Project delivery partner for Line 2 and 3?

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on August 24, 2013
INCREASED EFFICIENCY: MRT Corp hoping to secure govt decision by year-end

The government may appoint a project delivery partner (PDP) for Line 2 and Line 3 of the Klang Valley Mass Rapid Transit (MRT) project.


Mass Rapid Transit Corp Sdn Bhd (MRT Corp) chief executive officer Datuk Azhar Abdul Hamid said the government is mulling over whether to retain the PDP concept or scrap it altogether to save on cost.

Founded in September 2011, MRT Corp is the implementation agency and asset owner of the MRT project.

“We are hoping that a decision on Line 2 and 3 will be made by year-end,” Azhar told Business Times during the company’s Hari Raya open house, here, on Thursday.

The PDP concept is designed to enable the MRT project’s efficient rollout in phases, as opposed to the appointment of a turnkey contractor under the design and build model.

The PDP’s top priority is to ensure the successful completion of the MRT lines within the pre-determined target cost and date.

In the event a contractor or sub-contractor does not meet the pre-determined work package requirements, the PDP will step in at no risk to project delivery cost and time.

MMC-Gamuda JV — a 50:50 joint venture company between Gamuda Bhd and MMC Corp Bhd — was appointed as the PDP for Line 1’s ongoing construction in January 2011.

As a PDP, MMC-Gamuda JV will receive a six proper cent fee of the total contract value.

Should the total cost of the project be less than or equal to the targeted cost, the PDP shall be entitled to the full fees. 

But if the project cost is more than the targeted cost, the PDP fees shall be cut in accordance with the agreed formula.

Line 2 and Line 3 comprise the Circle Line looping around the Kuala Lumpur city centre and the north-south line from Selayang to Putrajaya.

Line 1 is from Sungai Buloh to Kajang.

Mudajaya tipped to win RM300m job

By Sharen Kaur
Published in NST on August 5, 2013

RAIL LINK PROJECT: Company will build an elevated alignment and a station at Subang Skypark, say sources

 
Mudajaya Group Bhd is tipped to win a RM300 million civil contract to help build a railway link in Subang, Selangor, said people with first-hand knowledge on the matter.

The contract will be awarded by the Skypark Link-Lion Pacific (Slip) venture.

In April, Business Times reported that Slip won a RM500 million rail job from the Transport Ministry to build the Subang Jaya-Sri Subang-Subang Skypark Rail Link.

The project alignment is to lay a 4km doubletracking railway line on the existing Keretapi Tanah Melayu alignment from the Subang Jaya station to Sri Subang and to construct a 4.5km elevated alignment near the roundabout, leading to the car park area opposite the Subang Skypark Airport Terminal.

The rail link, which is slated for completion by end-2015, is the first of a three-phase contract.

“Slip had a meeting last week and the management awarded the civil job to Mudajaya.

Mudajaya will construct the elevated alignment and build a station at Subang Skypark,” sources said.

Meanwhile, KL Consult Associates Sdn Bhd, the design consultant for the project, had requested all bidders for the electromechanical portion of the contract to resubmit their bids, a source said.

The contract, which is worth RM60 million to RM65 million, involves signalling, electrification and communication works, as well as installing a ticketing system and closed-circuit
television cameras.

A tender for the contract was called by KL Consult early this year and six groups had submitted bids.

They are Intelligent Essence Sdn Bhd-Siemens Malaysia-Balfour Beatty Rail Sdn Bhd, Artic Rail Sdn Bhd-India’s E to E Engineering, Global Rail Sdn Bhd-Thales-Siemens Malaysia-Bombardier, Pestech Sdn Bhd-ABB Malaysia, CMC Engineering with a Chinese firm and Nakoda with a European party.

A source said only three groups, led by Artic Rail, Global Rail and Intelligent Essence, were qualified for the initial round of tender evaluation.

“Although the other three groups were not qualified, KL Consult had called for all of them to resubmit their revised technical and commercial offers by/before noon on August 1,” the source said.

It is understood that only two groups submitted their revised technical and commercial offers before noon. The rest came in later.

According to a source from the Transport Ministry, Slip is expected to award the contract next month as the project has been delayed without site progress since the joint-venture company won the project.

Ranhill still planning listing

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on August 7, 2013

IPO COMEBACK: Key shareholder may now try to raise money in Singapore, Dubai or Hong Kong
 
RANHILL Energy and Resources Bhd still wants to make a comeback on the stock exchange but this time, it may sell its shares overseas after a disappointing turn of event, here, recently.

According to a source, Ranhill Energy's substantial shareholder Tan Sri Hamdan Mohamad is looking at selling the company's shares in Singapore, Dubai or Hong Kong in the next one or two years.

"Hamdan is very disappointed that Ranhill Energy could not list on Bursa Malaysia. He is eyeing several options overseas to raise money for the company," the source told Business Times.

Ranhill Energy was supposed to have made its debut on Bursa Malaysia on July 31, raising RM753 million.

But the Securities Commission (SC) put a brake on the listing and instructed Ranhill Energy to defer its initial public offering (IPO) indefinitely in view of a possible non-disclosure issue.

Ranhill Energy's trouble began after Petroliam Nasional Bhd (Petronas) on July 17 suspended the licences of its affiliate company, Perunding Ranhill Worley Sdn Bhd (PRW), for an indefinite period.

Petronas suspended the licences for PRW's downstream and upstream activities due to factors concerning a project in Malacca. It has since reinstated the upstream licence but the downstream licence remains suspended.

Ranhill Energy depends on Petronas for oil and gas (O&G) support services contracts. Last year, Petronas accounted for 43.4 per cent of its O&G business. Much of the company's exposure to O&G is from the downstream sector.

Although the suspension was lifted before the listing date, Ranhill Energy announced on July 26 that it was terminating its IPO.

"Hamdan was advised to terminate the IPO because of the reports on the suspension and the SC's request to defer the listing, which would have impacted the share price negatively.

"Hamdan is very upset as he has been planning the IPO for more than a year. He has requested his people to study alternative platforms to raise funds," the source said.

Hamdan is a well-known corporate figure. He had listed a few companies on Bursa Malaysia for several years, including Ranhill Utilities Bhd and Ranhill Bhd. Both companies were later taken private in 2008 and 2011, respectively.