KUALA LUMPUR (Jan 13): Gamuda Bhd (KL:GAMUDA) said its consortium has been appointed as the main contractor to deliver the first civil works package worth over RM8 billion for the Penang Light Rail Transit (LRT) project.
SRS Consortium Sdn Bhd, a joint venture in which Gamuda owns a 60% stake, will build the Mutiara Line stretching 24km from Komtar in George Town to Island A of the Penang South Reclamation project. The contract involves 19 stations and other related facilities.
"This is intended to simplify and expedite the implementation and initial execution of the project,” said Transport Minister Anthony Loke Siew Fook at a press conference after a signing ceremony for the contract on Monday. The contract has a ceiling of RM8.31 billion, he noted.
The long overdue project is expected to alleviate severe traffic congestion in Penang Island. Once the notice to proceed is issued, Gamuda will have six years to complete the contract, according to a statement from the company.
Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd each own 20% of SRS Consortium. Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) is the project developer and asset owner of the Mutiara Line.
The tender for the second package of the project, which runs from the Macallum Station in George Town to the Penang Sentral Station in Seberang Perai, is expected to be called in July, and the award will be announced by early next year, the minister said.
The tender process for the third package of the project is ongoing, with the final pitch deadline on April 14, 2025. Overall, the Mutiara Line will feature 21 stations covering a total distance of 29.5km.
However, the land acquisition cost has not been finalised yet, Loke said.
The federal government has previously budgeted a contract sum of RM10 billion to RM13 billion for the LRT project, he noted.
The third package is the systems turnkey contract, which encompasses the design, procurement, construction, testing, commissioning, and maintenance of railway systems.
Meanwhile, Loke did not discount the possibility of SRS Consortium bidding for the remaining two packages.
“The same consortium was awarded the project based on the tender previously secured by the state government. Issuing a new tender could have led to legal issues with the consortium, as they have already been awarded the project.
However, for the second and third packages, these are not obligations of the federal government. Therefore, a new tender process will be required for these packages," Loke said.
In March 2024, the federal government officially took over the Penang LRT Mutiara Line project from the state government, following the Cabinet's approval of the development proposal for the project.
The government decided to appoint MRT Corp, a company wholly owned by the Minister of Finance Incorporated, as the developer and asset owner, with the project to be implemented via open tender.
MRT Corp chief executive officer Datuk Mohd Zarif Hashim said the various main package contractors will be managed directly by the state-owned firm.
“The direct project management approach allows us to enhance coordination, interface and integration works of multiple packages including TOD (transport-oriented development),” said Mohd Zarif.
Loke reaffirmed the federal government’s Bumiputera participation policy in the project. About 40% of subcontracts will be distributed to Bumiputera companies.
In addition, priority will also be accorded to Penang-based companies in subcontracting works to create significant employment opportunities and grow the local supply chain in Penang, said MRT Corp.
In a separate statement, Gamuda said this award reflects the confidence in its technical capabilities and track record in delivering complex infrastructure projects, both locally and overseas.
“The Mutiara Line represents a transformative development for Penang's public transportation landscape, and we are committed to delivering within the budget and on time in its execution.
“The project is scheduled for completion within six years from the notice to proceed, enhancing connectivity and supporting Penang’s comprehensive transportation master plan, designed to address growing mobility needs and economic growth,” the conglomerate said.