Update MMC-Gamuda bags largest MRT2 contract worth RM15.5b

by **Cals** Fri 01 Apr 2016, 08:14

Update

[size=28]MMC-Gamuda bags largest MRT2 contract worth RM15.5b

By Gho Chee Yuan / theedgemarkets.com | March 31, 2016 : 4:29 PM MYT

KUALA LUMPUR (March 31): MMC Gamuda KVMRT (T) Sdn Bhd (MGKT) has bagged the largest work package for the construction of the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line, also known as MRT2, valued at RM15.47 billion.

The underground works package involves the design, construction and completion of tunnels, underground stations and associated structures, such as portals and escape shafts for the SSP Line's 13.5km underground alignment from the Jalan Ipoh North Escape Shaft to the Desa Waterpark South Portal.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) said the award to MGKT, which is a joint venture between leading engineering construction groups, MMC Corporation Bhd and Gamuda Bhd, was made following a One Stop Procurement Committee meeting, chaired by Prime Minister Datuk Seri Najib Razak.

"The successful contractor for the underground works package had a proven track record in carrying out tunnelling and other underground works in the challenging geology of the Klang Valley," MRT Corp chief executive officer Datuk Seri Shahril Mokhtar said in a statement.

Shahril said MGKT was selected on the basis of best evaluated tender, where it was evaluated on technical and commercial criteria.

"This meant that the successful tender might not always be the one with the lowest price," he explained. "Nevertheless, for this tender, I can reveal that the best evaluated tender had the best score for the technical evaluation and also had the lowest price."

MRT Corp said MGKT was one of five companies shortlisted during a pre-qualification exercise carried out in June 2015. The other four companies are China Railway Group Ltd (CREC), China Communications Construction Co Ltd, Taisei Corporation, and Hyundai Engineering and Construction Co Ltd.

However, only MGKT, CREC and China Communications Construction Company Limited (CCCC) submitted tenders, said MRT Corp.

This is the third major civil and infrastructure works package to be awarded for the SSP Line.

The first, worth RM1.44 billion, was awarded to Ahmad Zaki Sdn Bhd for the construction of the viaduct guideway and other associated works for a 4.5km elevated guideway from Persiaran Dagang, Bandar Sri Damansara to Jinjang.

Earlier this week, Sunway Construction Sdn Bhd clinched a RM1.21 billion contract for the construction of the viaduct guideway and other associated works for a 4.9km stretch of elevated alignment from Sungai Buloh to Persiaran Dagang, Bandar Sri Damansara, worth RM1.21 billion.

The SSP Line is 52.2km in length, of which 13.5km will run underground. It will have 37 stations, 11 of them being underground stations.

In total, there are 66 work packages being tendered for the construction of the SSP Line. They include 10 viaduct guideway packages, one underground works package, two depot work packages, 10 station work packages, and 15 multi-storey park and ride work packages.

The remaining tenders are for Advance Works, Connectivity, Systems, Designated Suppliers and Designated Contractors.

As at 3.02pm, shares in Sunway Construction Group Bhd fell one sen or 0.61% to RM1.63, for market capitalisation of RM2.16 billion. Ahmad Zaki Resources Bhd inched down half a sen or 0.71% at 70 sen, giving it a market value of RM345.73 million.

Gamuda was up four sen or 0.82% at RM4.92 for RM11.80 billion; while MMC Corp gained three sen or 1.42% at RM2.14, giving it a market value of RM6.30 billion as at 3.06pm.
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