Bumi companies to be awarded 45% of LRT 3 contracts

najib-lrt

KUALA LUMPUR: The government has announced that 45% of the Light Rail Transit 3 (LRT 3) contracts worth RM9 billion will be awarded to Bumiputera companies through the “carve out and compete” concept.

Prime Minister Najib Razak said the eligible companies had to compete among themselves based on merit.

“It (contracts) is not being randomly awarded and they (Bumiputera companies) must prove their ability and consideration will be given based on merit,” he said after chairing the Bumiputera Economic Council meeting here today.

He also said the overall package had been carefully detailed, encompassing civil works and systems.

It includes bridges and buildings for parking involving nine packages, underground tunnels (one), car depot (two), bus depot (three), works systems, and supply of construction materials among others.

Najib said Bumiputera contractors from grades G2 to G7 under the CIDB had the opportunity to participate in the four key categories.

Of these four, 120 sub-contract packages for the overall civil works worth RM60 million would be awarded to Bumiputera contractors in grades G2-G4.

For contractors from grades G5-G6, he said they could bid for 64 packages estimated at RM240 million in the civil segment, while a number of key packages worth RM2.5 billion that includes the construction of bridges and train stations has been awarded to those in grade G7.

According to the Prime Minister, system works and other construction projects worth RM1.25 billion would also be awarded.

“The ‘carve out and compete’ initiative has to date recorded encouraging success and is proof that it has helped enhance the participation of Bumiputera contractors in mega projects.

“The opportunities in the LRT 3 project is the result of cooperation between Prasarana Malaysia Bhd and MRCB-George Kent Sdn Bhd as the Project Delivery Partner, as well the Bumiputera Agenda Steering Unit (Teraju) and agencies under the Works Ministry,” he said.

Najib cited the number of projects for Bumiputera companies under the Mass Rail Transit (MRT) 1 and 2 having exceeded 45% of about RM22.4 billion as an example of the “carve out and compete” concept’s success.

He said the Pan Borneo Sarawak Highway project had also been allocated RM8 billion or 53% of its overall value to Bumiputera companies.

“I am made to understand that the ‘carve out and compete’ initiative has succeeded in creating an overall value of RM50.8 billion through various mega projects identified.

“With such an initiative, we hope to see more Bumiputera entrepreneurs throughout the country continue to progress and effectively compete,’ he added.