Local consortiums, China JV tender for MRT Circle Line

It proves that project still gives opportunity to local companies

KUALA LUMPUR: Three Malaysian consortiums and a China joint venture (JV) have submitted their turnkey tenders with financing for the MRT Circle Line when the tender submission closed on Thursday.

Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said in a statement that the consortiums were Sapura-TIEC Consortium; MMCGamuda–George Kent JV; Pacific-MudajayaJEC Consortium and China Communications Construction Co Ltd-China Communications Construction Co (M) Sdn Bhd JV.

MRT Corp Circle Line project director Datuk Zohari Sulaiman said it was pleased with the good response to the call for turnkey tender for the Circle Line. “The majority of the tenderers are local consortiums that have been able to fulfil the requirements in participating in this tender,” he said.

“The resulting participation in tender which commenced on Nov 15, 2017 has proven critics wrong, especially those who said that the turnkey tender model would close the opportunity for local companies to participate,” added Zohari.

The closing date for the submission was originally set for Dec 2, 2017. However, it was extended until Thursday as MRT Corp have received requests for extension by participating tenderers due to longer time required for them to finalise their best financing proposal.

MRT Corp will then carry out an evaluation based on three evaluation criteria – technical, financial standing and the financing package. A recommendation will then be submitted to the Finance Ministry for decision and approval. The contract is tentatively set to be awarded within the first quarter of this year.

The MRT Circle Line is expected to be 40km in length, of which about 32km will be underground with 26 stations planned along the alignment.

The line, which will run around the periphery of Kuala Lumpur city centre, will intersect with all of the Klang Valley’s urban rail network, expanding its coverage significantly and providing greater mobility to commuters.

With the closing of tender, MRT Corp will now be working on the preparations for other activities including the detailed forecast ridership study, detailed environmental impact assessment, social impact assessment and heritage impact assessment.

Zohari said the turnkey tender allowed MRT Corp to seek the best option for funding the project, “as we will try and get the lowest cost in financing”. He also said if the financing package options were not favourable, “we will revert to the old financing structure that is through DanaInfra”.

MRT Corp decided to tender the project out on a turnkey basis as opposed to a direct appointment of contractor or a consortium, as this would encourage a more competitive financing option for the new project structure.

To ensure strong local participation in the project, MRT Corp enforces requirement for Malaysian and bumiputra participation in the project as one of the conditions of the turnkey contract.

Stringent mechanism will be set in ensuring compliance by the successful tenderer.

“MRT Corp will ensure that our Bumiputra Agenda is carried on with the Circle Line, as how we have been championing for the first and second MRT line, the MRT Sungai BulohKajang Line and the MRT Sungai BulohSerdang-Putrajaya Line,” said Zohari.