Apr 29, 2010

17 main contractors shortlisted for LRT extensions


According to the Syarikat Prasana Negara, 17 contractors have been prequalified to be the main contractor for the Malaysia RM7-8bn LRT extensions. Also, 15 companies were prequalified as nominated subcontractors for the fabrication and delivery of segmental box girders. Syarikat Prasana Negara’s group MD was quoted in saying that the final railway scheme has been submitted to the Department of Railways and is waiting final approval from the government. Construction will commence post the approval. There was no mention on whether both the Kelana Jaya and Ampang extensions will kick off simultaneously but we understand the priority is for the first 9.2km stretch of the Kelana Jaya line.  

The 32 main and subcontractors were shortlisted out of 118 which had submitted their prequalification tenders in December 2009. Contractors vying for the main contractor role are the UEM Builders and Intria Bina JV, IJM, Sunway, Gamuda, Loh & Loh, WCT-Sinohydro, MMC-Zelan, Ranhill-China Communication Construction Company Ltd, Fajarbaru Builders-Signatium Construction, Muhibbah Engineering, MRCB, Trans Resources, BPHB-Tim Sekata, Zabima-Leighton, Mudajaya, MTDC-Persys and Ahmad Zaki. 

As for the subcontractors, all of the main contractors names are also present except for Gamuda, Loh & Loh, Mudajaya and Trans Resources Corp. 

5 companies under our coverage are in the running for the main contractor role – Gamuda (BUY, TP RM4.45), IJM (BUY, TP RM6.00), MRCB (BUY, TP RM2.25), Sunway (BUY, TP RM1.95) and WCT (FV, TP RM2.25). Based on balance sheet strength and past experience alone, we think Gamuda and IJM are the strongest contenders. In any case, IJM, MRCB, WCT and Sunway have also been shortlisted for the subcontractor role which hedges their bets somewhat. Another non-listed GLC contractor which we think is also a front runner is UEM Builders. While no indication on values have been given for the main and subcontractor roles, we expect the chunkier portion to be skewed to the main contractor.

by HWDBS Vickers Research