MRCB secures RM3bil Penang LRT contract


Artist's impression of the proposed Penang LRT railway system.

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has secured a RM3.028bil contract for the railway systems package of the Penang light rail transit (LRT) Mutiara Line project.

In a filing with Bursa Malaysia, MRCB said its 90:10 unincorporated joint venture with Theta Edge Bhd, known as MRCB-Theta Edge JV, has been appointed as the turnkey contractor for the engineering, procurement, design, construction, testing, commissioning and maintenance of the railway system under Package STC.

The 68.8-month contract covers the design, supply, installation, testing, commissioning and maintenance of the Penang LRT’s railway systems.

This includes the trains, signalling, power supply, telecommunications and ticketing systems.

“The project is expected to contribute positively to the future earnings of MRCB Group,” it said.

“The project will be exposed to normal construction risks.

“These include materials and equipment price fluctuations.

“However, given its past experience and expertise in delivering large infrastructure projects, MRCB is well placed to mitigate these risks through its existing controls, measures and operational procedures,” it added.

Shares of MRCB rose 4.84% to 32 sen at the time of writing yesterday, translating to a market capitalisation of RM1.45bil.

Year-to-date, its shares are down by 14.5%.

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