Gamuda expects nod soon for RM36bil joint MRT project

The Cabinet has yet to approve the Gamuda Bhd-MMC Corp Bhd joint development proposal for the mass rapid transit (MRT) system, said Gamuda group managing director Datuk Lin Yun Ling.

However, he expects the proposal, which was submitted early this year, to be approved soon.

Possibly, the Gamuda-MMC joint venture will be the project delivery partner of the Government.

Via this, the Government can have the cake and eat it while on one hand, they can transfer the project’s delivery performance to the partner and at the same time, they can have the entire project packaged out via competitive tenders, Lin said after Gamuda AGM yesterday.

The savings from competitive tenders will go to the Government and if we are allowed to bid for the underground part, we will be more than happy.

Lin believed that the MRT project, estimated to be worth RM36bil, would start next July.

He said even after Cabinet approval, the project would have to go through several processes before construction work could begin.

The Government will have to decide on the network scheme, allignment of railway lines and location of stations through Public Land Transport Commission and Syarikat Prasarana Negara Bhd.

The Government will also have to get the feedback from the public and other stakeholders before it starts the project, he said.

On the extension of Ampang and Kelana Jaya LRT lines, Lin said Gamuda may bid for it if the MRT project did not go ahead.

Lin said Gamuda was also eyeing the MRT or metro system project worth US$45bil in Qatar.

Qatar will host 2022 World Cup and one the key infrastructures to be built could be the underground metro system in Doha.

We already have a good track record in the Middle East and I think we are well-positioned to be part of it, he said.

Lin said Gamuda expected sales from its property development to hit RM5bil over the next two years.

He said the group’s property arm, Gamuda Land, was embarking on a high-growth phase with a priority to sell down its land bank innovatively.

Of the projected RM5bil sales, RM2bil is expected to come from our local projects and the remainder from our activities in Vietnam.

This year, we are achieving a record-high of RM1bil in property sales and currently, our unbilled sales stand at RM800mil, he said.

On the recent merger proposals by some property players, Lin said it was not really a concern for Gamuda as each group would have their own strategies. 

Source: http://biz.thestar.com.my/news/story.asp?file=/2010/12/10/business/7593627&sec=business