First segment of Penang LRT contract could cost up to RM8.31bil

The Star

The civil and structural works contract for the first segment of Penang’s first Light Rail Transit (LRT) project which was awarded to the Gamuda Bhd-led SRS Consortium Sdn Bhd (SRS Consortium) could cost up to RM8.31bil, says Transport Minister Anthony Loke.   The cost could also be subject to further revisions.  Read more at https://tinyurl.com/uehymcp7  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00Thank you, thank you, thank you.

00:30I would like to reaffirm this contract to the SRS Consortium through the Single Sourcing Request for Proposal mechanism.

00:38This offer is based on a request from the state government, Purwominang,

00:42which has appointed the SRS Consortium as a project delivery partner for the Penang Transport Master Plan including the LRT Laluan Butiara

00:51through an open tender in August 2015.

00:56That is why I would like to reaffirm that this is not a direct award.

01:01So, what we are doing here is a Single Sourcing Request for Proposal

01:07because the SRS Consortium has gone through an open tender process for the implementation of the Penang Transport Master Plan

01:15at the beginning of 2015.

01:18That is why when the government took over this project from the state government,

01:23we continued with this tender decision, but we have another process,

01:29which is the Single Sourcing Request for Proposal.

01:32That is why we look again at the scope and also the cost and so on.

01:40The decision of this Cabinet is not just a payment commitment,

01:43but it is an assurance from the state government to ensure that Penang gets the benefits

01:49through financial and technical support that is needed for the implementation of this project.

01:54Through this new project structure,

01:57MRT Corp will play the role of project manager, project developer, and owner of LRT Laluan Butiara Penang assets.

02:04This LRT Laluan Butiara project will include three main package tenders.

02:10Today, we have the first tender, or the main contract package,

02:16which includes CMC, the main contract of the civil sector,

02:22which will connect Recremasi Island, south of Penang Island A, or PSA A, to Komtar.

02:29The route of this route, or this route, is 24 km.

02:35The value of the contract is RM8.31 billion,

02:39but it is still subject to the value management and so on.

02:43So this is to facilitate and speed up the process,

02:46we will implement and start this project first

02:50with the value of the contract with ceiling RM8.31 billion,

02:55but it is still subject to the value management.

02:59What will be the deadline for the second package?

03:03As I said, the second package will be opened in the second half of this year.

03:09After that, there will be several processes.

03:12So we expect that it will be awarded by next year, by early next year.

03:17But it will not affect the current work, because this is ongoing.

03:21So the most important package is package A, because this will take at least six years to be completed.

03:27But I assume the second package will not take up to six years,

03:30because that is a shorter alignment, just a few kilometers.

03:34We are talking about 24 km, it will take up to six years to complete this project.

03:40So even though we will award the second package much later,

03:44but it will not disrupt in terms of the overall completion of the project.

03:48Will the second half be as early as July?

03:55The third package is already ongoing.

03:59The tender has been called.

04:01The deadline for submission is April.

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