Nurul tells PM: Don't rush into MRT, don't foist on the young "uncharted" debt

Parti Keadilan Rakyat is concerned at the manner that the recently announced MRT project is being rushed for implementation. The project is estimated to cost in between RM36 billion to RM50 billion, making it the single largest public project in the history of the country.

The Prime Minister should be forthcoming in providing the full and total cost of the MRT project. The price tag of RM36 billion to RM50 billion, initially slated to be funded by the private sector, will now be funded by taxpayers’ money. This will easily push the debt to GDP ratio of Malaysia to exceed the 60% mark by the time the project is completed. Such a huge future debt undertaking requires intense scrutiny to do justice for the future generation, so that they do not end up paying for our mistakes today.

The BN government is bound to repeat the mistakes of LRT implementation if it continues to ignore the clamour for transparency and accountability in the implementation of MRT. The public is still paying for the estimated RM8 billion bail outs of the LRT system, yet we are now going into another uncharted territory with a RM50 billion debt commitment for the MRT.

Parti Keadilan Rakyat acknowledges the need for a comprehensive urban transport system in the Klang Valley. In fact, this should have been done a lot sooner when the cost was cheaper.

However, its implementation cannot be rushed at the expense of all proper checks and balance to ensure the nation gets the best value for its money.

The MRT project was beset with flaws from the beginning. The fact that the engineering design was prepared by MMC-Gamuda and accepted in entirety by the government, begs the question as to whether a proper scrutiny of the design has been made to minimise cost. Ideally, the design should have been studied and prepared by a government authority as the owner of the MRT system.

Instead, the government adopts the design prepared by MMC-Gamuda in entirety and went on to appoint MMC-Gamuda as a project delivery partner, effectively abdicating its supervisory roles in delivering the project to an interested party. As a project delivery partner, MMC-Gamuda will have a significant influence on the tendering process and the choice of contractors. It also presents a great conflict of interest, as MMC-Gamuda is also expected to bid for several underground packages.

The situation is akin to a house owner who gives a blank cheque to his appointed contractor to decide on the size, design and sub-contractors of his house. In the end, the house owner may end up with an overblown mansion that he neither needs nor can afford.

Therefore, there is an urgent need for the government to demonstrate its commitment to safeguarding the taxpayers’ interest. There are a few immediate steps that should be looked into, as follows:

1. Appoint an all party Parliamentary Select Committee to supervise the project, bringing together parliamentarians, experts and transport activists to function as a check and balance mechanism

2. Review the manpower of SPAD to ensure it has enough expertise to check the design and costing of the MRT system

3. Review the Project Delivery Partner (PDP) arrangement with MMC-Gamuda to avoid a conflict of interest in the implementation

4. Consider an appointment of value engineering experts and qualified quantity surveyors to double check on the costing made by MMC-Gamuda

5. Benchmark the cost per km and cost per passenger with other MRT projects in the region including Singapore and Hong Kong

Parti Keadilan Rakyat calls for Malaysians to question and scrutinise the figures and plans for implementation of the MRT project. We are about to make the biggest financial commitment in our history, therefore it is only proper that we ensure the project is financially viable and implemented at the best value for the country.

- Nurul Izzah is the MP for Lembah Pantai and a vice-president of PKR