Annual Progress Report 2019 TOWARDS BETTER CONNECTIVITY Annual Progress Report 2019 1 /94 Annual Progress Report 2019 TOWARDS BETTER CONNECTIVITY Annual Progress Report 2019 3 /94 Annual Progress Report 2019 CONTENTS Abbreviations 4 MRT Sungai Buloh-Kajang Line CEO’s Report 6 MRT Sungai Buloh-Kajang Line 61 The Year at a Glance 10 Defect Liability Period 64 Mass Rapid Transit Corporation Sdn Bhd Assets and Facilities Management 65 Feeder Bus 66 Vision, Mission and Guiding Principles 18 Communications and Stakeholders Relations 67 Board of Directors 20 Board Committees 24 Commercial Leadership Team 26 Business Development 70 Integrity 28 Advertising 70 Quality and Environment Management System 29 Station Retail and Commercial Asset Leasing 72 Risk Management 30 Commercial Telecommunications 72 Station Naming Rights 72 The Klang Valley MRT Project Events and Activations 72 The Klang Valley Integrated Urban Rail 34 Network Financial Report MRT Sungai Buloh-Serdang-Putrajaya Statement of Financial Position as at 76 Line 31 December 2019 Statement of Profit or Loss and Other 77 MRT Sungai Buloh-Putrajaya-Serdang Line 38 Comprehensive Income for the Year Ended Construction 40 31 December 2019 Feeder Bus 46 Statement of Changes in Equity for the Year 77 Ended 31 December 2019 Procurement 48 Statement of Cash Flows for the Year Ended 31 78 Land 50 December 2019 Industrial Collaboration Programme 51 Bumiputera Participation 52 Awarded Work Packages Centralised Labour Quarters 54 MRT Sungai Buloh-Kajang Line 82 MRT Sungai Buloh-Serdang-Putrajaya Line 88 Safety, Health and Environment 55 Communications and Stakeholder Relations 56 ABBREVIATIONS APAD Land Public Transport Agency KVMRT Klang Valley Mass Rapid Transit MRT Corp Mass Rapid Transit Corporation Sdn Bhd PDP Project Delivery Partner Prasarana Prasarana Malaysia Berhad SBK Line MRT Sungai Buloh-Kajang Line SSP Line MRT Sungai Buloh-Serdang-Putrajaya Line 05 /94 Annual Progress Report 2019 Chief Executive Officer’s Report Welcome to the 2019 edition of MRT Corp’s Annual Progress Report. It gives me great pleasure to present a report on the progress and achievements of the KVMRT Project and MRT Corp as an organisation for the financial year 2019. The year has been an important one for the project with two For tunnel construction under our Underground Works Package, six significant items keeping the team in MRT Corp and our partners out of a total of 16 tunnel boring machine (TBM) drives have been involved in the KVMRT Project very busy. The first of course is completed while another nine were in progress. Work for the last the continued construction of the SSP Line where progress went TBM drive is expected to begin in January 2020. As at 31 December past the two-thirds completion mark as 2019 drew to a close. The 2019, our TBMs have driven 16,855m out of a total excavation length second item was the tedious task of finalising the details of the of 23,616m with tunnel sections complete from Sentul Barat Station cost rationalisation exercise for SSP Line. to Ampang Park Station and Bandar Malaysia Selatan to Chan Sow Lin Station. This is very good progress for what is seen as the most Pushing ahead with the MRT SSP Line complicated and difficult portion of the SSP Line’s construction. For the construction of underground stations which is the other Firstly, let me touch on a few significant milestones that were component of the Underground Works Package, the retaining walls achieved for the SSP Line which enabled us to achieve 67.4% for nine underground stations have been completed except for the completion, which put the project ahead of schedule at the end Kampung Baru North Station which is expected to be completed of the financial year. within the first quarter of 2020. Excavation works have been completed for seven stations with the remaining stations expected One of the most significant achievements was the completion to be completed by the first half of 2020. of all viaducts for the Phase One operations section between Sungai Buloh and Kampung Batu. The last segmented box girder The year under review was especially exciting for our Electrical and (SBG) for this section was launched on the night of 27 August Mechanical System Works as we began taking delivery of our fully- 2019 near Kepong Sentral and was celebrated by the workers at assembled electric trains. By the end of the year, two train sets which the site. Once stressing and other activities were completed, the were fully assembled in Changwon, South Korea, and another nine entire 12.6km of viaduct was handed over fully to the Trackwork train sets which were assembled in Malaysia’s first train assembly Work Package Contractor for it to complete track laying and other plant in Rasa, Hulu Selangor, have been delivered to our Sungai associated work. Buloh Depot. It was certainly a proud moment for all of us each time the four cars of a train were unloaded and coupled together to form For this section of the alignment, civil works will now focus on the complete train set at the depot! In the meantime, work at both completing the elevated stations which involve structural and Rasa and various locations in South Korea are moving at full swing in architectural works, while building services works will also move order for the other trains to be delivered on time. into full swing mode. The Track Works Package also managed very good progress with For the rest of the elevated alignment which will be opened under track laying works at 75% completion for the Phase One section and Phase Two operationalisation, the excavated tunnel under Work targeted for completion by April 2020. Track laying work within the Package V207 and micro tunnelling works for the V204 underpass SSP Line Sungai Buloh Depot has been completed while that for the which will go beneath the Kuala Lumpur-Seremban Expressway Serdang Depot was at 78% completion. has been completed. These are two pairs of tunnels which are being built under the elevated work packages. Meanwhile, all Meanwhile, under the Power Supply and Distribution Work Package, viaducts have also been fully constructed for Work Package V204 seven power supply substations comprising one bulk supply and in progress for the other work packages. substation, three traction power supply substation and three utility buildings were energised during the financial year. 07 /94 Annual Progress Report 2019 The other four System Work Packages were at various stages of 31 October 2019. MRT Corp had earlier been officially named as the progress. developer of this prestigious project, which was a recognition of the MRT Corp’s capabilities, skill and experience. As we come closer to the opening of Phase One of the SSP Line, MRT Corp has set up a structure to ensure operations readiness The RTS Link Project, which involves the construction of a railway of the line during the financial year. The structure comprises three link from Bukit Chagar in Johor Bahru across the Johor Straits to tiers of committees, namely the Operations Readiness Steering Woodlands in Singapore, was put on hold by the Government in Committee, Operations Readiness Working Committee and the 2018 as part of its cost rationalisation exercise for mega projects. Operations Readiness Task Forces covering various disciplines. The Government then decided to proceed with the project after a Each of these committees comprise representatives from MRT Corp, review of its costs and also because of the need to alleviate traffic MMC-Gamuda as the turnkey contractor and Rapid Rail Sdn Bhd as congestion on the Causeway. the future operator of the line. During the year under review, the Ministry of Finance approved the With this structure in place, we will be able to ensure that the road establishment of a subsidiary of MRT Corp to undertake the project. towards the launch of the SSP Line and beyond will be smooth with As a result, Malaysia Rapid Transit System Sdn Bhd was incorporated minimal issues. in December 2019. As we end the financial year, personnel were being identified for positions based on the work programme requirement. Saving The Rakyat’s Money Various meetings have also been held with the parties involved in In the second half of 2018, the Government announced that it the project, including the Ministry of Transport Malaysia and its was embarking on a cost rationalisation exercise for all major counterpart in Singapore as well as the Johor state government and infrastructure projects in the country, including the SSP Line. its agencies. In October the same year, the Government announced that an This project will serve as a good transition for MRT Corp as the SSP agreement had been reached on a reduction of the construction cost Line will be completing soon and we look forward to opportunities of the SSP Line to be reduced by RM8.82 billion to RM30.53 billion. for the skills and expertise of the team to be fully utilised and tested It was also agreed that the project structure was to be changed from again in another Government mega project. the PDP structure to that of a turnkey contract, with the PDP taking on the role of turnkey contractor. As the construction of the SSP Line approaches the final lap and the RTS Link Project expected to kick off, we in MRT Corp expect to Following that announcement, negotiation on the detailed scope have our hands full next year. We believe we are well-positioned and of work as a result of the reduction in cost and change in project equipped to face and overcome the challenges that lie ahead. structure was carried out between MRT Corp and MMC-Gamuda which took up most of the end of the financial year.