- According to a report by Bernama, the MRT Corp one-stop procurement committee has awarded two viaduct packages for the Sg.Buloh-Kajang MRT project, as expected. Both projects are estimated to be worth a combined RM1.6bil.
- Package v2 – involving the stretch from the proposed Kota Damansara station to the proposed Dataran Sunway station – has been awarded to Gadang. The contact is worth RM863mil, and had attracted bids from all 12 pre-qualified tenderers. As for Package v3 (Dataran Sunway-Section 17), Mudajaya won the bidding among 11 contractors for the job worth RM816mil.
- With these latest awards, seven out of the eight viaduct packages have been awarded. The remaining viaduct package is under the bumi package – Package v8: Taman Mesra-Kajang – is currently under the tendering stage.
- With the award of Packages v2 & v3, we estimate that the total value of contracts awarded under the SBK MRT line would have reached close to RM16bil or roughly 77% of the initial cost estimate of RM20bil. We estimate that another 21 tenders are at the tendering stage while the remaining 31 packages have yet to be called.
- For the balance of the major packages remaining, our channel checks indicate that package v8 and half of the eight elevated station packages would be awarded by August. This would subsequently be followed by the remaining four station packages in October. Another major job still up for grabs is the Kajang Depot under the open category.
- Importantly, both lines would be implemented together – where major city centre works which are largely underground would be completed in one go rather than done on a staggered basis. This portion of the project would likely take 10km-20km each.
- While competition for the remaining packages remains intense, we gather that Naim Holdings would stand a chance in either the Kajang Depot or package v8 under the bumi category. On the other hand, WCT is in for a shot for the station works under the open category – having submitted two bids worth a combined RM300mil-RM400mil.
- Further out, we understand that ~95% of the SBK MRT line contracts would be awarded by year-end. As for MRT 2 (circle line) and 3 (radial: North-South), feasibility studies are nearing completion. Based on MRT Corp’s timeline, contracts could be dished out by end-2013, and targeted for completion within six years – i.e. 2020. But any firm decision on both lines would only be known after the 13th General Election.
- Likewise, we also expect investor expectations to slowly gravitate towards the suppliers of building materials, particularly with the multi-year supply prospects for cement and steel. We would advocate Ann Joo Resources (steel), Lion Industries (steel), Lafarge Malayan Cement (cement), IJM Corp (via ICP: concrete-based products) and KimLun Corp (tunnel lining, segmental box girdles).