WITH so much unpleasantness been levelled at the scrapping of the Kuala Lumpur-Singapore High Speed Rail project, a project owner has come out in the open to inform that the East Coast Rail Link (ECRL) is progressing “slightly ahead of schedule”.

This is driven mainly by construction works in Section A (Kota Bharu-Dungun) and Section B (Dungun-Mentakab), according to Malaysia Rail Link Sdn Bhd (MRL) chairman Tan Sri Mohd Zuki Ali.

“Currently, the project’s overall completion rate stands at 19.69%,” he pointed out in a media statement. “MRL targets for the overall completion rate to reach 30% by end-2021.”

Similarly, Mohd Zuki expects the ECRL project to bring significant benefits to the local construction and building materials sector.

In this regard, he said MRL and China Communications Construction Company Ltd (CCCC) being the main contractor for engineering, procurement, construction & commissioning (EPCC), have reached an agreement for CCCC to appoint local sub-contractors and suppliers for at least 40% of the civil works of the ECRL portion (excluding tunnelling works).

“The value of the works is estimated to be up to RM10 bil for the implementation of the project from 2017 to 2026,” projected Mohd Zuki.

“CCCC has also agreed to accord special attention on the appointment of small contractors from the Grades G1-G3 categories that will directly benefit them as well as the overall construction industry players in the country.”

To date, a total of 403 local contractors who successfully passed the pre-qualification process have already been registered in the online registration system, of which 212 companies or 52% are Bumiputera contractors.

“Since the implementation of the project from 2017 until Nov 30 last year, a total of RM3.39 bil worth of ECRL work contracts (including permanent and temporary civil works) have  been awarded to almost 2,000 local companies comprising contractors, suppliers and consultants,” noted Mohd Zuki.

“Of the total amount, RM1.69 bil is for works in Pahang, followed by Terengganu (RM1.4 bil) and Kelantan (RM300 mil).”

To further encourage the participation of local contractors in the ECRL project, MRL and CCCC have collaborated with the relevant state governments to provide another platform for local contractors to participate in the ECRL project.

Toward this end, both MRL and CCCC have signed a tripartite memorandum of understanding (MOU) with several state government-owned companies.

“The MOU is aimed at establishing joint ventures between MRLSB, CCCC and also the state government by taking full advantage of the implementation of the ECRL project in the respective states,” added Mohd Zuki – Jan 6, 2021