This article first appeared in The Edge Financial Daily on April 9, 2019 - April 15, 2019

KUALA LUMPUR: With just 13 months left to the mutually-agreed suspension period for the Kuala Lumpur-Singapore high-speed rail project, MyHSR Corp Sdn Bhd is seeking a consultant to help it review the technical aspects of the options it plans to recommend to the government to cut the cost of the project.

MyHSR said it will be carrying out an open tender to appoint this techical advisory consultant (TAC) to move forward with finalising these cost-reduction options.

“The TAC will review and validate the proposed infrastructure assets within Malaysia, such as alignment, stations and HSR maintenance facilities to validate the recommendation. This review is expected to include on-the-ground data collection activities such as topography survey data, soil investigation and ground condition assessments,” MyHSR said in a statement yesterday.

MyHSR chief executive officer Datuk Mohd Nur Ismal Mohamed Kamal said the tender “marks an important step forward before the end of the suspension period in May 2020”.

“We encourage all firms with the relevant experience to participate in this tender as the findings of this review will help us chart the right course for this project,” he added. Information on the tender has been put up on MyHSR’s website since yesterday.

Construction of the 350km HSR project has been jointly suspended until May 31, 2020, following an agreement between the governments of Malaysia and Singapore on Sept 5 last year, with both countries committed to finding the best way forward for the project during this suspension period.

On Malaysia’s side, the government has been reviewing the project with MyHSR Corp to identify cost-reduction options, such as reviewing and optimising the alignment, station locations, as well as business model, to cut the cost of the project from the reported price tag of RM110 billion.

“In line with the government’s objective of managing the country’s debt, the project review effort focuses on prioritising key functional aspects in civil construction, technology, and capacity requirements without compromising on quality and safety in delivering high-value, efficient, and more affordable services that will be economically beneficial to Malaysia and its people,” MyHSR’s statement yesterday also said.

In light of the suspension, MyHSR Corp has pushed back the commencement of the line’s service to Jan 1, 2031, from the initial Dec 31, 2026.

The project is one of a few mega infrastructure projects launched by the previous Barisan Nasional government that has come under review under the new Pakatan Harapan government over inflated costs.