Tuesday, April 24, 2012

If you can change the world... or perhaps just one person's thinking..

  1. I am confronted with the possibility of putting myself right in the middle of the crossfire - the MRT project, with a controversial contract owner as a potential employer. As always, I'd need to examine my heart and pray the istikharah - not that I have even attended the interview.
  2. To do this, I need to have a sincere positioning as to this opening. What is my role, and this role must be one that I can live with. Of course, the devil uses all sorts of bogeys to prevent decisiveness and encourage uncertainties - but alhamdulillah Allah has provided aql and also to reach out to Allah for hidayah.
  3. Principles are as below:
    • That I benefit the most people in my position of responsibility
    • That I uphold truth and justice in my dealings. While this means exercising independent thought, this also means being able to discern the different roles of the different stakeholders.
    • That I have the opportunity to do good to my family and to myself.. ie leave a legacy. 
  4.  Now I've got that out of the way, let's examine facts about the MRT.
    • by all accounts, extremely high cost vs all others. I'm not sure if inflationary effects and base raw material effects have been included in the consideration, but surely that is a question to be asked? Are the specifications common or there are additional features in the Malaysian design that seemingly inflated the costs to most worrying levels.
    • That it seems rushed. The alignment has still not been sorted out for the Jalan Sultan, TTDI and perhaps other locations. The overall MRT masterplan is still out there somewhere. Yet this unsolicited MMC-Gamuda bid has been awarded at this inflated cost.
    • Speaking of costs, does the Govt know how to value projects of this size? My prior experience in PBX2 seems to indicate they have no idea and the fact that there is willingness for the public sector to fund private sector profits indicate they are ignorant of a proper funding structure for these PPP/PFI type projects.
    • Auctioneering is necessary otherwise government will always be beholden. Will the private sector refuse generous terms? Are there kickbacks involved? I wouldnt want to know if there are - but these are dangerous times to turn a blind eye and a deaf ear to this types of development. The Arab Spring had "sprung" up in reaction to raging impotence to a sense of injustice. RM36b - RM50b can do that. The question will be what is the funding structure? Refusal to have open tenders, or a token Swiss Challenge, is insufficient.
    • But again, Government is probably a bit smarter in that there is the added layer of building a "world-class private sector objective", although in this case, privatising profits is a strange way of doing it. There should be no additional subsidies / grants to support financing given the ridiculous profit margins for this and to consider the construction as purely a private sector play. Having said that, where is the breakeven for the operators?
    • And here GoM has the trumpcard of a property play for the sites. And so, there is the answer for a rather complex equation. Does this mean the numbers work out? That remains to be seen.
  5. So what would my role be? Primarily to deliver value to the company, increase credibility of the engineering profession, and ensure I turn out fine insyaAllah. May Allah guide me in my affairs.

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