This article first appeared in The Edge Malaysia Weekly, on February 29 - March 6, 2016.

IJM Corp Bhd, Sunway Construction Group Bhd and Gadang Holdings Bhd are among the front runners for major work packages in Mass Rapid Transit 2 (MRT2). The packages have a combined value of RM3 billion and are expected to be awarded in early to mid-March, according to sources.

The Edge understands that the three home-grown construction firms are likely to be the “main players” in MRT2, while Mudajaya Group Bhd and Ahmad Zaki Resources Bhd (AZRB) will also get a slice of the pie.

It is learnt that Mass Rapid Transit Corp Sdn Bhd (MRT Corp) is expected to award at least two key packages, worth about RM1.5 billion each, in MRT2 between early and mid-March.

A quick check on MRT Corp’s website shows that to date, only four advance work packages for MRT2 have been awarded. They were awarded between last November and early February. 

MRT Corp, which is wholly-owned by Minister of Finance Inc, is the developer and asset owner of the MRT projects. The construction works for MRT2, also known as Sungai Buloh-Serdang-Putrajaya (SSP Line), will begin in the second quarter.

Linking Sungai Buloh to Putrajaya with an estimated end-to-end journey of 84 minutes, MRT2 will also include stops and stations at Sri Damansara, Kepong, Jalan Tun Razak, KLCC, Tun Razak Exchange, Kuchai Lama, Seri Kembangan and Cyberjaya.

The proposed alignment of MRT2 is 52.2km, of which 13.5km will be underground. A total of 36 stations, 11 of them underground, will be built.

MRT2 is expected to have a ridership of 529,000 passengers daily when it commences full service in the second quarter of 2022. Phase 1 is slated to begin operations in the second quarter of 2021.

According to the sources, the contractors who were involved in MRT1, dubbed the Sungai Buloh-Kajang (SBK Line), should have some advantages in securing contracts for MRT 2, as they have a proven track record.

“During Datuk Azhar (Abdul Hamid)’s (former CEO of MRT Corp) time, they had a card system to show the top performer among all the contractors every month, what they call the monthly champion. The performances of IJM, SunCon and especially 

Gadang, have been consistently good,” says a source.

Interestingly, a source says most contractors for MRT1 were “suffering” from cost escalation and disputed variation orders (DVO). Hence, there will possibly be some sort of “compensation for their hardship”, in other words, better chance of winning contracts for MRT2.

When a DVO is issued, the source says, project delivery partner MMC-Gamuda KVMRT (PDP) Sdn Bhd will usually stick to the contract, causing delays in variation claims for these contractors.

“That’s why you need the stronger boys to deliver. Imagine if the key packages in MRT1 had been given to the smaller boys, the whole MRT project would be delayed,” says a source.

To recap, construction of the 51km MRT1 began in July 2011. Phase 1, which runs from Sungai Buloh to Semantan, will be operational by the end of this year, and Phase 2, which runs from Semantan to Kajang, will be operational by July next year, allowing the trains to run the entire alignment.

It is worth noting that IJM Construction Sdn Bhd, the construction arm of IJM, was awarded two contracts for MRT1 in 2012. One was the construction of a viaduct guideway from Maluri portal to Plaza Phoenix station for RM974 million, and the other, elevated stations at Taman Bukit Ria, Taman Bukit Mewah, Leisure Mall and Plaza Phoenix for RM228.9 million.

AZRB is constructing a viaduct guideway from Plaza Phoenix station to Bandar Tun Hussein Onn station for RM764 million, as well as elevated stations at Taman Suntex, Taman Cuepacs and Bandar Tun Hussein Onn for RM174.6 million.

Gadang Engineering (M) Sdn Bhd, the construction unit of Gadang, undertook earthworks at the Sungai Buloh depot for RM23.9 million and is constructing a viaduct guideway from Kota Damansara to Dataran Sunway for RM863 million.

Meanwhile, Mudajaya landed a contract to construct a viaduct guideway from Dataran Sunway to Section 17 for RM816 million, and SunCon is continuing the work from Section 17 to Semantan portal for RM1.17 billion.

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