GAMUDA Bhd shares opened at RM2.38 today, falling 25.86% following Putrajaya’s announcement yesterday that it had terminated the company’s contract to build the underground portion of MRT Line 2 (MRT2).

The share price was RM2.57 at 10am.

The MMC-Gamuda contract was scrapped after they failed to renegotiate cost reductions with Putrajaya.

Putrajaya is to call for an international open tender to complete all unfinished underground work after considering “additional savings” for the government.

Additionally, a lower price would ensure cheaper fares for passengers and boost public transport use in the Klang Valley, Finance Minister Lim Guan Eng had said.

MMC-Gamuda will continue works on the above-ground portion of the MRT2 at a reduced price of RM17.42 billion, instead of the original RM22.64 billion.

Lim said this 23% cost reduction would not see any above-ground stations affected.

MRT2 is to run from Sungai Buloh to Serdang and Putrajaya and is expected to cater to two million commuters when it becomes operational by July 2022. – October 8, 2018.