Construction Sector - Fajar in driver’s seat for Sg.Baru LRT station OVERWEIGHT

- The Star  reported today that Fajarbaru Builder Group has been tipped to bag the construction of the Sg.Baru LRT extension by Syarikat Prasarana Negara Bhd (SPNB). 

- The indicative contract value is around RM299mil. We gather that the letter of award was signed just last Friday.

- The Sg.Baru station forms part of the extension works along Ampang line. It would be located next to the Putra Heights station. In addition, the station is also slated to be a depot for the Ampang line.

- Prior to this, Fajarbaru has earned the distinction of having previously undertaken some rail-based projects. These include:- 

(i) A RM63mil sub-contract from the Bina Puri Holdings-Tim Sekata JV for the Ampang line extension; and 

(ii) RM87mil contract from TRC Synergy to construct, complete, test and commission stations 1, 2 and 3 for the Kelana Jaya line extension in March last year.

- The entire Klang Valley LRT extension project is scheduled to be completed by end-2014. The Kelana Jaya LRT extension line will commence from Lemban Subang to Kelana Business Centre. Along the way, it will snake through the townships of Subang, USJ, Alam Megah before ending at the hub in Putra Heights. The extension would consist of 13 new stations and approximately 17km of guideways. 

- On the other hand, the Ampang LRT extension will commence from the present Sri Petaling station - passing through the suburbs of Puchong and Kinrara – before eventually terminating at the hub in Putra Heights as well. The proposed line consists of 13 new stations and ~17.7km of guideways. 

- With the imminent roll-out of the Sg.Baru station works, we estimate ~RM1bil balance of works remaining that has yet to be dished out for the Klang Valley LRT Extension works (both Ampang as well as Kelana Jaya lines)    

- The remaining three contracts – comprising the system works for the Ampang line, the card access system for the Kelana Jaya line into the Ampang line and the development of station 10 and 11 for the Ampang line – would be awarded within the next two months.

- While foreign contractors would likely be front-runners for the Ampang line system, we reckon that WCT could in the running for works along station 10 and 11 of the line.   

Source: AmeSecurites