Tuesday, September 13, 2011

Proposed MRT might be bond-financed, says Gamuda

The proposed MRT system is part of the government’s Greater KL transformation plan
The proposed MRT system is part of the government’s
Greater KL transformation plan.
KUALA LUMPUR, OCT 1 — There is a potential for bonds to be issued to finance the proposed Mass Rapid Transit (MRT) system, said Gamuda Bhd executive director Datuk Ir Paul Ha.
Saying that the Malaysian bond market was reasonably matured, he said Gamuda had proposed to develop a suitable MRT system for the long-term needs of the Klang Valley.

Speaking to reporters after the official opening of the “ABB Forum On Powering The Rails In Malaysia” here today, Ha said funding was a crucial factor in the MRT project.

Earlier, in his presentation, Ha said there were gaps in Malaysia’s rail network in terms of its efficiency and sustainability arrangements.

“In 1995, the Klang Valley railway system was double-tracked and electrified and a mixed fleet of electric trains were purchased from three different sources.

“However, by 2010, the fleet become unusable, having been retired off, because of the difficulty in procuring spare parts.

“The key for successful models, as found in many jurisdictions, are the separation of the asset ownership from the operators to reinforce accountability and establish appropriate arms-length relationships,” he said.

Ha added the capital expenditure burden of the asset should be separated from the operational costs that can be effectively recovered from the users with a view to establishing a business model that was profitable.

“For there to be a genuine private sector interest, it will be necessary to come up with a clear set of pricing, access and regulatory policies as well as a level playing field for all operators,” he said.

Meanwhile, ABB Malaysia Country Manager and Region Manager for South Asia, Sim Boon Kiat said the company aimed to grow its market share in Malaysia’s rail sector.

He added ABB, the leader in power and automation technologies, has assumed a vital role in the power supply of the North-South electrified double-track project, taking the rail sector to the next level of efficiency and reliability. — Bernama

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