| Philosophy Politics Economics Posted: 07 Mar 2011 09:04 AM PST
| MRT: Build At Whatever Cost? Posted: 06 Mar 2011 04:59 PM PST Based on a report in the Star yesterday, the "MRT project cost [is] now estimated to reach RM50 billion".
Land Public Transport Commission (SPAD) chief executive officer Mohd Nur Ismal Kamal said that "the Government was doing all it could to drive down the cost… With land acquisition and rolling stock, it could come up to RM50bil, but it is too early to say… We will know the full picture later…"
In addition, a CIMB Research report highlighted that "based on the average RM353m/km for the line, the entire MRT project (150km) could be worth RM53bil compared with the current estimate of RM36bil," after the outcome of Syarikat Prasarana Negara Bhd's contractors' briefing last week.
The dramatic escalation of cost estimates for the Klang Valley MRT project before even the expected commencement of works in July this year is both shocking and scary, and it raises big question marks as to whether the project can ever be completed on time, and within budget.
I have issued a statement earlier this week citing a study on major infrastructure projects around the world by Bent Flyvbjerg at Oxford University which found that rail projects not only suffered from an average of 44.3% cost overrun, actual passenger traffic is 51.4 per cent lower than forecast traffic on average. What's more, 9 out of 10 of suffered from cost overruns; 84 per cent of rail passenger forecasts are wrong by more than ±20 per cent; nine out of 10 rail projects have overestimated traffic.
Flyvbjerg had warned that the main reason for the ugly set of statistics is that "planners and promoters purposely spin scenarios of success and gloss over the potential for failure."
Flyvbjerg argued that "competition between projects and authorities creates political and organizational pressures that in turn create an incentive structure that makes it rational for project promoters to emphasize benefits and de-emphasize costs and risks. A project that looks highly beneficial on paper is more likely to get funded than one that does not."
Now that the project has received the "go-ahead", and the main "project delivery partner" (PDP) contract has been awarded despite the on-going public "feedback" process, it appears that the "cost" of the project are already beginning to see a significant increase.
It is also clear from SPAD CEO's statement that there is no fixed budget for the project and the Government is adamant on proceeding with the project regardless of what the final bill will be. For example, will the Government continue with the project even if the cost were to escalate to RM60 or RM70 billion? This raises the major concern that the Government has not conducted a thorough cost-benefit analysis to determine the point where the direct and indirect costs may outweigh the direct and indirect benefits of the immediate implementation of the MRT project.
It also makes a mockery of SPAD's earlier claim that the PDP, Gamuda-MMC joint venture will bear all increases in costs. If the PDP has been awarded the contract based on their own estimates that the cost will be RM36.6 billion, then surely they must be bound by their estimates, and any increases must be borne by them and not by the Government. In fact, if the increase proves to be significant, as highlighted in both the Star and CIMB reports, then surely there needs to be a revaluation of the project on its continued viability and the risks involved.
We once again call upon SPAD to disclose the terms and conditions of the PDP contract with Gamuda-MMC, which it claims to "guarantee" against cost overruns. This is especially since Gamuda-MMC is essentially acting like the main contractor to the MRT project. SPAD must also disclose its detailed cost-benefits analysis of the MRT project for public scrutiny, checks and balances. Given the size of and the high risks involved with the project, "disasters" as described in the Flyvbjerg's study can only be prevented with greater transparency and public accountability, particularly to prevent vested interest parties like the main contractors from taking both the Government and the public for a ride. | |
| Lim Lip Eng Posted: 07 Mar 2011 07:21 AM PST
| Uneasy about barbed wires Posted: 06 Mar 2011 10:01 PM PST  Danger lurks (Photo by M. RAJAN of http://thestar.com.my): The overgrowth covers the barbed fence used to deter outsiders from wandering into the PKNS flats. Source: http://www.nst.com.my/nst/articles/5bard/Article (By Dawn Chan, 6/3/2011)
Families living at the Selangor State Development Corporation flats in Jalan Kuching are wary of going for a stroll or letting their children run freely around their neighbourhood. For about two months now, the presence of barbed wires placed at areas surrounding 10 blocks of abandoned flats owned by the Defence Ministry purportedly to prevent public access, has the residents living at the 40-year-old housing area worried.
Segambut MP Lim Lip Eng, who highlighted the issue on Friday, said rolls of barbed wires, measuring approximately 0.6m high, surrounds the derelict three-storey walkup flats. The ministry owns 380 flat units. It used to house army personnel before they moved out in 2009. Since then, its been abandoned and in a state of neglect with overgrown lallang and broken windows. The manhole covers and other metal fixtures have been stripped off its structures.
Lim, who visited the area, said, in 2009, he wrote to PKNS about the flats and was told that the Block A, B, C, D, K, L, M, N, P and Q had been sold off to the ministry in 1975. Five more blocks consisting 216 units were sold to the public, two more were rented out and converted into PKNS's office. Therefore, the ministry is responsible for the upkeep the 10 blocks owned by the ministry while the remaining blocks are maintained by PKNS. Two years ago, Lim said, he wrote to Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi asking if there were proposals to do something about the abandoned flats but it went unanswered.
"I hope the ministry will take away these barbed wires, as it is endangering the residents and the public. The street lamps are not lit at night at these unoccupied blocks." He said the ministry should put up barricades which are not dangerous to the public before any untoward incident happens. He added that he received a complaint from a couple whose child was injured after tripping over the barbed wires at night.
Lim said City Hall, under its Street, Drainage and Building Act 1974, is empowered to get the Defence Ministry to do something about the situation. Under Section 85(1)(b), Lim said City Hall has the right to get the ministry to remove the barbed wires to keep the area free from threats that endanger public safety. "If the ministry does not comply, it faces a fine of not more than RM2,000 and further fine of not more than RM200 for each day the barbed wires are not removed. "City Hall can also step in to remove the barbed wires and bill the ministry for the removal work," he said, adding the billing is not subjected to any appeal or review in court. Related news: Child trips over barbed wire fencing at abandoned flats http://thestar.com.my/metro | |
| 魏宗贤文打烟之声 Gwee Tong Hiang for Bentayan Posted: 07 Mar 2011 03:32 AM PST |
| Lim Kit Siang Posted: 06 Mar 2011 11:23 PM PST |
| View issues with Tan Seng Giaw Posted: 06 Mar 2011 03:20 PM PST
| Kepong Garden residents with only photostat copies of land titles must take action. Posted: 06 Mar 2011 01:19 AM PST Deputy National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw calls on the residents of Kepong Garden to check whether their land title certificates are photostat copies. If so, please show them to the Ad Hoc Land Title Action Committee on 13.3.2011 at 3 pm at the Pemadam Hall, Kepong Garden. There must be follow-up action.
On 6.3.2011, Dr Tan told the media conference at the Pemadam Hall, Kepong Garden.
Some houses in Malaysia such as those in Kepong Garden are on freehold land. Because of various factors like no detailed survey of the lots, they only have temporary land title certificates.
Over 1,000 houses in Kepng Garden were built more than 40 years ago. As residents only have temporary titles, an Adhoc Land Title Action Committee has been set up. The Survey and Mapping Department must complete the survey of all lots and the Land Office prepare the permanent titles.
Last week, a resdient has visited the Land Office for the completed land title. She has found out that her temporary Land Title Certificate is a photostat copy that has been kept in her safe deposit for years. Where is the original?
Those with only photostat copies of their land titles must make a police report. After getting a Declaration, they must obtain a caveat at the land office, so that nobody can take out the original title.
Dr Tan Seng Giaw | |
| SUARA PERAK Posted: 06 Mar 2011 11:43 AM PST |
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