MRT 2 awards to kick off soon

The Klang Valley Mass Rapid Transit system (KVMRT) project under way is proving opportunities for construction players including Kimlun which specialises in tunnel claddings.

KUALA LUMPUR: The total value of Klang Valley MRT2 (KVMRT2) is expected to exceed the initial estimate of RM28bil and the major awards from the KVMRT2 to be announced two to three months ahead of the timeline, according to Maybank Investment Bank Research.

The research house said following the recent Pan Borneo Highway Sarawak award of some work packages, the KWMRT2 could be the next key profit to start rolling out major jobs in March/April, two to three months earlier than expected.

“The total cost of the KVMRT2 could be higher at RM30bil to RM33bil than the initial estimate of RM28bil. The RM28bil had accounted for a longer underground tunnel (by circa 42%) and more underground stations compared to the KVMRT 1,” Maybank said, adding that it had imputed about a 10% increase in overall cost per km.

It said recent estimates were for the total cost to exceed the initial RM28bil as bidders were mandated to budget for safety costs and having imputed higher imported material and equipment costs due to the weakened ringgit.

It added that the impending foreign worker levy hike would lift manpower cost.

Maybank said the higher project value indicated that there would be higher job replenishment for the construction companies. It said the existing contractors for the KVMRT 1 who are more experienced and have charted strong track records would have added advantage in bidding for KVMRT 2.

“MMC-Gamuda would be the biggest beneficiary as the potential winner of the KVMRT 2 underground works given that the value could be significantly higher versus RM8bil under the KVMRT 1.

“As for the elevated packages, the existing KVMRT 1 players are in stronger position to win from KVMRT 2. Job win value could exceed expectation too if they clinch the more challenging packages,” Maybank said.

On other potential beneficiaries, Maybank said Kimlun and MTD ACPI stood to clinch the segmental box girders supply contracts.

Meanwhile, piling players including Econpile, Pintaras Jaya and Ikhmas Jaya would benefit from subcontract jobs from the main contractors.

Elsewhere, the equipment suppliers that are listed include EITA Resources that supply lifts, travellators and escalators, would benefit at a later stage.