Malaysia's MRT Corp Expects To Award MRT3 Turnkey Project Contract By February - CEO

Nikkei Asian Review, 13 November 2017

KUALA LUMPUR (Nov 13) -- Malaysia's Mass Rapid Transit Corporation expects to float turnkey project contract for construction of MRT3 track and announce successful bidder by February, its chief executive said Monday.

The company plans to start construction for the project, expected to spread over 75 months, in the third quarter of 2019, Shahril Mokhtar said at a news conference in Kuala Lumpur.

On Nov. 7 local construction stocks fell after MRT3's tender details were released. MRT invited companies to participate in its tender to select a turnkey contractor to both build and finance. It is speculated that local companies are not keen on the financing role. Scrapping a role of a project delivery partner also led to disappointment.

"I do not think that this puts Malaysian companies at a disadvantage," Shahril said. "I'm sure that after all these years, there are Malaysian companies, which have the capability to both handle the works as well as be able to arrange financing of their projects."

"Malaysian companies can come together to form a consortium, together with foreign companies especially for the system works component, to bid for the turnkey tender," he said.

The company expects to save interest cost via turnkey project contract that involves construction of 32 kilometres of twin-bored tunnels and 8 kilometres of elevated viaducts, Shahril added.

If no successful bidder emerges, the company may give construction mandate to DanaInfra Nasional, a finance ministry-owned enterprise, he said.

(Web source: https://asia.nikkei.com/Markets/Nikkei-Markets/Malaysia-s-MRT-Corp-Expects-To-Award-MRT3-Turnkey-Project-Contract-By-February-CEO)