Double-tracking rail project cost escalates

The cost of building the multi-billion Ipoh-Padang Besar double-tracking railway project has escalated to RM12.5 billion from RM8 billion due to the rise in oil prices and building materials, according to Gamuda Bhd.The government in June this year accepted the proposal from Gamuda and its joint venture partner MMC Corp Bhd to build the 330-kilometre railway track.Gamuda’s group managing director Datuk Lin Yun Ling said the prices of oil and building materials such as cement had increased significantly compared to four years ago.Gamuda-MMC was awarded a similar project four years ago before it was shelved. The government decided to revive the project earlier this year.Speaking to reporters after Gamuda’s annual general meeting in Shah Alam today, Lin said the Gamuda-MMC joint venture would undertake only 20 per cent of the project work while the balance would be outsourced.He said all the outsourced jobs would be given to local contractors, especially capable Bumiputera contractors in Perak, Penang, Kedah and Perlis.Over the next six months, the first wave of outsourced contracts worth RM3.8 billion would be awarded for the construction of 100 bridges, 30 station buildings, 180 kilometres of culverts and drainage works, 300 kilometres of track works and utilities, he added.Lin said the Gamuda-MMC joint venture had appointed a consultant for design and supervision, 32 civil engineering consultant firms, and 16 firms for survey and soil investigation for the project involving a cost of about RM400 million.According to him, the railway project will also benefit local companies involved in providing heavy machinery and equipment, motor vehicles and building materials as well as quarry operators. — Bernama