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.