By Yow Hong Chieh
The Malaysian Insider
May 19, 2011
KUALA LUMPUR, May 19 — Syarikat Prasarana Negara Bhd appears to have caved in to pressure from Malay rights groups today when it revised pre-qualification criteria for several construction packages for the Klang Valley Mass Rapid Transit (KVMRT).
The project owner said contractors who wish to tender for elevated civil works, stations and depots work construction packages will be allowed to form joint ventures (JV) or consortiums among local companies starting from tomorrow.
“Prasarana has always been sensitive to all constructive views for our projects and the stand is reflected again in this decision, which was made purely based on the need to get more contractors to participate and the need to make the bidding for the KVMRT project more competitive,” the company said in a statement today.
“Although we have revised the pre-qualification criteria, Prasarana will continue to ensure that only genuine, qualified and competent contractors to be selected to bid for the work contract packages. We will review contractors based on their proven past track records and financial capacity.”
The joint venture or consortium, however, should not involve more than three companies and contractors will only be allowed to submit a maximum of two applications to “ensure a quality and efficient partnership”.
The elevated stations and depots work packages include building works, station M&E works, traction and power sub-station building works, park and ride facilities, depot building drainage, depot equipment and landscape works while the elevated civil works package include substructure works, elevated guideway structure and segmental girders.
Prasarana had on March 30 imposed additional criteria on contractors taking part in the project tender which disallowed them from forming joint ventures or consortiums.
Group managing director Shahril Mokhtar said this was to ensure that only “genuine, competent and suitably qualified” contractors who could meet the project deadline were selected.
“The pre-qualification criteria are not overly stringent and enable many experienced contractors to qualify on their own without entering into a joint venture with others,” he had said in a statement.
But Perkasa was quick to accuse Prasarana of blocking Bumiputera contractors from participating by enforcing “strict” guidelines that would only benefited “rich non-Bumis”, saying that MMC-Gamuda was “looting and monopolising” the project.
The Malay Chamber of Commerce Malaysia later asked the government to hand over the whole project to it as Bumiputera contractors were finding it hard to bid for tenders.
The KVMRT is expected to be the largest-ever construction project in Malaysia and had earlier been estimated to cost between RM36 billion and RM53 billion.
Prasarana has said, however, that those estimates are now outdated and new estimates will be made once the alignment is finalised in June.
I suggest that two awards be given for every job. For expediency sake, sake. One to be called the contracting award and the other, the back-up award, obviously. And for this arrangement to work smoothly, the agreement be worded to permit immediate termination in the event of non-performance by the contractor concerned.
///Prasarana has said, however, that those estimates are now outdated and new estimates will be made once the alignment is finalised in June.///
Prasarana is hinting a “cost overrun” even before the project takes off.