By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on November 4, 2015
PUTRAJAYA: A consortium of Chinese companies has been awarded a letter of intent (LoI) for the Gemas-Johor Baru electrified double-tracking project (EDTP) estimated to cost RM9.3 billion.
Business Times understands that state-owned companies China Railway Engineering Co, China Railway Construction Co (CRCC) and China Communications Construction received the LoI from the Transport Ministry several months ago.
The project, involving 197km of double-track rail on existing Keretapi Tanah Melayu Bhd alignment, was mooted more than a decade ago. The Chinese firms have been lobbying for it since then.
"The consortium has to source for Malaysian partners for the project and also meet the requirements of the Finance Ministry's industrial collaboration programme.
"They will have to put in a proposal for the final price negotiation so that the letter of award can be issued by next month. They are currently in negotiations with the Transport Ministry for the letter of award," said a source with knowledge on the matter.
On funding, the consortium will receive progressive payments from the government.
Tenders for the main packages were expected to be called in the first half of next year, said sources.
The consortium is led by CRCC, whose main partner is Fajarbaru Builder Group Bhd.
Fajarbaru's portfolio includes a RM289.44 million construction contract to extend the Ampang light rail transit line.
Previously, it won a RM316 million construction job for Package 2 (Tampin to Batang Melaka) of the Seremban-Gemas EDTP from India's Ircon International Ltd, the main contractor for the RM3.5 billion project.
The Gemas-Johor Baru EDTP is expected to be completed during the 11th Malaysia Plan, which ends in 2020, and will spur economic development in Johor.
The Transport Ministry had put up an advertisement last month to invite public inspection of the project plan, which details the route of the 197km double-track rail with the new alignment's designated speed at 160kph.
The ministry said it had submitted the route plan, details of the route alignment and other related items to the Land Public Transport Commission for the public inspection, which would end on January 26 next year.
The Gemas-Johor Baru EDTP will complement the current EDTP lines from the Klang Valley to Padang Besar, Perlis.
Malaysia has spent about RM24 billion on the EDTP from Port Klang to Batu Caves, Rawang to Ipoh, Ipoh to Padang Besar and Seremban to Gemas.
At the moment, only a single track links Padang Besar to Johor Baru.
sharen@mediaprima.com.my
Published in NST on November 4, 2015
PUTRAJAYA: A consortium of Chinese companies has been awarded a letter of intent (LoI) for the Gemas-Johor Baru electrified double-tracking project (EDTP) estimated to cost RM9.3 billion.
Business Times understands that state-owned companies China Railway Engineering Co, China Railway Construction Co (CRCC) and China Communications Construction received the LoI from the Transport Ministry several months ago.
The project, involving 197km of double-track rail on existing Keretapi Tanah Melayu Bhd alignment, was mooted more than a decade ago. The Chinese firms have been lobbying for it since then.
"The consortium has to source for Malaysian partners for the project and also meet the requirements of the Finance Ministry's industrial collaboration programme.
"They will have to put in a proposal for the final price negotiation so that the letter of award can be issued by next month. They are currently in negotiations with the Transport Ministry for the letter of award," said a source with knowledge on the matter.
On funding, the consortium will receive progressive payments from the government.
Tenders for the main packages were expected to be called in the first half of next year, said sources.
The consortium is led by CRCC, whose main partner is Fajarbaru Builder Group Bhd.
Fajarbaru's portfolio includes a RM289.44 million construction contract to extend the Ampang light rail transit line.
Previously, it won a RM316 million construction job for Package 2 (Tampin to Batang Melaka) of the Seremban-Gemas EDTP from India's Ircon International Ltd, the main contractor for the RM3.5 billion project.
The Gemas-Johor Baru EDTP is expected to be completed during the 11th Malaysia Plan, which ends in 2020, and will spur economic development in Johor.
The Transport Ministry had put up an advertisement last month to invite public inspection of the project plan, which details the route of the 197km double-track rail with the new alignment's designated speed at 160kph.
The ministry said it had submitted the route plan, details of the route alignment and other related items to the Land Public Transport Commission for the public inspection, which would end on January 26 next year.
The Gemas-Johor Baru EDTP will complement the current EDTP lines from the Klang Valley to Padang Besar, Perlis.
Malaysia has spent about RM24 billion on the EDTP from Port Klang to Batu Caves, Rawang to Ipoh, Ipoh to Padang Besar and Seremban to Gemas.
At the moment, only a single track links Padang Besar to Johor Baru.
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