Mass Rapid Transit Corp Sdn Bhd (MRT Corp), the project developer and asset owner of MRT3, issued three tender notices for the civil main contractor (CMC) packages last Friday. The packages comprised the bulk of the construction cost of MRT3 at RM31bil in total based on initial estimations by MRT Corp.
PETALING JAYA: The issuances of tenders for the Mass Rapid Transit 3 (MRT3) Circle Line project are a shot in the arm for the construction sector.
They will boost the sector in terms of revenue generation and the multiplier effect from construction activities will be among the largest for the economy.
Mass Rapid Transit Corp Sdn Bhd (MRT Corp), the project developer and asset owner of MRT3, issued three tender notices for the civil main contractor (CMC) packages last Friday. The packages comprised the bulk of the construction cost of MRT3 at RM31bil in total based on initial estimations by MRT Corp.
MIDF Research, which is maintaining its “positive” stance on the sector, said the government’s commitment in pushing through mega infrastructure projects, starting with the MRT3, is a positive development for the construction sector.
The research house said MRT Corp has kept to its projected timeline of events since the government’s approval of the MRT3 in March.
“We are confident that the tenders would be awarded in the fourth quarter of the year as expected and for construction activities to kick off in the first quarter of next year.
“This will keep the construction players busy until 2030 with strong order book replenishments and the much-needed earnings visibility.
The revival of the MRT3 has injected optimism into the sector and MIDF said this might be a prelude to the potential revival of other mega projects that were canned after a change of government in 2018.
One of the projects is the Kuala Lumpur –Singapore High Speed Rail (HSR), it said, adding that the governments of Malaysia and Thailand have also agreed to set up a joint special committee to fine-tune matters for a proposed KL-Bangkok HSR.
The potential beneficiaries of the MRT3 project, according to MIDF Research, is Gamuda Bhd
which will seize the lion’s share of the MRT3, which is a CMC303.
The CMC303 is the design, construction and completion of viaduct guideway, tunnels, stations, ancillary structures and other associated works from Pantai Dalam to Jalan Kuching in Kuala Lumpur.
“It is as good as shovel ready for the project, premised on its joint venture outfit MMC-Gamuda with vast experiences in MRT1 and MRT2. Earlier this year, Gamuda was awarded a RM6.5bil tunnelling project in Sydney and a RM1.45bil contract to build a station and two tunnels in Singapore, together with its Singapore joint-venture partner, which are testaments to its tunnelling expertise,” it said.Recall that on April 4, Gamuda had received a conditional offer from Amanat Lebuhraya Rakyat to take over its four highway toll concessions for RM5.48bil.
The group would receive cash proceeds of RM2.3bil, which would allow it to strengthen its balance sheet to a net cash position of RM584mil, placing it in a favourable position for the upfront financing requirement of the MRT3 job.
The other potential frontrunners are construction giants IJM Corp Bhd and Sunway Construction Group Bhd, both of whom have vast experience in rail projects such as the light rail transit and the MRT.
Other potential beneficiaries include WCT Holdings Bhd, Gabungan AQRS Bhd, Malaysian Resources Corp Bhd and Malayan Cement Bhd.
