Malaysia Mining, Gamuda win $3.80b project

Malaysia Mining, Gamuda win $3.80b project

Agence-France Presse, Kuala Lumpur

Infrastructure group Gamuda Bhd. said Wednesday it and equal partner Malaysia Mining Corp. (MMC) have won a 14.45 billion ringgit (US$3.80 billion) contract for a double-tracking rail project that forms part of an ambitious trans-Asia link from Singapore to China.

The project was initially promised to the Indian Railway Construction Co. (IRCON) and China Railway under a government-to- government initiative, which includes a barter deal to increase exports of palmoil to India and China.

But Malaysia said bids by the Indian and Chinese contractors, which initially quoted 42 billion ringgit before reducing it to 24 billion, were too high. Malaysia Mining and Gamuda later jointly submitted a bid to complete the job for only 14 billion ringgit.

It is one of the country's largest infrastructure project, involving the laying and electrifying of 636 kilometers of track straddling the length of peninsula Malaysia and forming part of a $30 billion trans-Asia rail link.

In a statement, Gamuda said the contract involved the design and construction of double-tracking and electrification works between Ipoh and Padang Besar bordering Thailand in the north, and Seremban and Johor Bahru neighbouring Singapore down south.

For the northern section, it said IRCON, DRB-HICOM and Emrail would be given the first right of refusal for the sub-contract for the civil works. For the southern portion, China Railway and DRB-HICOM Hikmat Asia will have first right of refusal.

Gamuda said it would commence negotiation with parties involved on the sub-contract price and terms but division of work components for both portions will be determined by the government.

The term of the contract is three years for infrastructure works and an additional year for system works, it said.

Before commencing on the project, Gamuda said the joint venture firm has to furnish the government with a performance bond amounting to 722.40 million ringgit or five percent of the contract sum.