KINIGUIDE | The Finance Ministry's recent attempt to pare down the cost of the MRT2 project has raised questions as to how the initial price tag for the projects was decided.
The ministry also appears to be transitioning from the project delivery partner (PDP) model for the above-ground portion of the MRT2 project to the traditional turnkey model.
This instalment of KiniGuide attempts to deconstruct the original MRT2 deal to understand the genesis of the PDP model in Malaysia, the PDP's role and the original cost of the projects.
What are the MRT projects?
Three MRT projects were initiated during the administration of former premier Najib Abdul Razak.
The first is the Sungai Buloh-Kajang line (SBK, commonly known as MRT1) which was completed in July 2017.
In 2014, Putrajaya initiated the Sungai Buloh-Serdang-Putrajaya line (SSP, commonly known as MRT2). As of July this year, the project is 30 percent complete.
Putrajaya had also planned a third MRT project known as the Circle Line, but the present administration shelved this...