Rm2 66bil Worth Of Ecrl Projects Given To Bumi Companies Says Mrl

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Malaysia Rail Link said main contractor China Communications Construction Company Ltd was working with the state governments to involve more Bumiputera contractors, with tender invitations expected soon. (Bernama pic)PETALING JAYA: The company building the East Coast Rail Link (ECRL) has reiterated that it has awarded RM2.66 billion in projects to Bumiputera companies as of last November.
It confirmed this value of tenders after a Malay contractors’ group said it doubted the numbers, claiming it was difficult to get the projects due to strict requirements and low-value offers.
In a statement, ECRL special purpose vehicle company Malaysia Rail Link Sdn Bhd (MRL) said it has reached 76% of its RM3.5 billion target for the involvement of Bumiputera companies in the project.
It said of the RM2.66 billion given to Bumiputera companies, RM1.69 billion went to contractors, RM690,000 to suppliers and the remaining RM280,000 to consultants.
The RM1.69 billion covered 172 packages, across Kelantan, Terengganu, Pahang and Selangor, for at-grade junctions, bridge construction and station building.
“MRL takes note of the commercial factors and other limitations in the decision to award ECRL projects. We are ready to help resolve the issues raised.
“We are working to strengthen the involvement of Bumiputeras in the project, despite the agreement only stating that there is only a need for involvement of local companies,” it said in a statement.
MRL said as of Nov 30 last year, contract awards to local companies topped RM13.64 billion, exceeding the initial target of RM10.8 billion.
It said main contractor China Communications Construction Company Ltd was working with the state governments to involve more Bumiputera contractors, with tender invitations expected soon.
MRL said it expected higher growth in Bumiputera contract values, particularly in the construction of the “dual gauge” track from the Port Klang ECRL station (along Jalan Kastam) to the Westports and Northport docks.
Persatuan Kontraktor Melayu Malaysia had reportedly said Bumiputera contractors were not given a chance to take part in the project, disputing reports that RM2.59 billion worth of projects had been given to Bumiputeras as of last month.
The ECRL is a 665km railway line with 20 stations — 10 passenger stations and 10 combined passenger and cargo stations. Seven of the stations will be in Pahang, six in Terengganu, two in Kelantan and five in Selangor.
It will stretch from Kota Bharu to the Gombak integrated transport terminal and then to Port Klang.
The mega project, inaugurated on Aug 9, 2017, at a cost of RM50 billion, is scheduled to start operating in January 2027. The passenger trains will travel at a speed of 160kph and the freight trains at 80kph. - FMT

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