Will PAC stop this deal before we are again shortchanged?

ARCHIVES 2010

By admin-s On Jul 12, 2010

The people want to know why, in this direct negotiations, Zhuzhou has offered a very high price, roughly RM48 million for each of the six-carriage EMUs, which would total RM1.8 billion for the 38 units as compared to RM14 million in the earlier KTM offer.

By Dr. Dzul

Former Minister of Transport in response in his blog was amazed by the conspicuous absence of the following key points in the procurement that was not said by me (Kuala Selangor) during my debate in the 10-MP. For the information of all, I will reproduce here what he said was missing in my debate..

a)    The 2008 KTM tender of 8 sets of 3-car EMU trains was cancelled and not awarded, in the light of new demands and needs highlighted by the National Key Result Area (NKRA) for Urban Public Transportation that surpassed those contained in the tender;

b)    The quantity under the procurement is for 38 sets X 6 car, as compared to the original tender for 8 sets X 3 car. Any price comparison must always be based on the technical specifications or we run the risk of comparing apples with oranges;

c)    The direct negotiation for the procurement was not directed and endorsed by the Ministry of Transport, but by the Ministry of Finance..

For his information all 3 points were refuted and in fact in my article written and published by Harakah, I elaborated my case why the Government shouldn’t issue the Letter of Award (LOA) and in fact should blacklist railway manufacturer Zhuzhou Electric Locomotive Co Ltd of China. A thorough perusal of both specifications revealed that the only difference in the specification was of CCTV and slide presentation panel for the new 38 EMU 6-car.

I would like to stress that the people want to know why, in this direct negotiations, Zhuzhou has offered a very high price, roughly RM48 million for each of the six-carriage EMUs, which would total RM1.8 billion for the 38 units as compared to RM14 million in the earlier KTM offer.

More importantly now, I have come to know that the price of the 38 EMU doesn’t include Miantenace, Repair and Overhaul (MRO) package. Government should now negotiate and conclude on price of EMU and MRO simultaneously during such procurement.