Thursday, 3 May 2018

(The Star) Gamuda-MRCB consortium accepts LoA for KL-S'pore HSR project

PETALING JAYA: The consortium of Gamuda Bhd and Malaysian Resources Corp Bhd (MRCB) has accepted a letter of appointment (LoA) from MyHSR Corp Sdn Bhd to be the project delivery partner (PDP) for the northern section of the Kuala Lumpur-Singapore high-speed rail project.

Both Gamuda and MRCB made individual filings with Bursa Malaysia with regards to being awarded the LoA.

The PDP tender for the project was first called on Nov 22, 2017 and was conducted via an open tender by MyHSR.

The MRCB-Gamuda consortium had first received a letter of intent from MyHSR on April 5, informing them of MyHSR’s intention to award them the northern PDP package.

The northern section runs from the Bandar Malaysia station to the first standard viaduct pier on the south side of the Melaka Station.

The appointment of MRCB-Gamuda Consortium is conditional upon the submission of two conditions to MyHSR within 14 days from the date of the LoA.

These conditions are a commitment bond in the amount of RM5mil and a corporate guarantee to be issued by the parent company of each member of the consortium.

Upon fulfillment of the conditions, an article of agreement will be executed between the consortium and MyHSR by June 1.

“The project shall be novated to a PDP company known as MRCB Gamuda Sdn Bhd in due course for implementation purposes.

“The breakdown of the total capital and investment outlay of both Gamuda and MRCB in the PDP company will be according to their proportion of interest in the consortium, which is 50:50,” they said.

Both MRCB and Gamuda said the project would not have any significant effect on their earnings and net assets in 2018. However, it is expected to contribute positively to their future earnings.

The high-speed rail is a strategic project between the governments of Malaysia and Singapore that aims to facilitate a 90-minute travel time between Kuala Lumpur and Singapore.

The service between Kuala Lumpur and Singapore is targeted to begin by Dec 31, 2026.