LRT3 to cost more
Analysts estimate value rising to RM12bil based on contract awards
PETALING JAYA: The cost of the light rail transit line 3 (LRT3) from Bandar Utama to Johan Setia, Klang, is likely to be higher than the RM9bil figure previously touted.
Construction analysts estimate the figure to be higher based on the recent contract sizes that have been awarded by Prasarana Malaysia Bhd.
When contacted by StarBiz, Prasarana said that it was still at the tendering and award stage and the cost had not been determined yet.
“The total cost can only be determined once all the packages have been awarded,” said a spokesperson for Prasarana.
There are some 12 packages under the civil works portion, which construction analysts said roughly consists of one tunnel package, one depot package and 10 guideway and station (GS) packages. It isn’t certain how many packages there are under the systems portion.
Generally, the packages are between RM800mil and RM1bil, with the biggest being a RM2bil package for one GS job, said an analyst.
On Tuesday, TRC Synergy Bhd secured the much-coveted RM760.55mil depot package from Prasarana for the construction and completion of the Johan Setia depot (Phase 2).
Last week, WCT Holdings Bhd received the RM840mil Package GS03, which is for the construction and completion of the guideway, stations, park and ride, ancillary buildings and other associated works for construction and completion of the LRT3.
One construction analyst said that using a back-of-the-envelope calculation, the cost of the LRT3 appears to be closer to RM12bil.
“For example, WCT Holdings was awarded the GS03 package for RM840mil. That is a 2.8-km stretch with a station.
At RM840mil, that is eactly RM300mil per km. The whole project is around 37km, which comes up to about RM11.1bil.
“The depot is estimated at RM760mil, making the cost closer to RM12bil,” said the construction analyst.
Furthermore, another construction analyst said that the LRT3 also has a tunnelling portion of some 2.6km out of the 37km. That portion should definitely be more expensive that the other normal stretches.
Malaysian Resources Corp Bhd and George Kent (M) Bhd are the project delivery partners (PDP) for the LRT3 project and are entitled to a 6% management fee of the total contract value.
In return, the PDP is to ensure that the project is completed within the contracted cost and according to the schedule.
A railway consultant said that the cost tends to go higher than the original estimate if the contracts awarded come with options for changes.
“When there are options, the cost will be higher.
“After the contract has been awarded, the PDP has to ensure that the job is done within specifications and cost,” he said.
To-date, Prasarana has awarded the systems work packages, and is now in the midst of awarding the civil work package tenders. Some 40% of the total contracts will be awarded to bumiputra contractors.
KAF Securities in a report on Tuesday said that the award of package GS3 could kickstart the rollout of other major civil work packages under the LRT3.
“More importantly, it could be the first of three major civil works packages worth a combined RM2.5bil that Prasarana intends to award in the near term.
“Excluding the tunelling contract, we understand that the large civil works contract could be worth approximately RM1bil.”
TRC has won the RM760.55mil depot pack- age, while in April, WCT Holdings secured a RM185.9mil contract from Prasarana to build the Johan Setia depot and associated works.
Mudajaya Group Bhd also won a small RM58.3mil contract under Package PC3 of the LRT3 back in April.
“Gamuda Bhd is the frontrunner for the 2.6-km tunnel package, as a boring machine is needed for this work package,” said the construction analyst.
Other names being touted as potential beneficiaries are IJM Corp Bhd, Gabungan AQRS Bhd and Fajarbaru Builder Group Bhd. Suppliers of building materials, namely, Lafarge Malaysia Bhd and Ann Joo Resources Bhd are also beneficiaries.
On the systems packages side, Prasarana had last month awarded a rolling stock work package worth RM1.56bil to a consortium comprising China’s CRRC Zhuzhou Locomotive Co Ltd, Siemens Ltd China and Tegap Dinamik Sdn Bhd.
LRT3 is a double-track rail alignment of 37km with 26 stations covering the areas of Bandar Utama, Shah Alam and Klang, before terminating at Johan Setia.
The LRT3 envisages to connect two million people between Bandar Utama and Klang by 2020 and is developed in line with the Greater Kuala Lumpur/Klang Valley Land Public Transport Masterplan.