While some construction works have already started in the Klang Valley Mass Rapid Transit (KVMRT) project, the six main contractors for its first line have not actually signed the offset agreement.
The six companies involved include Siemens- SMHRail consortium, MMCGamuda joint venture (JV), Bombardier JV, Siemens-Hisniaga consortium, Meidensha Corp and Mitsubishi Heavy Industries Ltd (MHI).
This delay could result to local companies missing out on the action as main contractors could “later bulldoze their way when awarding the contracts, all in the name of keeping to their timeline,” noted a company official interested in clinching one of the smaller work packages.
Known as the economic compensation package, the offset programme is a unique endeavour aimed at boosting local industrial and technological development as well as provide jobs to local companies with the appropriate expertise and skills.
Officials from the Malaysian Industry-Government Group for High Technology’s (MIGHT), a think-tank agency under the Prime Minister’s Office entrusted to oversee the offset programmes, confirmed that the offset agreements for the mega project have yet to be signed and that it is already delayed.
In fact, MIGHT offset management services VP Major Zailani Safari revealed that the agency is still negotiating with the main contractors.
On the contrary, Mass Rapid Transit Corp Sdn Bhd (MRT Corp), which is tasked with overseeing the KVMRT project, commented that the offset programme is “going well” and is presently “finalising its negotiations with the various contractors for their respective programmes,” reported The Malaysian Reserve.
This comment left some construction and services related companies waiting to secure subcontract jobs skeptical, claiming that things are not really moving as smoothly as described by MRT Corp.
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