KUALA LUMPUR: MRCB-George Kent Sdn Bhd has today entered into a fixed-price contract with Prasarana Malaysia Bhd for the proposed Light Rail Transit Line 3 (LRT3) project in the Klang Valley.
In separate statements to Bursa Malaysia today, Malaysian Resources Corp Bhd (MRCB) and George Kent (M) Bhd said the fixed price contract was for the design, construction, completion, testing and commissioning of the LRT3 from Bandar Utama to Johan Setia.
MRCB-George Kent is a joint venture between MRCB and George Kent.
On October 17 last year, MRCB George Kent said it was told by the government that the LRT3 project would continue, but at a lower cost of RM16.6 billion, almost half of the earlier cost of RM31.45 billion.
The implementation concept of the project was also remodelled from a project delivery partner regime to a fixed price contract regime.
In November 2018, MRCB-George Kent announced to Bursa Malaysia that Prasarana Malaysia Bhd had extended the construction of LRT3's completion date to February 28, 2024 from 2020.
MRCB-George Kent was told to provide a proportionate corporate guarantee and performance bond for the equivalent amount of five per cent of the new contract sum to Prasarana Malaysia.
Besides the MRCB-George Kent joint venture as the main contractor, other listed companies that were involved in the project include Mudajaya Group Bhd, WCT Holdings Bhd, IJM Corp Bhd and Sunway Construction Group Bhd.
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