THE construction of mass rapid transit 2 (MRT2) is 70% completed and expected to start operations in 2023, said Finance Minister Lim Guan Eng.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) today inked a supplemental agreement with contractor MMC-Gamuda KVMRT for the Sg Buloh-Serdang-Putrajaya line.

“Major works are expected to complete in 2022 and MRT2 will become fully operational by 2023,” Lim said while witnessing the signing of the agreement with Transport Minister Anthony Loke.

Phase one of MRT2, connecting Kwasa Damansara and Kg Batu, will begin operations in July 2021.

The MRT 2 project was one the few mega-projects which saw its cost rationalised under the current government.

Its cost was shaved from RM39.35billion to RM30.53billion, resulting in a savings of RM8.82billion.

This translates into a reduction of 22.4% from the original cost negotiated by the government with MMC-Gamuda in October 2018.

The cost for the above-ground portion was brought down to RM22.64 billion from RM17.42billion.

A savings of RM3.6billion was achieved from the underground portion which was reduced from RM16.71billion to RM13.11billion.

The savings follow the conversion of the contract terms to a turnkey from the initial project-delivery-partner (PDP) model.

Additionally, deferment and rationalisation of elevated works and underground structures, for example, the Bandar Malaysia station and reducing architectural finishing also led to savings.

“That one (Bandar Malaysia station), we can factor in later. We also want to see what is the progress,” Lim said.

Bumiputera contractors’ participation remain at 45% even after changes to the project structure. This translated to RM13.7billion. – January 17, 2020.