Global tender launched for construction of Penang Light Rail Transit Mutiara Line

Kuala Lumpur, Malaysia (Metro Rail Today): Mass Rapid Transit Corp Sdn Bhd (MRT Corp) has officially launched the tender process for the highly anticipated Penang Light Rail Transit (LRT) Mutiara Line project, with a significant federal allocation of RM10 billion to fund the ambitious infrastructure development. The tender process, which was announced on Monday, invites both local and international companies to participate in securing the role of a turnkey contractor for the engineering, procurement, construction, commissioning (EPCC), and maintenance of the Penang LRT system.

MRT Corp, in its tender notice, emphasized its objective to appoint qualified turnkey contractors capable of managing the entire scope of the project, ensuring its seamless execution from start to finish. This includes not only the construction and commissioning of the system but also the ongoing maintenance and integration of various subsystems to guarantee a fully operational LRT network.

Details of the Tender Process

The tender process is open to both local and foreign firms, and MRT Corp has outlined specific guidelines for joint ventures (JVs) and consortiums that wish to participate. Foreign participation in any JV or consortium is capped at a 49% stake, ensuring significant involvement from Malaysian contractors. Furthermore, each JV or consortium may consist of no more than three companies, and each tenderer is restricted to submitting only one tender proposal.

One of the added advantages for tenderers is the inclusion of an original equipment manufacturer (OEM) as part of the JV or consortium. OEM participation is seen as a significant benefit, potentially providing enhanced technical expertise and operational efficiency to the project.

Interested parties are required to attend a mandatory tender briefing on December 12, 2024, at the Gurney Bay Hotel in George Town, Penang. The official deadline for the submission of tender documents is set for 12pm on April 4, 2025, providing ample time for applicants to prepare their proposals.

Eligibility and Technical Requirements

To ensure that only the most qualified firms are chosen, MRT Corp has set clear eligibility criteria for potential contractors. Each JV or consortium bidding for the project must meet several technical requirements. Specifically, at least one partner must have a proven track record of delivering successful railway projects as a system contractor or subcontractor within the past decade. Additionally, the tenderer must demonstrate experience in managing and coordinating multiple railway subsystems, ensuring that each component integrates seamlessly into a fully operational system.

Furthermore, MRT Corp has stipulated that the consortium must have been awarded railway system projects with a cumulative contract value of at least RM500 million over the past 10 years. This requirement is designed to ensure that only experienced firms with the necessary capabilities and financial strength are eligible to bid on the high-profile Penang LRT project.

Financial Requirements for Tenderers

In terms of financial eligibility, MRT Corp has set specific criteria for potential bidders. The tendering company or consortium must have a minimum shareholder fund of RM100 million, based on the most recent financial year. In addition, the bidder must demonstrate positive cumulative earnings before interest, taxes, depreciation, and amortization (EBITDA) over the last five years. Furthermore, the bidder must have access to a minimum of RM100 million in unutilized credit facilities from financial institutions, ensuring they are financially capable of handling such a large-scale infrastructure project.

Penang LRT Project Overview

The Penang LRT project spans 29 kilometers and is expected to significantly improve public transport connectivity across Penang Island and the mainland. The medium-capacity train system will feature up to 20 stations, running from the Silicon Island area in the southeast of Penang Island to Komtar in George Town, and further extending from George Town to Penang Sentral in Butterworth.

In March 2024, the federal government awarded the development of Segment 1 of the LRT line—connecting Silicon Island to Komtar—to SRS Consortium Sdn Bhd. The SRS Consortium, in which Gamuda Bhd holds a 60% stake, was initially appointed as the project delivery partner by the Penang government back in August 2015 as part of the Penang Transport Master Plan (PTMP). This marks an important step in realizing the broader vision for Penang’s urban transportation infrastructure.

A Key Step Towards Penang's Future

The launch of this tender process is a critical milestone in the Penang LRT project, which aims to address the growing need for efficient public transport in one of Malaysia's most dynamic regions. With an allocated budget of RM10 billion, the project is expected to revolutionize the local transportation landscape, offering a sustainable and reliable alternative to road traffic.

The successful implementation of the Penang LRT Mutiara Line is poised to provide substantial benefits, including reduced traffic congestion, improved air quality, and enhanced connectivity across Penang. As the tender process moves forward, MRT Corp continues to encourage the participation of experienced and capable firms, ensuring that the project’s delivery meets the highest standards of excellence.

For further updates, potential contractors, and interested stakeholders are advised to follow the official channels for the latest information regarding the Penang LRT project.