Malaysia

Prasarana denies buying out George Kent’s LRT3 stake

Chairman Datuk Seri Tajuddin Abdul Rahman admits JV company encountered internal issues, but that this is normal

Updated 5 years ago · Published on 29 Mar 2021 5:35PM

Prasarana denies buying out George Kent’s LRT3 stake
As of February 28, 49.22% of the LRT3 project has been completed, and is on track to be completed by February 28, 2024. – The Vibes file pic, March 29, 2021

BANDAR SAUJANA PUTRA – Prasarana Malaysia Bhd has denied speculation that it intends to purchase George Kent Bhd’s stake in a joint venture tasked with constructing the Light Rail Transit 3 (LRT3) project.

The national transport operator’s chairman, Datuk Seri Tajuddin Abdul Rahman, said talk of changes in MRCB-George Kent Sdn Bhd (MRCBGK) are just mere rumours.

But, he did not did not fully dismiss the possibility of changes to the JV contractor, saying it depends on what the future holds.
 
“(Purchasing a stake from George Kent), well those are just rumours. We are looking into having this project end successfully between MRCB-George Kent and ourselves.
 
“We want to make sure that everything runs smoothly and that there are no issues that could affect the completion of the project as scheduled,” he told reporters following a working visit at the LRT3’s Casting Yard here today.
 
However, Tajuddin admitted that the JV company had encountered its internal issues, which are normal under any circumstances.
 
“It’s normal; nothing is ever 100% smooth. There are always going to be hitches everywhere, whether it’s direct or indirect. As the project owner, Prasarana is keen to assure that the JV operates at its best capacity, therefore, we are always alert to what is happening on the ground with regard to LRT3.
 
“Any decision to buy a stake in the JV is not in our agenda.
 
“Anything can happen in the future. As of now, MRCB-George Kent Sdn Bhd remains the contractor for this project,” he said.

Prasarana chairman Datuk Seri Tajuddin Abdul Rahman is not fully dismissing the possibility of changes to the JV contractor, saying it depends on what the future holds. – The Vibes file pic, March 29, 2021
Prasarana chairman Datuk Seri Tajuddin Abdul Rahman is not fully dismissing the possibility of changes to the JV contractor, saying it depends on what the future holds. – The Vibes file pic, March 29, 2021


As of February 28, Tajuddin said 49.22% of the LRT3 project has been completed, and it is on track to be completed by February 28, 2024.
 
MRCB-GK was appointed as the project delivery partner (PDP) for LRT3 on September 4, 2015, with a contract worth RM16.63 billion, which was revised following the change in government in 2018 to RM11.4 billion.
 
The speculation emerged after The Edge reported that Prasarana was apparently seeking a new partner to replace George Kent as the JV contractor for the LRT3 project.
 
According to sources, Prasarana supposedly had issues with the performance of George Kent, which had formed a JV company with Malaysian Resources Corporation Bhd (MRCB), called MRCB-GK.
 
“The change of government in 2018 followed by the revocation of the project delivery partner (PDP) contract with MRCB-GK by the government, the project has been held back.
 
“Among issues holding back the project is the renegotiation of the work packages with subcontractors. While this is not exactly the fault of GK, Prasarana is looking to have greater say in the construction of the project,” one of the sources had been quoted as saying.
 
In the meantime, Tajuddin has called on the government to consider the idea of facilitating temporary detention centres for prisoners being put to work under a special programme with the Prisons Department and the private sector.
 
Tajuddin, who had earlier visited the central labour quarters (CLQ) facility at Johan Setia this morning, said presently, 34 prisoners under the Industry Transitional Home-Sg Buloh prison programme are working at the LRT3 project though MRCB’s “Your Second Chance” programme.
 
“The one major issue is that the workers are made to travel back to the prison once work ends for the day. This incurs a lot of unnecessary costs.
 
“As such, I hope the government, through the Prisons Department, Home Ministry and Human Resources Ministry, will be able to discuss a way where a temporary, yet fully secured facilities, are built to accommodate these convict-workers.
 
“If successful, such arrangements can be put in place between the prisons and other private entities as well.” – The Vibes, March 29, 2021

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