PETALING JAYA: One of the most promising projects of the construction sector is the RM31bil MRT 3 with tender submissions expected in August and the awards dtermined by the year’s end.

       Partnerships and joint ventures (JV) with bumiputra constructor/s is a requirement for at least a 20-31% stake for all three packages (CMC301, 302, 303).

       The largest package with the longest tunneling scope (CMC 303) has an option of the inclusion of a maximum of 49% equity stake by a foreign contractor, in addition to the minimum 20% stake by a bumiputra contractor, said CGS-CIMB.

       The main difference between the MRT 3’s bidding structure this time around versus MRT 2 (Putrajaya Line, 80% completed) is the absence of a project delivery partner (PDP) and creation of three main turnkey contractors/JV to lead the implementation of each of the three tier one civil works packages.

       The other is that all tender submissions for the tier one civil works are required to include a private sector funding scheme/proposal for the first two years of construction (2023-24).

       The MRT 3 funding plans, the government-funded deferred payment scheme would commence from year-three through to project completion in year-eight.

       The Finance Ministry said it would raise as much as RM50bil in bonds for this purpose.

       Several companies are vying for the MRT3 jobs and CGS-CIMB believes that Gamuda Bhd and IJM Corp Bhd are potential front-runners for the tier one packages.

       Gamuda’s rail and tunneling credentials, based on MRT 1 and 2, are strong compared to other bidders for CMC303, which is estimated to cost RM13bil.

       For IJM Corp, it could be a viable candidate for package CMC302, estimated to cost RM14.7bil, given its extensive rail experience in aboveground scopes.

       HSS Engineers Bhd has secured a RM11.3mil preliminary consultancy service for MRT 3 and could clinch higher value Project Management Consultancy (PMC) packages.

       It secured RM159mil contracts from MRT 2 (Putrajaya Line) and RM290mil before MRT 3 was canceled in 2018.

       The research house maintains its “neutral’’ stand on the sector with preference for Gamuda, IJM Corp and HSS on the MRT 3 theme.