Malaysian firms can bid for MRT Line 3

By SHAREN KAUR for NST Business- November 13, 2017

KUALA LUMPUR : The chief for Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said that tenders for the third Klang Valley MRT (KVMRT) line is open to both local and foreign firms.

According to chief executive officer Datuk Seri Shahril Mokhtar, local civil infrastructure companies can bid for the turnkey contract by forming a consortium or joint ventures (JV) with foreign players who have the technical expertise and know how.

As for the financing proposal, Shahril said that the tenderer would act as a "match-maker" for MRT Corp.

"As a match-maker, they would be involved in getting the financing in place for the MRT Line 3 development. We strongly believe that this method of developing the MRT Line 3 will save a lot of public money," Shahril said here today.

Shahril had said that the turnkey financing model is aimed at attracting foreign companies who may provide better financing options for MRT3.

The development of the MRT Line 1 and MRT Line 2 were based on the PDP (project delivery partner) model to ensure the on-time delivery of the projects.

MRT Corp recently invited construction and infrastructure development firms to participate in the tender process to build the MRT Line 3 on a turnkey basis.

The MRT Corp tender announcement followed Prime Minister Datuk Seri Najib Razak’s Budget 2018 speech on October 27, where he said that the government will expedite the construction of MRT3 and expects it to be completed by 2025, earlier than the initial target of 2027.

According to the notice of tender, MRT Corp said the successful applicant will be responsible for the engineering, procurement, construction, testing and commissioning of the 40km MRT3 line, featuring 32km of twin-bored tunnels and 8km of elevated viaducts.

The successful tenderer is also expected to develop tunnels, viaducts, stations, depots, trackworks, rolling stock, signalling, power supply and other related structures.

In order to qualify and participate in the tender process, MRT Corp said prospective applicants must meet the minimum financial capacity of having a paid-up capital and a shareholder’s fund that is not less than RM5 billion.

As for the financing proposal, MRT Corp said it should include a minimum financing period of 30 years, with a drawdown period of up to 2028, while the margin of financing must not be less than 90 percent of the expected total project cost.

A tender briefing for the MRT Line 3 will be held this Wednesday.