Strong local interest in turnkey tender for MRT Circle Line project

Zohari said adopting the turnkey tender would allow MRT Corp to seek the best option for funding the project. — Picture by Choo Choy May
Zohari said adopting the turnkey tender would allow MRT Corp to seek the best option for funding the project. — Picture by Choo Choy May

KUALA LUMPUR, Jan 19 — Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) has announced that four consortiums have submitted turnkey tenders with financing for the MRT Circle Line as the tender submission closed yesterday.

Three out of the four submissions were consortiums comprising Malaysian companies, it said.

MRT Corp Circle Line Project Director, Datuk Zohari Sulaiman, said MRT Corp was pleased with the good response to the call for turnkey tenders for the Circle Line as the majority of the tenderers were local consortiums that had been able to fulfil the tender requirements.

“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,” he said in a statement today.

The four tenderers are Sapura-TIEC Consortium, MMC-Gamuda-George Kent Joint Venture (JV), Pacific-Mudajaya-JEC Consortium, and China Communications Construction Company Ltd-China Communications Construction Company (M) Sdn Bhd JV.

“An evaluation will be made based on three main evaluation criteria: technical, financial standing and financing package. A recommendation will then be submitted to the Ministry of Finance for decision and approval,” the company said, adding the contract was tentatively set to be awarded within the first quarter of 2018.

Zohari said adopting the turnkey tender would allow MRT Corp to seek the best option for funding the project, as “we will try and get the lowest cost in financing”.

However, in the event that the financing package options were not favourable, the company would revert to the old financing structure, that is, through Danalnfra Nasional Bhd, he added.

MRT Corp said it took the step 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, the company enforces requirement for Malaysian and Bumiputera participation as one of the conditions of the turnkey contract and stringent mechanism will be set in ensuring compliance by the successful tenderer.

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

The closing date for the submission was originally set for Dec 29, 2017, however, it was extended until Jan 18, 2018 as MRT Corp had received requests for extension by participating tenderers due to longer time required for them to finalise their best financing proposal.

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

The MRT Circle Line is expected to be 40km in length, of which some 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. — Bernama

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