On track: Loke (centre) witnessing the signing of the agreement between MRT Corp and SRS Consortium for the Penang LRT project’s first segment. — CHAN TAK KONG/The Star
KUALA LUMPUR: The civil and structural works contract for the first segment of Penang’s first Light Rail Transit (LRT) project is estimated at RM8.31bil, says Transport Minister Anthony Loke.
He said the cost may be subject to further revisions, adding that while the RM8.31bil sum excludes land cost, Putrajaya will negotiate to keep the cost nominal.
“One of the conditions of the Federal Government is that any land belonging to the state must be (priced) at a nominal basis. Of course, they cannot charge us market value.
“Even though the Chief Minister (of Penang) is from my party, we (the Federal Government) will negotiate (with the state) at arm’s length,” he added.
The Gamuda Bhd-led SRS Consortium Sdn Bhd, which was awarded the contract for the first segment (Civil Main Contract 1), signed the deal yesterday with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp).
Loke said the Federal Government offered the contract to SRS Consortium through the “single sourcing request for proposal” mechanism.
He said the contract was not given out through a direct award as the consortium had undergone an open tender process in 2015 for the Penang Transport Master Plan project.
This was also why Putrajaya decided to proceed with the tender decision, he said, adding that additional processes were carried out to look into the cost and scope.
“The Cabinet decision is not merely a financing commitment but an affirmation of the Federal Government’s determination in ensuring that Penang benefits from the necessary financial and technical support to carry out this meaningful project,” he said.
Speaking to reporters after the signing ceremony yesterday, Loke said the Federal Government agreed in March last year to take over the LRT Mutiara project from the Penang government and appointed MRT Corp as the project developer and asset owner following the Cabinet’s approval.
He said infrastructure works are expected to begin in the second or third quarter of the year for the first segment, though the consortium can begin work immediately as the deal has been inked.The LRT project comprises three tender packages. The tender process for the second civil main contract will open in July.
“We expect it to be awarded by early next year, but it will not affect the current work because this is ongoing,” said Loke, adding that the first package could take up to six years to complete.
“I assume the second package will not take six years as it is a shorter alignment with just a few kilometres,” he said, referring to the second segment that will link Komtar to Penang Sentral.
The tender process for the third package is ongoing and expected to close in April.
Loke said his ministry aims to ensure 40% participation of bumiputra contractors in the project.
Under the Civil Main Contract 1, SRS Consortium is the main contractor for civil and structural works for the first segment of the LRT Mutiara Line project from Penang South Reclamation Island- A to Komtar, covering 24km.At the signing ceremony yesterday, MRT Corp was represented by its chief executive officer Datuk Mohd Zarif Mohd Hashim while Gamuda deputy group managing director Datuk Ha Tiing Ta signed on behalf of SRS Consortium.The ceremony was witnessed by Loke, Transport Ministry secretary-general Datuk Jana Santhiran Muniayan, and MRT Corp chairman Tan Sri Dr Bashir Ahmad Abdul Majid.
SRS Consortium is 60% owned by Gamuda Bhd with Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd holding a 20% stake each.
The consortium was previously appointed by the Penang government as the project delivery partner for the Penang Transport Master Plan in 2015.
The entire Mutiara Line will span 29km with 21 stations.
