X’mas comes early for Gamuda-MMC

Gamuda-MMC has received an early ‘durian runtuh’ with the government reportedly granting preliminary approval for the consortium to manage a RM36 billion mass rapid transit (MRT) project for the Klang Valley.

See a report by Reuters here.

Because of the large amount of public money at stake, the government must tell us exactly how the tender process for the consortium’s reportedly ‘unsolicited proposal’ was carried out. Is it true that there was only one  contractor with whom the government negotiated? That in itself is disturbing.

The actual project is expected to cost RM36 billion. Add land acquisition and rolling stock cost and the tab reportedly could come up to a jaw-dropping RM43 billion. (What about possible cost overruns?) That makes it the largest construction job under the Tenth Malaysia Plan.

Examine carefully the major shareholders of Gamuda Bhd as at 15 October 2009: