“The cost for the project was earlier reported to be between RM36 billion to as high as RM50 billion…..”
NOTE THAT: Out of that RM5o billion, RM20 billion is for land acquisition and compensation for the properties and structures along the route. Thus the allocation for the actual construction of the KVMRT project is RM30 billion only.
“The owners of the Klang Valley Mass Rapid Transit (MRT) will award their first major contract today (5th April 2011) for an independent check engineeer (ICE) chosen by the government and who will be paid two percent (2%) of the undetermined project cost, which is reportedly above market rates”
Table showing the amount of ICE fees for KVMRT project at 2% of the total cost
|Total Project Cost||Rate of ICE fees||Amount|
|RM50 billion||2%||RM1 billion|
|RM40 billion||2%||RM 800 million|
|RM36 billion||2%||RM 720 million|
|RM33 billion||2%||RM 660 million|
|RM30 billion||2%||RM 600 million|
The amounts shown in the table above is far too high compared to my estimate of the plausible cost of RM50 million.
I would be very grateful if someone can dispute my figure for the benefit of all.