Analysts: LRT3 cost reduction will affect MRCB orderbook size

KUALA LUMPUR: Analysts have acknowledged that the 47 per cent cost reduction of the Light Rail Transit 3 (LRT3) project will affect Malaysian Resources Corporation Bhd’s (MRCB) orderbook size.

However, it is too early to tell the quantum of the impact, as official numbers have not been announced by MRCB and George Kent (Malaysia) Bhd in their role as the project’s Project Delivery Partner (PDP).

A MRCB-George Kent joint venture (MRCB-GK JV) spokesman told NST Business yesterday that it was too early to tell on the quantum of the impact, as the PDP had yet to receive official notice.

However, the PDP joint venture will hold a media briefing to explain the impact of the cost reduction as early as next week.

Besides the PDP appointment, Prasarana Malaysia Bhd, the project owner of LRT3, had given out RM7.4 billion worth of LRT3 tenders as at November.

Sunway Construction Group Bhd (SunCon) came up as the biggest winner following the letter of award from Prasarana worth RM2.18 billion for the project.

SunCon’s award was for Package GS07-08 from Bandar Utama to Johan Setia in Klang.

The contract, which boosts SunCon’s outstanding orderbook to RM6.5 billion, is its largest single project in 36 years.

Other winners of big LRT3 tenders are Mudajaya Group Bhd, WCT Holdings, CRRC Zhuzhou Locomotive Co Ltd- Siemens Ltd China-Tegap Dinamik JV, TRC Synergy and Gabungan AQRS Bhd.

MRCB and George Kent share prices were unaffected by the government’s announcement on the project’s cost reduction. MRCB closed 16 sen higher yesterday at 74 sen, while George Kent closed 30 sen higher at RM1.29.