RAIL BOON

Gamuda, IJM, AQRS, WCT, WZ Satu and Fa­jar­baru among firms vy­ing, say an­a­lysts

New Straits Times - - Business - AYISY YU­SOF AND ZARINA ZAKARIAH KUALA LUMPUR bt@me­di­aprima.com.my

LO­CAL con­trac­tors may be awarded up to 30 per cent of civil works worth about RM16.5 bil­lion in the East Coast Rail Link

project when the ten­ders are called at the end of this year or

early next year, say an­a­lysts.

LO­CAL con­trac­tors may han­dle at least 20-30 per cent of the civil works for the RM55 bil­lion East Coast Rail Link (ECRL) project through se­lec­tive bid­ding process, said an­a­lysts.

They named Gamuda Bhd, IJM Corp Bhd, Gabun­gan AQRS Bhd, WCT Hold­ings Bhd, WZ Satu Bhd and Fa­jar­baru Builder Group Bhd as those which could be vy­ing for the sub­con­tracts.

HSS En­gi­neers Bhd, mean­while, could win de­tailed de­sign con­tract for the project that spans 688km, ac­cord­ing to Af­fin Hwang Cap­i­tal Re­search.

“Lo­cal con­trac­tors could be ap­pointed as sub­con­trac­tors to do at least 30 per cent of the civil works worth about RM16.5 bil­lion,” said Af­fin Hwang.

An­a­lysts ex­pect the ten­ders to be called by year-end or early next year.

Prime Min­is­ter Datuk Seri Na­jib Razak will of­fi­ci­ate the project’s ground-break­ing cer­e­mony in Ban­dar Baru Kuan­tan, Pa­hang on Au­gust 9.

“The RM55 bil­lion ECRL is ex­pected to take off in the fourth quar­ter of 2017 with China Com­mu­ni­ca­tions Con­struc­tion Co Ltd (CCCC) ap­pointed as the main con­trac­tor and fi­nanc­ing from the Chi­nese gov­ern­ment se­cured,” said Af­fin Hwang.

Af­fin Hwang noted that Gamuda was ne­go­ti­at­ing for a sub­con­tract di­rect from CCCC as the for­mer has a strong track record in rail­way con­struc­tion, fol­low­ing the com­ple­tion of the RM12.3 bil­lion Ipoh-Padang Be­sar dou­ble-track­ing project.

MIDF Re­search an­a­lyst Fadhli Dzulk­i­fly said Gabun­gan AQRS and IJM would be strong con­tenders due to their pres­ence in Kuan­tan.

“Those com­pa­nies have trans­port-ori­ented de­vel­op­ment (TOD) sta­tions and build­ing con­struc­tion as well as civil and earth­works ex­per­tise,” he told NST Business yes­ter­day.

Fadhli said the ECRL ten­der is ex­pected to be in the first quar­ter of next year, with a 30:70 de­vel­op­ment ra­tio between lo­cal and for­eign con­trac­tors.

He be­lieves the bulk of the ECRL’s por­tion would be given to state-owned en­ter­prises like CCCC, while the sub­con­trac­tors could be like China Rail­way Group Ltd and China Rail­way Con­struc­tion Cor­po­ra­tion (CRCC).

Mean­while, Pub­lic In­vest­ment Bank Bhd ex­pects lo­cal con­trac­tors to get at least 20 per cent of the por­tions in the ECRL project.

It said there was no in­di­ca­tion from the gov­ern­ment on how much it will go to the lo­cal con­trac­tors.

“Our meet­ing with the lo­cal con­trac­tors in­di­cated about 20 per cent of the project to given to the lo­cals,” said a PublicIn­vest an­a­lyst.

Ke­nanga In­vest­ment Bank Re­search said there are high chances of more than 30 per cent par­tic­i­pa­tion from the lo­cal con­trac­tors.

“If Gamuda takes the sub-con­trac­tor job, it will be con­firmed more por­tions for the lo­cal con­trac­tors to par­tic­i­pate. The ra­tio could be more than 30 per cent due to vast ex­per­tise in Gamuda as there is some­thing other con­trac­tors have not ex­pressed their in­ter­est in par­tic­i­pat­ing in sub­con level,” it added.

FARIZUL HAFIZ AWANG PICBY

Af­fin Hwang Cap­i­tal Re­search says lo­cal con­trac­tors may be ap­pointed as sub­con­trac­tors to do at least 30 per cent of the East Coast Rail Link project’s civil works worth about RM16.5 bil­lion.

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