OSK's picks for RM7b LRT project

Published: 2010/04/29

Several companies seem to have an edge among the 17 pre-qualified applicants to be the main contractor for the RM7 billion Light Rail Transit (LRT) project covering the Kelana Jaya and Ampang lines, says OSK Research.

In an investment research report today, OSK, which has maintained its overweight rating on the construction sector, also named Gamuda, IJM, WCT, MRCB and Mudajaya as among the potential winners based on their track record.

The LRT project is set to begin later this year and the contract will reportedly be awarded in the next two months.

The full list of pre-qualified applicants comprises
.Sunway Holdings,
..Fajarbaru Builder - Signatium Construction SB,
...WCT - Sinohydro JV,
....IJM Corp,
.....Ranhill - CCCC JV,
.Muhibbah Engineering,
..Gamuda,
...UEM Builders - Intria Bina SB,
....MMC Corp - Zelan,
.....MRCB,
.TRC Synergy,
..BPHB - Tim Sekata JV,
...Zabima - Leighton JV,
....Mudajaya Group,
.....MTDC -Persys JV,
.Loh&Loh Corp and
..Ahmad Zaki Resources.


"We expect the bidding competition among the prequalified contractors to be intense.

"While it is rather difficult to pinpoint the likely winner at this juncture, contractors with a relevant track record, have a better chance," OSK Research said.

OSK Research indicated that Gamuda had the necessary expertise to undertake the job, given its experience with the Kaohsiung MRT in Taiwan.

It noted too that IJM and Road Builders were among the main sub-contractors for the existing line.

"On the other hand, MRCB was involved in the existing LRT portion at KL Sentral," it said.

It also said Mudajaya is a likely beneficiary as it previously constructed some stations for the current line and was also involved in the KLIA transit track.

UEM Builders, according to OSK Research, was the main contractor for the current line.

"As pricing is the key determinant, we think competitive contractors like WCT, to also stand a strong winning chance," OSK Research said.

The 17km Kelana Jaya line will have 13 stations, extending from the existing Kelana Jaya station into Subang Jaya and USJ.

The 17.7km Ampang line meanwhle, has 13 stations and will begin from the existing Sri Petaling station, and pass through Kinrara in Puchong.

Both lines end at Putra Heights, which will also serve as an interchange.

Syarikat Prasarana Negara Berhad (SPNB) has submitted the final Railway Scheme to the Department of Railways and is awating approval before construction commences. -- Bernama