MRT Corp awards work packages to TRC, Sunway units

PETALING JAYA (May 10): MRT Corp, the owner of the Klang Valley My Rapid Transit (KVMRT) project, has awarded another four work packages worth RM3.2 billion, bringing the total contract sum awarded to date to more than RM13 billion.

MRT Corp issued a statement on Wednesday announcing the winner of three viaduct packages and one depot package. The work packages were announced after the conclusion of the One Stop Procurement Committee (OSPC) meeting, which was chaired by Prime Minister Datuk Seri Najib Razak in Putrajaya.

"The packages are for Viaduct 1, Viaduct 4, Viaduct 7 and Depot 1, and are worth RM3.22 billion. The viaduct packages include construction and completion of viaduct guideways and related works, while the depot package is for the construction of the Sungai Buloh depot and related buildings," the company said.

Package V1 covers the construction of viaducts between the Sungai Buloh and Kota Damansara stations; V4 the Section 17 station to Semantan portal; and V7 from Bandar Tun Hussein Onn to Taman Mesra station.

The V1 package, worth RM1.09 billion, was awarded to a privately held company named Syarikat Muhibah Perniagaan dan Pembinaan Sdn Bhd. Package V4, valued at RM1.17 billion was awarded to Sunway Construction Sdn Bhd, a unit of Sunway Bhd, while V7, worth RM499.98 million was awarded to MTD Construction Sdn Bhd, a unit of MTD Capital Bhd.

The Sungai Buloh depot work package, worth RM458.98 million, was awarded to Trans Resources Corp Sdn Bhd, a unit of TRC Synergy Bhd.

Concurrent with the announcement of the tender awards, TRC's share price shot up by 1.38% to end the day higher at 73.5 sen and Sunway's by 3.04% to RM2.37. On a YTD basis, TRC's share price increased by 13.08% while Sunway's share price dropped by 6.7%.

According to MRT Corp chief executive Datuk Azhar Abdul Hamid, the award of the tenders, the third by the OSPC, shows that the KVMRT project is progressing on track. Prior to this, two viaduct packages; V5 and V6, which cover the Maluri portal to Plaza Phoenix station, and from Plaza Phoenix to the Bandar Tun Hussein Onn station, were awarded to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd respectively.

In addition, MRT Corp has awarded the underground section package, worth RM8.2 billion, to a joint venture between MMC Corp Bhd and Gamuda Bhd. The company, MMC Gamuda MRT PDP Sdn Bhd, is also the project delivery partner (PDP) of the entire KVMRT project. As a PDP, the MMC-Gamuda JV is entitled to 6% of the entire cost of the KVMRT project as its fee.

Based on the value of the tenders that have been awarded so far, excluding the RM8.2 billion underground portion, MMC-Gamuda JV will be paid at least RM300 million, according to back of the envelope calculations by The Edge Financial Daily. However, it is believed that these payments will be disbursed to MMC-Gamuda JV according to the completion rate of the work packages.

According to MRT Corp, more tenders will be awarded in the months ahead. Since March, the company has called for tenders for several work packages such as 10 packages of the advance works utilities relocation, the supply and delivery of segmental box girders for the northbound and southbound lines, and the construction of multi-storey car park buildings.

MRT Corp has shortlisted foreign companies as well as local consortia which are bidding for the system work packages. Among the foreign heavyweights are Kawasaki Heavy Industries Ltd, Mitsubishi Heavy Industries Ltd, CMC-Thales Consortium, and Balfour Beatty Group Ltd. Local companies such as Scomi Rail Bhd and the Kencana group have also formed consortia with foreign partners to increase their chances of securing the jobs.