KUALA LUMPUR – Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) is currently running an open tender process for MRT3 Circle Line’s (MRT3) four main contract packages, with an approach that will transform the construction sector and rejuvenate the economy.
The tender briefing for the project management consultancy (PMC) package was held early last month and the tender briefings for the three civil main contractor packages were completed last week.
In a statement today, MRT Corp said that unlike the MRT2 Putrajaya Line project, which has one main turnkey contractor only at Tier One, the MRT3 project will see five Tier One main contractors appointed to lead its implementation.
“MRT3 construction activities will be further distributed at Tier Two to many mid-sized and small construction companies as work package contractors (WPC).
“Similar to the MRT1 and MRT2 projects, the appointment of MRT3’s WPCs will be done through tender exercises starting from next year. Hence, there will be plenty of opportunities for local construction companies to participate, regardless of size,” the company said.
For now, MRT Corp noted that the focus is on appointment of civil main contractors at Tier One and based on the tender requirements, six to nine companies may eventually be awarded as the civil main contractors in three different joint ventures (JVs) or consortia.
Compared with the MRT1 and MRT2 projects, it said, more companies will be able to participate at Tier One in the MRT3 project.
“Bumiputera participation is mandatory for all civil main contractor packages. Industry players must form joint ventures or consortia with Bumiputera construction companies.
“Additionally, all bidders are required to submit an economic enhancement proposal to catalyse economic activities beyond the construction sector,” it said.
A mandatory element of the tender process is that all partners in JVs/consortia must declare their ultimate beneficial ownership through a statutory declaration, it said.
The concept of beneficial ownership is not limited to ownership through holding of interest in a legal entity but extends beyond ownership structure, in accordance with the Companies Commission of Malaysia’s Guideline For The Reporting Framework For Beneficial Ownership of Legal Persons, it explained.
It covers both from the perspective of ownership and control, it noted.
The minimum required percentages for Effective Bumiputera Ultimate Beneficial Ownership are 31% for CMC301 and CMC302, and 20% for CMC303.
The percentage of Bumiputera work share at Tier Two will be at least of the same value as the Effective Bumiputera Ultimate Beneficial Ownership in the respective packages, it said.
Chief executive officer Datuk Mohd Zarif Hashim said MRT Corp intends to have capable Bumiputera players participating in the MRT3 project, who more importantly must be active members of their JVs/consortia with their own work scopes.
“The winners of the PMC, civil main contractors, and system turnkey contractor packages must work together. All parties’ interests must be aligned to deliver the common objectives. The responsibility to synchronise construction work activities has been tasked to the PMC.
“While there will not be liquidated ascertained damages imposed on the PMC, the PMC will be given key performance indicators and there is a penalty for not meeting them.
“The new approach in project delivery and contracting strategy is a culmination of a decade’s worth of experience of MRT Corp as the asset owner and project developer. MRT Corp is confident in the capability and resilience of Malaysian construction players as well as the supporting ecosystem,” Zarif added. – Bernama, June 13, 2022
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