KUALA LUMPUR (May 3): The consortium of Malaysian Resources Corp Bhd (MRCB) and Gamuda Bhd, and YTL High Speed Rail Sdn Bhd (YTL THP JV) — a joint venture (JV) between Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd and TH Properties Sdn Bhd — have accepted a letter of appointment (LoA) from MyHSR Corp Sdn Bhd, appointing the two consortiums as the project delivery partners (PDPs) for the northern and southern sections of the Kuala Lumpur-Singapore High Speed Rail (KL-S’pore HSR) project.

The MRCB Gamuda Sdn Bhd Consortium is the PDP for the northern section from the Bandar Malaysia station to the contract boundary being the first standard viaduct pier on the south side of the Melaka station. The MRCB Gamuda Consortium is a 50:50 JV between MRCB and Gamuda. The YTL THP JV will be the PDP for the southern section.

Under the LoA’s terms, the MRCB Gamuda Consortium said the appointment is conditional upon the submission of commitment bond amounting to RM5 million and corporate guarantees issued by MRCB and Gamuda to MyHSR Corp within 14 days.

In separate filings with Bursa Malaysia yesterday, MRCB and Gamuda said the project will not have any significant effect on their earnings and net assets for their respective current financial years, although they expect it to contribute positively to their future earnings.

Gamuda said it plans to finance its portion of its investment in the PDP company through internal funds and/or borrowings.

On April 5, MyHSR Corp announced that MRCB Gamuda Consortium had been selected for the northern portion of the HSR project alignment, while YTL THP JV for the southern portion.

The PDPs will be responsible for designing and delivering the civil works for the KL-S’pore HSR project at an agreed cost and schedule. They will carry out all necessary activities throughout the planning, construction, testing and commissioning phases, among others. The PDP tender, called on Nov 22, 2017, was conducted via an open tender by MyHSR Corp.

Eight stations are currently planned for the HSR project — Bandar Malaysia, Sepang-Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri in Malaysia and Jurong East in Singapore, with operations of the HSR service targeted for commencement by Dec 31, 2026. It will reduce travel time between Singapore and Kuala Lumpur to 90 minutes, compared with more than four hours by car.

This article first appeared in The Edge Financial Daily, on May 3, 2018.

For more stories, download EdgeProp.my pullout here for free.

SHARE
RELATED POSTS
  1. Govt offers Gamuda’s 60%-owned SRS Consortium works on first segment of Penang LRT
  2. Gamuda 2Q net profit rises 7% as overseas projects continue to drive earnings
  3. Evaluation of KL-Singapore HSR concept proposals to take two months, Parliament told