KUALA LUMPUR: Malaysian contractors are expected to benefit the most from the spillover from the Kuala Lumpur-Singapore High Speed Rail (HSR) project’s civil works portion, says CIMB Equities Research.
It said on Monday the deadline for the project’s asset-holding company (AssetsCo) role was extended by six months, from June 28 to Dec 28, 2018. The AssetsCo will be led by a foreign HSR expert likely via a JV with a local rail systems works player.
The AssetsCo will be responsible for designing, building, financing and maintaining all rolling stock as well as designing, building, financing, operating and maintaining all rail assets, such as track work, power, signalling and telecommunications.
The AssetsCo will also manage the system network for operations and maintenance needs.
“Based on our checks, we understand that the AssetsCo bid extension will not impact the timing and progress of the RM30bil to RM40bil project delivery partner (PDP) scope," it said.
Subsequent to the two letters of intent (LOIs) granted to MRCB-Gamuda JV and YTL-THP JV on April 5, CIMB Research expects the official letter of awards (LOA) to be formalised by end-April, including the details of the PDP fees.
The PDP LOA presentation is therefore set to take place before the General Elections on May 9.
“We gather that a certain portion of the HSR alignment is targeted to begin construction works in 2019, implying that there could be some HSR contracts awarded over the next six to nine months.
“So far, the only known consortiums that have expressed interest to bid for the AssetsCo are George Kent (Malaysia), YTL Corp and MMC Corp,” it said.
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