ECRL: Calls for tenders to local contractors to commence in Q4

PETALING JAYA: Calls for tenders to local contractors for the civil works packages of the East Coast Rail Link (ERCL) will begin in the fourth quarter of 2019, with a total of 331 local contractors shortlisted as potential tenderers, said Malaysia Rail Link Sdn Bhd (MRL).

This follows the call for submission of pre-qualification documents on May 29 and 30 by China Communications Construction Company Ltd (CCCC) to identify potential local subcontractors for the 40% civil works (excluding tunnel works) portion of the project.

“All shortlisted companies are expected to be notified in writing before end-August 2019 by CCCC who is the engineering, procurement, construction and commissioning contractor for the 640km ECRL project,” MRL said in a statement today.

MRL CEO Datuk Seri Darwis Abdul Razak (pix) said the tender packages to be issued for the 40% civil works would involve the 223km stretch from Dungun to Mentakab where the rail alignment has been finalised.

He said tenders for local contractors would continuously be called throughout the construction period of the ECRL and further tenders will be called once both the realignment from Kota Bharu to Dungun and new Southern alignment between Mentakab and Port Klang have been firmed up.

“Completion of the ECRL by end of 2026 also hinges on the effective participation of local contractors in ECRL’s civil works which includes earthworks, foundation works, structural works, soil improvement works and road works,” he added.

The pre-qualification exercise was opened to CIDB registered companies from grades G3 to G7 with a minimum two-star SCORE rating. A total of 1,321 Malaysian construction companies participated, of which 331 were shortlisted.

Of the 331 companies shortlisted, 164 are CIDB G7 companies and 69 are CIDB G4 companies, while 45 are CIDB G3 companies. The remaining companies that made the cut are 33 CIDB G5 and 20 CIDB G6 companies.

Of the 331 companies, 234 are Bumiputera companies. The shortlisted companies were evaluated based on track record, financial capabilities, technical personnel, and plant and equipment.

MRL and CCCC had signed a supplementary agreement on April 12, 2019, paving the way for the revival of the ECRL project. The new deal involves a reduction in construction cost to RM44 billion from RM65.5 billion while local participation of civil works rose to 40% from 30% previously.

Prior to the suspension of the project, local companies comprising suppliers, contractors and consultants were appointed by CCCC for preliminary works. These contracts were suspended following the suspension of the project on July 3, 2018.

“Nevertheless, with the resumption of the ECRL project, CCCC will honour the respective contracts and enable the local companies concerned to resume work,” said MRL.

MRL, a wholly owned subsidiary of the Minister of Finance Incorporated, is the project and asset owner of ECRL. Upon completion in December 2026, the rail network will link Kota Bharu to Putrajaya in about four hours.

source https://www.thesundaily.my/business/ecrl-calls-for-tenders-to-local-contractors-to-commence-in-q4-JD1207946