ENSURING STAKEHOLDER COORDINATION

FOR SUCCESSFUL PROJECT EXECUTION

- KLANG VALLEY MRT (KVMRT)

19 March 2013

Dato’ Azhar Abdul Hamid

Chief Executive Officer

MRT CORP.

MASS RAPID TRANSIT CORPORATION SDN BHD (MRT CORP.)

Wholly owned by the Government of Malaysia via Ministry of Finance, Inc.

MRT Corp. is the developer and owner of the Klang Valley MRT Project and assets.

Took over KVMRT Project from Prasarana on 1 October 2011.

THE KVMRT PROJECT

The KVMRT Project was approved by the Government of Malaysia in December 2010. The first MRT line to be implemented is the the 51km Sungai Buloh-Kajang Line (SBK Line).

Construction of the SBK Line was officially launched on 8 July 2011 by the Prime Minister of Malaysia, YAB Dato’ Sri Mohd Najib Bin Tun Abdul Razak.

KLANG VALLEY MRT PROJECT (KVMRT PROJECT)

SBK LINE

DESCRIPTION Total

Final

Length (km) 51.0

(41.5 Elev + 9.5 UG)

Station (nos) 31

(24 Elev+ 7 UG)

Provisional Station (nos) 3 Elev

Park & Ride 16

SUNGAI BULOH

KG BARU

SUNGAI BULOH

KOTA

DAMANSARA

TAMAN

INDUSTRI

SG. BULOH

PJU 5 DATARAN

SUNWAY

THE

CURVE

ONE UTAMA

SEKSYEN 16

PUSAT

BANDAR

DAMANSARA

SEMANTAN

KL SENTRAL MERDEKA

BUKIT BINTANG

CENTRAL

COCHRANE

MALURI

TAMAN BUKIT RIA

TAMAN BUKIT MEWAH

LEISURE MALL

PLAZA PHOENIX

TAMAN SUNTEX

TAMAN CUEPACS

BALAKONG

TAMAN KOPERASI

BANDAR TUN

HUSSEIN ONN

BANDAR

KAJANG

KAJANG

P

P

DBKL

P

P

P

P

MPKj

MPAJ

MPS

MBSA

MBPJ

MPSJ P

P

P P

P

RRI

TEKNOLOGI

TTDI

BUKIT

KIARA

P

Legend

KTM

KJ LRT

AG LRT

MONOREL

ERL

Park n Ride P

P

`

PASAR

SENI PASAR RAKYAT

SAUJANA

IMPIAN P

P

P

P

THE SBK LINE ALIGNMENT

SBK LINE - PHASED OPENING

Phase 1 31/12/16’

Phase 2 31/7/17’

STAKEHOLDERS

MRT CORP.’S STAKEHOLDERS (1/2) STAKEHOLDER ROLE/ RELATIONSHIP

1 Performance Management Delivery Unit (PEMANDU) - unit under the Prime Minister's Department

Oversees implementation and assess progress of the KVMRT project under the Government of Malaysia’s Economic Transformation Programme (ETP).

2 Ministry of Finance, Inc. Shareholder.

3 Suruhanjaya Pengangkutan Awam Darat (SPAD) - Land Public Transport Commission

Regulator.

4 Auditor General Government Auditors.

5 Danainfra Nasional Berhad Raise financing for Government infrastructure projects including the KVMRT Project.

6 Project Delivery Partner (PDP) Delivery of the KVMRT Project within agreed time and target cost.

MRT CORP.’S STAKEHOLDERS (2/2) STAKEHOLDER ROLE/ RELATIONSHIP

7 Independent Consulting Engineers Monitor the progress of the KVMRT Project and its input/verification is required before Work Package Contractors are paid.

8 Ministry of Finance Approval of tenders.

9 DBKL (City Hall) District/ local councils

Approval/ issuance of licenses/ permits.

10 Work Package Contractors (WPCs) Underground works contractors, elevated and depot works contractors, system works contractors.

11 Workers Work force for construction works.

12 Public/ “Rakyat” The ultimate beneficiary of the KVMRT Project.

PROJECT GOVERNANCE

PROJECT GOVERNANCE

Technical Committee

Chair: SPAD

Implementation

Players

EXCO

Chair: Chief Secretary

to Government of Malaysia

Steering Committee

Chair: YAB PM

Overall policies and direction Strategic issues resolution Big decisions Progress reporting Meeting frequency: Quarterly

Complex inter-agency issues resolution Medium-high impact decisions Progress reporting Meeting frequency: Once a month

Progress monitoring and tracking Operational and technical decisions Project issues resolution Meeting frequency: Fortnightly

MRT EXCO

YBhg. Dato’ Sri Dr Ali bin Hamsa, Chief Secretary to the Government of Malaysia is the Chairman of the EXCO.

EXCO is made up of senior representatives from various government agencies which are instrumental and critical to the success of the KVMRT Project.

EXCO meets once a month to coordinate efforts to ensure smooth planning and implementation of the MRT Project.

PROJECT STRUCTURE

PROJECT STRUCTURE

Supervising Agency

InfraCo

(GoM SPV)

o(GoM SPV)

Underground

Works (Design & Build)

Authority over corridors & alignment Study transportation demands Develop integrated master plan Approve railway schemes Interface with working agencies

Project & asset owner Submission of all key project documents

(railway scheme, LA plan, EIA etc.) Appoint PDP Verify target cost, target time &

pain/gain Platform for payment disbursement Appoint RapidKL as operator Undertake property development

potential

Advise, manage and raise funding for infra projects

Elevated/ Depot (Build Only)

System Works (Design & Build)

Independent

Checking Engineer

• Design compliance • Tender vetting • Safety & quality

Joint-management of the procurement process

Quality, performance & supervision of contractors

Local authority approvals

SPAD

(Supervising Agency)

MRT Corp.

(Project Co)

MMCG JV

(PDP)

Danainfra

Independent

Consulting

Engineer

Design

Consultants

(Civil & Systems)

Design Civil Works

Auditor General

DANAINFRA NASIONAL BERHAD

Set up by the Ministry of Finance to arrange funding for Government infrastructure projects.

DanaInfra’s primary role upon its incorporation is to secure and manage the funding for the KVMRT Project (SBK Line).

DanaInfra’s objective is to minimise the impact of funding large infrastructure development on the Government’s overall fiscal position.

In July 2012, issued first series of the commercial papers/ medium-term notes programme for the SBK Line amounting to RM2.4 billion.

In January 2013, issued Malaysia’s first retail sukuk offering amounting to RM300 million.

On MRT Corp.’s instructions, Danainfra pays directly to Work Package Contractors, PDP, ICE etc.

PROJECT DELIVERY PARTNER (PDP) (1/2)

MMC Gamuda KVMRT (PDP) Sdn Bhd or PDP provides single point of accountability to deliver SBK line within the agreed KPI of Target Cost and Set Completion Date.

Appointing a turnkey contractor to build the MRT project might prove costly should there be any variation in plans or cost. PDP model prevents this.

PDP responsible for: • Engineering Design and Technical Specifications that meet the Employer’s

Requirements; • ensure optimum performance of all other Works Package Contractors (WPCs)

in terms of quality, safety and time; and • packaging the works, calling tenders, evaluating bids, selecting works package

contracts and distributing the awards to contractors on MRT Corp’s behalf.

Step-in and self-deliver the performance of works in the event any of the WPCs fail in its performance of such works.

PROJECT DELIVERY PARTNER (PDP) (2/2)

“We Are Partners” – Close and seamless working relationship between MRT Corp. and PDP.

Project Coordination Meetings (PCM) held once a month between MRT Corp., PDP and the Underground Works Contractor (UWC):

• Formulate joint policies and strategies for the KVMRT Project; • Assess, manage and mitigate risks relating to the KVMRT Project; and • “No holds barred” forum to resolve any soft issues between MRT Corp., PDP

and UWC.

“Make It Happen Committee” Meetings (MIHC) held as and when required between MRT Corp., PDP and UWC to address technical issues requiring quick decisions.

INDEPENDENT CONSULTING ENGINEERS (ICE)

HSS Integrated Sdn Bhd and SNC-Lavalin (Malaysia) Sdn Bhd JV. ICE to provide oversight of the KVMRT Project and assist MRT Corp. in ensuring

that PDP delivers a safe and efficient transportation system that meets the requirements of MRT Corp. and the Government.

ICE to monitor the progress of the KVMRT Project and its input/verification is required before WPCs are paid.

WORK PACKAGE CONTRACTORS (WPCs)

Work Package Contractors (WPCs): • Underground works; • Elevated viaducts/ Depots works (8 ‘V’ work Packages/8 WPCs); • Elevated stations works; and • System works.

“No holds barred” Quarterly WPC Review Meetings between senior management of MRT Corp., PDP and all WPCs (8 ‘V’ packages).

Monthly League Table for WPCs’ performance, WPCs assessed on: • Progress – 30% • SHE – 25% • Quality of works – 20% • Project management – 10% • Public engagement – 10% • Submissions – 5%.

WORKERS

At peak of construction, up to 12,000 workers may be required.

MRT Corp. and PDP decided that WPCs should house their workers in Centralised Labor Quarters (CLQs). 4 CLQ locations in Klang Valley.

CLQs provide a good living environment for workers with all necessary amenities provided including sports facilities.

PUBLIC/ RAKYAT MRT Corp. has a mobile information truck and information centres to create

awareness and buy-in in relation to the KVMRT Project.

MRT Corp. has a toll-free hotline to receive and address complaints from the public. Advance notification of any MRT related road closures and diversions.

Co-existence model for land required for tunnel i.e. sign mutual agreements not

requiring land owners to relinquish property above ground. Also leads to savings for the Government.

Special Compensation Committee chaired by Ministry of Finance to look at any

other compensation possible to ease burden of land owners affected by compulsory land acquisition.

MRT Corp and PDP in conjunction with Kementerian Wilayah Persekutuan (Federal Territories Ministry) and DBKL (City Hall) continue to hold engagement sessions with affected residents.

MRT Corp continues to engage with property developers affected by land acquisition i.e. integration agreements to accommodate integration of stations with future developments.

PROCUREMENT STRUCTURE

PROCUREMENT STRUCTURE (1/3)

Supervising Agency

InfraCo (GoM SPV)

Approve award of contracts to WPCs

Chairperson depending on value of tender

Approval of Procurement Strategy

Recommend best evaluated tender to OSPC

Procurement Strategy, Process & Evaluation Criteria

All matters related to Procurement

Evaluation of tenders

Recommendation to OSTC

Clarification to tenderers

OSPC

Chair: YAB PM / MK2 / KSP

OSTC

Chair: CEO, MRT Corp.

Working Committee

Chair: MRT Corp & PDP

Ministry of Finance

MRT Corp.

MRT Corp. & PDP

PROCUREMENT STRUCTURE (2/3)

The WPCs are appointed through a procurement process involving: • Working Committee (WC); • One Stop Technical Committee (OSTC); and • One Stop Procurement Committee (OSPC).

On a recommendation following tender evaluation by the WC, the OSTC will deliberate and make a suitable recommendation to OSPC for OSPC’s scrutiny, deliberation and decision.

OSPC chaired by three different persons depending on the contract value: • < USD 16.7 mil (< RM50 mil) - Finance Ministry Secretary-General; • < USD 100 mil (< RM300 mil) - Second Finance Minister; • > USD 100 mil (> RM300 mil) - Prime Minister.

PROCUREMENT STRUCTURE (3/3)

Work Package Contractors (elevated stations, depot, underground, systems) are prequalified.

Competitive bidding for all work packages i.e. system works, elevated/ depot and

underground works. 2 envelope system applied i.e. commercial proposal will be opened and considered only if bidder has passed the financial and technical evaluation stage.

Entire/ complete tender schedule made available on MRT Corp.’s website: www.mymrt.com.my

Tender awards publicised on website and via press releases. The letter of award to the WPC is issued by the CEO of MRT Corp.

Tripartite contract between MRT Corp, PDP and the WPC.

THANK YOU