MRCB-Gamuda joint venture accepts letter of appointment for northern section of Singapore-KL high-speed rail

Malaysian infrastructure developer Gamuda Bhd said on May 2, 2018, the consortium had accepted a letter of appointment from MyHSR Corporation Sdn Bhd for the northern section of the Singapore-Kuala Lumpur high-speed rail.
Malaysian infrastructure developer Gamuda Bhd said on May 2, 2018, the consortium had accepted a letter of appointment from MyHSR Corporation Sdn Bhd for the northern section of the Singapore-Kuala Lumpur high-speed rail.PHOTO: THE STAR/ASIA NEWS NETWORK

KUALA LUMPUR (THE STAR/ASIA NEWS NETWORK) - Malaysian infrastructure developer Gamuda and its partner Malaysian Resources Corporation Berhad (MRCB) have been appointed project delivery partner (PDP) for the northern package of the Singapore-Kuala Lumpur high-speed rail (HSR) project.

The firm said on Wednesday (May 2) the consortium had accepted a letter of appointment from MyHSR Corporation Sdn Bhd (MyHSR Corp) for the northern section, from Bandar Malaysia station here to the contract boundary, which is the first standard viaduct pier on the south side of Melaka station.

MyHSR Corp is Malaysia's umbrella group tasked with delivering the HSR project.

The appointment is subject to the joint venture submitting a commitment bond for RM5 million (S$1.7 million) and corporate guarantees by Gamuda and MRCB in favour of MyHSR Corp within 14 days.

Gamuda said the PDP-north package project would be replaced with a new contract to a PDP company known as MRCB Gamuda Sdn Bhd in due course for implementation purposes.

"The breakdown of the total capital and investment outlay of both, Gamuda and MRCB in the PDP company will be according to their respective proportion of interest in the consortium, that is 50:50," it said.

Gamuda said the project will not have any significant effect on its earnings and net assets of for the financial year ending July 31, 2018. However, it is expected to contribute positively to the future earnings of Gamuda Group.

Meanwhile, the southern portion's PDP will be the consortium of Syarikat Pembenaan Yeoh Tiong Lay (YTL) and TH Properties.

The PDPs will be responsible for designing and delivering the civil works for the HSR project at an agreed cost and schedule.

It shall carry out all necessary activities throughout the planning, construction, testing, and commissioning phases, among others.

Recently, the submission of bids for the Singapore-KL HSR assets company (AssetsCo) tender has been extended by six months to Dec 28.

A joint statement by MyHSR Corp and SG HSR Pte Ltd (SG HSR) stated this extension of time will not affect the Dec 31, 2026 date for the HSR Express Service to begin service.

"Following the close of the tender, MyHSR Corp and SG HSR expect to complete their evaluation and announce the tender results by the third quarter of 2019," the statement had said.

The AssetsCo tender was jointly called by MyHSR Corp and SG HSR on Dec 20, 2017.