Rafizi: RM21b MRT1 cost off the mark, excludes consultancy fees
PKR vice-president Rafizi Ramli insisted today that the RM21 billion figure cited as the total cost of the 51km Mass Rapid Transit (MRT) line from Sungai Buloh to Kajang was off the mark.
At a press conference today, Rafizi said this was because it did not take into account the RM7 billion in consultancy fees MRT Corp paid to KV MRT Sdn Bhd - a joint consortium formed between MMC Corporation Bhd and Gamuda Bhd.
PKR vice-president Rafizi Ramli insisted today that the RM21 billion figure cited as the total cost of the 51km Mass Rapid Transit (MRT) line from Sungai Buloh to Kajang was off the mark.
At a press conference today, Rafizi said this was because it did not take into account the RM7 billion in consultancy fees MRT Corp paid to KV MRT Sdn Bhd - a joint consortium formed between MMC Corporation Bhd and Gamuda Bhd.
"This is why I strongly condemn attempts by Prime Minister Najib Abdul Razak to mislead the people on the total cost of the 150km MRT project.
"Not only (the fact) that the entire project costs would exceed RM100 billion was hidden from the public, his (Najib's) announcement that 'MRT 1 project only costs RM21 billion, with a saving of RM2 billion' is inaccurate as it does not take into account the consultation fees," Rafizi, the Pandan MP, said.
Specifically, Rafizi referred to a July 2014 New Straits Times report quoting former MRT Corp chief executive officer Wira Azhar Abdul Hamid as confirming that the total figure of RM28 billion included consultancy fees paid to KV MRT and other related costs.
"Whoever has been following this project (MRT) from the beginning knows that the controversy is all about management of the consultation contracts," he stressed.
The other related costs, Rafizi said, included for overheads incurred capped at RM2.85 billion and a six per cent contingency cost from the total contract value.
Additionally, he also cited a February 2012 report by business weekly The Malaysian Reserve on the official signing ceremony to formalise the project delivery partner agreement between MRT Corp and KV MRT - under which the latter would receive a six per cent fee from the total contract value.
Finance Minister II Johari Abdul Gani had previously dismissed Rafizi's claims of ballooning costs and insisted that the Pandan MP did not know how to count.
Rafizi had last week claimed that the MRT 1 project and the subsequent MRT 2 and MRT 3 project would cost RM100 billion by adding together the cost of MRT 1 with cost estimates provided by MRT Corp.
It was previously announced that MRT 2 would cost RM32 billion while MRT 3 would cost at least RM50 billion.
Meanwhile, Johari, who is currently overseas, said offhand, he could not comment as he had no figures with him.
No answer would satisfy the Pandan lawmaker, he claimed.
"No matter how we answer, Rafizi will continue to find fault. So, let's go back to basics, MRT (Corp) said the construction cost was priced at RM21 billion," he told Malaysiakini.
"Just based on what was announced by MRT (Corp). If he is not happy, too bad about it. I cannot be arguing with someone who will never believe what MRT said.
“They can argue with me, but not MRT (Corp). When it came out with official announcement, I can't be arguing also," he said, urging the news portal to verify with MRT Corp.
Malaysiakini has attempted to contact MRT Corp for comment on the issue.


Are you sure you want to delete this comment?
This action cannot be undone.