly facilitate this exercise,” it added.

The companies said that the underground works was awarded to them in 2016 after an international competitive tender that, due to the challenging ground conditions, had stringent pre-qualification requirements with only five contractors being pre-qualified by MRT Corp Sdn Bhd to tender.

Of the five, MMC-Gamuda was the only local contractor, it said.

The bids were evaluated by the reference design consultant, Arup Singapore Pte Ltd, which was appointed by MRT Corp.

MMC-Gamuda said its bid scored the highest technical score and offered the lowest price.

The JV Co also listed several other reasons why the termination may not be the best solution.

Among them are:

> During the initial tender process, MMC-Gamuda had submitted a proposal with a lower cost without compromising the safety, performance and functionality of the operational railway. It said that however, MRT Corp opted not to accept the alternative offered by MMC-Gamuda. The reductions currently on offer to the MoF include some of these alternatives, but only those applicable to the balance of the underground works.

> There is a high risk of sinkholes due to tunneling through the city centre. MMC-Gamuda’s continued in-house developments and customisation of the tunnel boring machines is an integral part of managing this risk against sinkholes that proved successful in MRT Line 1.

> All 19 sites are active with 40% of the works completed.

Posted by lamchinfah1960 > 2018-10-09 07:42 | Report Abuse

bad news for those bought earlier and good news for those waiting to go in , buy and keep for uptrend.

Posted by khatulistiwa1234 > 2018-10-09 07:43 | Report Abuse

UMNO LEAD in WATER DEEP FIRE HOT stage , all in trouble source , CHAIRMAN now also involve scandal , need to answer CORRUPTION division question answer session coming FRIDAY , all because OLD HORSE decade cruel practice , changed environment only , deteriorate to FINAL .

Posted by khatulistiwa1234 > 2018-10-09 07:45 |

Post removed.Why?

Posted by khatulistiwa1234 > 2018-10-09 07:47 | Report Abuse

Bowl RICE all in Strength party delegate the portion , you reserve how much , will soon , on air .

Posted by khatulistiwa1234 > 2018-10-09 07:49 | Report Abuse

For me , GAMUDA chain DRAGON HEAD position fate is finally gone with CURRENT GOVERNMENT , one earth cannot LEAVE two giant is truth , GIVE AND TAKE is impossible , one will LOSE completely is the REALITY answer , let us see which is the champion instead .

Posted by JN88 > 2018-10-09 07:53 | Report Abuse

Many people can't read.

Posted by khatulistiwa1234 > 2018-10-09 07:55 | Report Abuse

My view , Gamuda top guy need soft defense all right , he just have one solution to sacrifice in all corner tackle , listen and also listen , slave to new government , pretend all listen is the last weapon , i doubt ,very fast , rebound back is the actual outcome , only become GOOD FOLLOWER , will benefit all party .

Posted by khatulistiwa1234 > 2018-10-09 08:00 | Report Abuse

if you bet on BN , i wish you fast go meet hell king instead , we all in the MERCURY TEMPERATURE , GONE CASE .

Posted by khatulistiwa1234 > 2018-10-09 08:01 | Report Abuse

ONE THOUSAND MILLION BAD DEBT , WHO GOING TO PAY THE BILL , answer is your GRAND SON AND GENERATION BARE .OK

Posted by khatulistiwa1234 > 2018-10-09 08:07 |

Post removed.Why?

Posted by khatulistiwa1234 > 2018-10-09 08:08 | Report Abuse

NEW ERA IS ANWAR DECADE .

Posted by ks5S > 2018-10-09 08:08 | Report Abuse

Conclusion is pn17 .

Posted by pang72 > 2018-10-09 08:09 | Report Abuse

If hands drop another 80cents, klci collapse..

Posted by khatulistiwa1234 > 2018-10-09 08:10 | Report Abuse

NEXT TIME , CLEAR AND TRANSPARENT POLICY prantice in all aspect GOVERNMENT TENDER , fair and square .

Posted by khatulistiwa1234 > 2018-10-09 08:10 | Report Abuse

LUTSINAR .

Posted by khatulistiwa1234 > 2018-10-09 08:11 | Report Abuse

GLUT ANWAR we call .

Posted by khatulistiwa1234 > 2018-10-09 08:11 | Report Abuse

SAY NOT BRIBE TO ALL , ORE WILL SMOOTH RAPID UP .

Posted by ks5S > 2018-10-09 08:11 | Report Abuse

Pagi pagi gamuda kena curse. Sure gap down 50 sen when open.

Posted by stockraider > 2018-10-09 08:13 | Report Abuse

U need to understand these loh....!!

Even if Gamuda got back their tunnel jobs, it will never be the same again loh...!!

1. There will be substantial discount given to secure jobs, and this will affect its construction margin loh....!!
2. The lost of PDP, means there is a big lost of steady & safe income which affect its bottom line loh....!!
3. The big discount given on elevated MRT for securing the jobs means another big cut in its construction margin mah....!!

The other scenario , If Gamuda do not get back its tunnel jobs, it will means chaos to its business loh....!!

1. Heavy overheads, subcontractors issue, valuation of half way works etc....!!
2. The use of foreign tunneling contractors will also create competitors to its business loh.....!!

Thus the overall business model of Gamuda is no longer as lucrative as b4 bcos of govt cost down loh....!!

Overall it is bad news for Gamuda loh..!!, thats why mkt selldown loh....!!

Posted by pang72 > 2018-10-09 08:15 | Report Abuse

Time to make the market crash..
Start from Gamuda!

Posted by khatulistiwa1234 > 2018-10-09 08:17 | Report Abuse

Today continue plunged , as i know OLD HORSE , his steering pattern , not shiver things he conscious , plunged is further , heading and heading south is fitted .

Posted by khatulistiwa1234 > 2018-10-09 08:19 | Report Abuse

Clear picture , ROLE player old horse is not a ROMAN , people already know him , LONG TIME AGO , wind cloud recovery impossible , WEAKEN is confirm .

Posted by khatulistiwa1234 > 2018-10-09 08:20 | Report Abuse

GAMUDA in SUNSET ROUTINE .

Posted by khatulistiwa1234 > 2018-10-09 08:20 | Report Abuse

BREACH , BEAKER .

Posted by khatulistiwa1234 > 2018-10-09 08:21 | Report Abuse

DAMAGED IN PROCESS .

Posted by khatulistiwa1234 > 2018-10-09 08:25 | Report Abuse

GAMUDA TOP GUY know its most dangerous BOMB hinged on is the OLD HORSE CLOCK , old clock but enough to taken its SOUL .

Posted by lizi > 2018-10-09 08:25 | Report Abuse

@stockraider, exactly..but not many be able to sees the changes in business nature or fundamental. I straight away eliminate construction after ge14 as they dont make any investing sense, short term....players need time to adjust...

Posted by CharlieSim > 2018-10-09 08:26 | Report Abuse

Malaysia going down the drain ... starting with Construction companies... prepare for recession... :)))))

Posted by CharlieSim > 2018-10-09 08:27 | Report Abuse

come back GE 15 maybe...???