AmWatch - Construction Sector : Six shortlisted for LRT3 PDP OVERWEIGHT

SECTOR FOCUS OF THE DAY

Construction Sector : Six shortlisted for LRT3 PDP              OVERWEIGHT

The Edge Malaysia reported that Syarikat Prasarana Negara Bhd (SPNB) has shortlisted six parties for the Project Delivery Partner (PDP) role for the RM9bil Klang Valley LRT Line 3 (LRT3) from Bandar Utama to Klang. The six are: (i) a JV between Gamuda and MMC; (ii) a tie-up between Malaysian Resources Corp (MRCB) and George Kent; (iii) UEM Group; (iv) Naza TTDI; (v) Sunway; and (vi) a joint-effort between WCT and Alloy MTD Group.

The tenders for the PDP contract closed late last year, and could be dished out by June. This validates our earlier view that construction works on the LRT3 project could kick off by the end of this year.  Except for Naza TTDI, the other five candidates have the requisite experience in undertaking rail-related projects. The MMC-Gamuda JV has the most extensive portfolio of rail-related projects under its belt as the PDP for the Klang Valley MRT 1 & 2 lines, as well as the tunnelling contractor for MRT 1. The JV had also teamed up for the Ipoh-Padang Besar Electrified Double Tracking (EDT) Project. Overseas, Gamuda was the contractor for the Kaohsiung MRT line in Taiwan.

MRCB is the developer of the KL Sentral Transport Hub and has been linked with several other rail-related projects in the past, notably the upgrading of the Klang Valley double-tracking system. Its partner, George Kent, won a system works job for the Ampang LRT line extension last July together with Lion Pacific. UEM was previously involved in the construction of the KL Light Rail Transit System 2 (Kelana Jaya line), Ipoh-Rawang EDT and two ongoing jobs for the MRT 1 line. A fair chunk of Sunway’s outstanding orderbook consists of rail and transport related jobs that include the MRT 1 package V4, LRT Extension Package B and the Sunway Bus Rapid Transit project.

Along with the upcoming MRT 2 line, we believe the LRT3 project should galvanise newsflow momentum for Malaysian contractors moving into 2Q15. With MMC-Gamuda JV being the PDP for MRT1 and 2, we think that MRCB-George Kent JV could be a frontrunner given their combined experience in rail works and MRCB’s experience in managing KL Sentral Transport Hub.

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