Five in race for MRT job

By Sharen Kaur

sharen@nstp.com.my

Published in NST on November 7 2011

Kuala Lumpur: Two groups comprising local and foreign firms are the favourites to win a contract worth between RM9 billion and RM12 billion for underground tunneling works for the Klang Valley Mass Rapid Transit (KVMRT) Sungai Buloh-Kajang line, industry sources said.

The two are Gamuda Bhd-MMC Corp Bhd and Gadang Holdings Bhd-Hyundai.

Business Times understands that five groups were shortlisted to bid for the contract.

The other contenders for the job are China's Sinohydro Group, China Railway Corp and Japan's Taisei Corp.

A source said competitive pricing could pose a challenge to the parties interested to make a bid. 

"Heavy machinery and equipment, as well as skilled workers, are required for the job as it will involve 9km of underground tunnelling works in the city centre and this will raise their pricing.

"The government may award the contract to either Gamuda-MMC or Gadang-Hyundai as it wants more local involvement in the project. Both groups have the expertise in handling railway matters." 

It is understood that MRT Corp, owner of the multi-billion ringgit railway project, had last week called for a tender for the tunnelling contract. 

Bids were expected to close by the end of January and the contract might be awarded by mid-2012, the source said. 

MRT Corp was formed to take over the MRT project from Syarikat Prasarana Negara Bhd, effective Sept 1.

The MRT project, which is worth RM50 billion, represents one of the economic entry point projects identified for the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the Economic Transformation Programme. Some awards have already materialised for the elevated works.

The government approved the MRT project in December last year and appointed Gamuda-MMC as the project delivery partner (PDP). 

As the PDP, apart from tunnelling works, Gamuda-MMC will not be allowed to bid for the other eight parcels of the project.

There has been speculation that Gamuda-MMC may get the contract due to its role as the PDP.

In a recent news report, MRT Corp chief executive officer Datuk Azhar Abdul Hamid said Gamuda-MMC would have to bid for the tunnelling package via a Swiss Challenge.

The Swiss Challenge form of public procurement is when a public authority receives an unsolicited bid for a public project to be provided to the government and the bid is then published and third parties are invited to match or exceed it.