Guan Eng: Cabinet to decide on changes to MMC-Gamuda’s MRT2 contract

Mohamad Sabu and Lim Guan Eng attend Parliament in Kuala Lumpur October 15, 2018. — Picture by Azneal Ishak
Mohamad Sabu and Lim Guan Eng attend Parliament in Kuala Lumpur October 15, 2018. — Picture by Azneal Ishak

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KUALA LUMPUR, Oct 17 — If there are any changes to the termination of the MMC-Gamuda’s contract to build the underground portion of the MRT Line 2 (MRT2) Rapid Transit 2, it will be decided by the Cabinet, said Finance Minister Lim Guan Eng.

He said since the termination of the contract was a Cabinet decision, if there were any changes to be made they would have to go through the Cabinet meeting.

Speaking to reporters at Parliament lobby here today, Lim said he was not present in the last Cabinet meeting as he was on a working visit in Bali, Indonesia and was therefore unable to comment on the matter.

On Oct 7, Lim said the Cabinet had decided to terminate the MMC-Gamuda contract to build the underground portion of the MRT2 project, adding that all unfinished underground works would re-tendered via an open tender.

He said the MRT2 project was expected to save RM5.22 billion or 23 per cent of the original cost for the above ground portion of the project, following the open tender exercise.

However, MMC-Gamuda said almost 20,000 employees from a supply chain of more than 600 Malaysian companies would lose their jobs following the termination of the contract.

In his response, Lim said a majority of those affected by the contract termination could be re-hired by the new contractor. — Bernama

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