17 Qualify to bid for RM7 b LRT Contracts

17 qualify to bid for RM7b LRT contracts

Syarikat Prasarana Negara Bhd said 17 applicants have qualified to bid for contracts of about RM7 billion to extend light rail transit (LRT) lines in the Klang Valley.

They include firms like Sunway Construction Sdn Bhd, IJM Construction Sdn Bhd, Muhibbah Engineering Sdn Bhd, Gamuda Bhd, MRCB Engineering Sdn Bhd as well as joint ventures such as WCT-Sinohydro, Ranhill-CCCC, UEM Builders-Intria Bina and Zabima-Leighton.

State-owned public transport operator Prasarana group managing director Datuk Idrose Mohamed said the candidates prequalified as the main contractor for "their technical and financial capacity and capability with the relevant infrastructure works experience".

Another 15 candidates were shortlisted for the subcontracting of fabrication and delivery of segmental box girder works.

Idrose said the main contractor and subcontractor will be notified officially in due course by Prasarana.

Prasarana is raising RM4 billion from bond sales to partfinance the project to extend the Kelana Jaya and Ampang LRT lines.

The extension forms part of the RM10 billion railway scheme to expand Kuala Lumpur's public transport network.

Idrose said the company was awaiting final approval on the railway scheme from the Department of Railways and would begin construction on receiving the green light.

Both extended lines are expected to be ready for use by the end of 2012.

Idrose added that 65 companies had expressed interest to be the main contractor, while another 36 are seeking to be both the main contractor and a subcontractor.

Another 17 applicants indicated their interest to qualify only as a subcontractor.

Prasarana had issued the request for prequalification on November 3 last year and closed acceptance a month later.

Idrose said that 166 applicants purchased the prequalification documents, but only 118 had made their submissions by the closing date on December 16.

AmResearch Sdn Bhd analyst Mak Hoy Ken reckoned that UEM Group, IJM and Gamuda are the leading contenders for the project, while MTD Cap Bhd potentially stands to gain from subcontracting works.

"We do not discount the possibility of local consortiums being formed for other contractors to participate at subcontractor level. This would include WCT and Loh & Loh Corp Bhd," he said in a report yesterday.

Mak said this news would be positive as well for suppliers of building materials such as Ann Joo Resources Bhd and Lion Industries Bhd, with a significant portion of steel required for extension works.

He has an "overweight" rating on the construction sector.

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