Date : 05 November 2018

OTHERS PROPOSED DESIGN, CONSTRUCTION, COMPLETION, TESTING AND COMMISSIONING OF LIGHT RAIL TRANSIT LINE 3 (LRT 3) FROM BANDAR UTAMA TO JOHAN SETIA - Letter of Appointment for the Fixed Price Contract for the Works

MALAYSIAN RESOURCES CORPORATION BERHAD

Type Announcement
Subject OTHERS
Description
PROPOSED DESIGN, CONSTRUCTION, COMPLETION, TESTING AND COMMISSIONING OF LIGHT RAIL TRANSIT LINE 3 (LRT 3) FROM BANDAR UTAMA TO JOHAN SETIA 
-	Letter of Appointment for the Fixed Price Contract for the Works

Our announcements on 4 September 2015, 23 October 2015 and 17 October 2018 refer.

 

Malaysian Resources Corporation Berhad (“MRCB” or the “Company”) is pleased to announce that MRCB George Kent Sdn Bhd (“MRCB-GK), has today received a Letter of Appointment dated 2 November 2018 (“LOA”) from Prasarana Malaysia Berhad (“Prasarana”) for the award of the contract for the Proposed Design, Construction, Completion, Testing and Commissioning of Light Rail Transit Line 3 (LRT 3) from Bandar Utama to Johan Setia (“the Project”).

 

The Contract Sum of the Project is fixed at RM11.856 billion and includes a contingency/provisional sum of RM400 million, which, if not utilised, will reduce the Contract Sum.

 

The salient terms of the LOA, amongst others include the following:

  1. The Date of Completion under Contract shall be 28 February 2024, unless extended in accordance with the Contract;

  2. MRCB-GK shall provide a Performance Bond for the equivalent amount of 5% of the Contract Sum, within 30 days from the date of the LOA;

  3. MRCB and George Kent are to provide a proportionate Corporate Guarantee to Prasarana; and

 

Negotiations on the fixed price contract shall continue so that the contract will be executed no later than 12 December 2018

 

The Project will not have any significant effect on the earnings and net assets of the MRCB Group for the financial year ending 31 December 2018. However, it is expected to contribute positively to the future earnings of MRCB.

 

The Project is subject to normal business risks such as an increase in costs due to any escalation of material costs and contractual terms including default provisions. As such, the Management will put in place control measures and operational procedures to reduce the impact or likelihood of such events.

 

None of the Directors and/or major shareholders of the Company and/or persons connected with them, has any interest, direct or indirect, in the Project.

 

 

 

This announcement is dated 5 November 2018.

 






Announcement Info

Company Name MALAYSIAN RESOURCES CORPORATION BERHAD
Stock Name MRCB
Date Announced 05 Nov 2018
Category General Announcement for PLC
Reference Number GA1-05112018-00028