MRCB in line for RM1b MRT job (1651)

Malaysia Resources Corp Bhd (MRCB) is expected to win a contract worth about RM1 billion this week for the Sungai Buloh-Kajang (SBK) MY Rapid Transit (MRT) line.


If awarded, this will be the first railway-related job for MRCB this year.

MRCB, which is 42 per cent owned by the Employees Provident Fund, also won a RM1.33 billion contract for the Ampang light rail transit (LRT) extension project in August 2011.

The MRT contract is expected to boost MRCB's existing order book to more than RM2.5 billion.

Business Times learnt that the latest contract is to build viaduct guideways and other associated works between the Taman Mesra and Kajang stations.

Project owner Mass Rapid Transit Corp Sdn Bhd (MRT Corp) was not immediately available for comments.

Kenanga Investment Bank Bhd recently pegged a target price of RM2.71 per share for MRCB based on sum-of-parts valuation.
Other analysts placed a target price of as high as RM3.10 on MRCB. The stock closed at RM1.73 last Friday.

There are eight viaduct work packages available for the SBK line and seven have been awarded by MRT Corp.

The other winners are Gadang Holdings Bhd, Mudajaya Group Bhd, IJM Corp Bhd, Ahmad Zaki Resources Bhd, Sunway Construction Sdn Bhd, MTD Construction Sdn Bhd and Syarikat Muhibbah Perniagaan & Pembinaan Sdn Bhd.

Sources close to MRT Corp said it was also expected to award several contracts to build stations and a depot over the next few weeks.

This includes a contract worth RM1.6 billion to supply trains for the SBK line.

MRT Corp has received bids from Changchun Railways Vehicle Co Ltd, Siemens SMH Rail Consortium and CSR Zhuzhou Electric Locomotive Co Ltd to supply the trains.

"The awarding of contracts for the SBK line is progressing smoothly. Those interested companies will not have to wait too long to know the status of their bid. MRT Corp is evaluating all bids cautiously.The award of contracts will be transparent," the source said.

So far, MRT Corp has awarded 33 contracts valued at RM15.5 billion for the SBK line.

There are 21 contracts in the process of evaluation. The remaining 31 contracts will be awarded by the end of this year.

The final value of the SBK Line stretching 51km will be determined by the end of this year after all 85 contracts have been awarded.