KUALA LUMPUR: SME Bank has allocated RM1 billion in financing specially for local contractors appointed for the civil works packages of the East Coast Rail Link project.
“The financing is in the form of term and revolving financing and is capped at RM50 million for each applicant excluding Bank guarantees,“ said Entrepreneur Development Ministry secretary-general Datuk Wan Suraya Wan Mohd Radzi in her opening remarks made on behalf of the minister Datuk Seri Mohd Redzuan Yusof.
“I am confident that with such financing support, local contractors can be at ease and concentrate on completing the projects assigned on time without undue anxiety or worry,“ she added.
The initiative was agreed via the inking of a memorandum of understanding between SME Bank, Malaysia Rail Sdn Bhd (MRL), and China Communications Construction (ECRL) Sdn Bhd (CCC-ECRL).
MRL CEO Datuk Seri Haji Darwis Abdul Razak said the tripartite MoU would accelareate the commencement of civil works under the 40% local participation portion of the 640-km rail infrastructure from Kota Baru to Port Klang.
“The sooner local construction companies come stream with the civil works on the ECRL, the faster the project would contribute to the growth of Malaysia’s construction and building materials sectors as well as the railway industry,“ he said.
As ECRL civil works packages continue to be awarded over the next one to two years, the collaboration would encourage local construction companies to play an active role in the project and ensure it is on track for completion by December 2026.
In August this year, MRL said 70% of the 331 shortlisted companies as subcontractors in a pre-qualification exercise for work on the ECRL project are Bumiputera companies.
CCCC had received 1,321 submissions during the pre-qualification exercise to identify the potential subcontractors, held on May 29 and 30, for the 40% civil works portion of the ECRL.
source https://www.thesundaily.my/business/sme-bank-allocates-rm1b-for-local-ecrl-contractors-FN1618124
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