By Stella Goh
The infrastructure projects such as Mass Rapid Transit Line 3 (MRT3) and the KL-Singapore High Speed Rail (HSR) will appears imminent and this revival could provide a ray of light amid the gloomy outlook for construction sector. According to the TA Research Analyst, the midterm recovery plan will be most likely tabled in Parliament in October prior to the tabling of Budget 2021 in early of November, are more appropriate platforms to revive some mega projects.
They view the MRT3 as “low-hanging fruit” project, which could be implemented foreseeable future. The MRT2 project is expected to be complete by late-2022, in order to ensure the continuity of MRT projects and to minimize the demobilization and mobilization costs associated with construction machinery, especially tunneling experts, MRT3 has to be rolled-out in near future.
In order to kick-off the construction work, the Project Delivery Plan (PDP) would require about 6 months to 12 months from the appointment of PDP. The MMC-Gamuda joint venture was initially appointed as project PDP in October 2014 to implement the MRT2, before the overall completion of MRT1 in July 2017.
While according to the Alliance DBS, the project was on the verge of being awarded at a contract value of RM45billion. Subsequently, the value was lowered to around RM20-25bil with the tunneling portion estimated to be worth RM12 billion, or RM6billion each for MMC and Gamuda.
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