Xinhua, Kuala Lumpur :
Malaysia’s Mass Rapid Transit Third Line (MRT 3) project, which may cost up to 40 billion ringgit (9.5 billion U.S. dollars), may attract interest from both Chinese and Japanese consortia, said analysts.
Affin Hwang Capital said in a report Wednesday that it believes the Malaysian government is looking to undertake the MRT 3 project on a public-private partnership basis and seeking financing from foreign sources.
Based on an estimated construction cost of 40 billion ringgit for MRT 3, including 36.6 billion ringgit for underground works and 3.4 billion ringgit for above-ground works, the research house said the cost is likely to be prohibitive for local contractors to participate and provide private-sector financing.
“Thus, it is likely to be a close race between the Japanese and Chinese governments to provide funding for the project, which will likely see Japanese and Chinese contractors appointed as main contractors, train and signaling equipment suppliers,” it said.
MRT Corp, the owner of Malaysia’s MRT projects, issued a notice of tender on Monday for the MRT 3.
It was said that tenders are required to provide 30-year financing for the project in addition to having a good track record in undertaking past MRT projects.
Malaysian Prime Minister Najib Razak had earlier signaled intent to complete the construction of MRT3 by 2025, ahead of schedule.
In a separate report Wednesday, Hong Leong Investment Bank Research said the new structure for the MRT 3 is likely to attract interest from both Japanese and Chinese consortia.
Financing of the MRT 1 and MRT 2 was borne by Malaysian government via issuance of bonds.
“With the winning consortium required to fund MRT 3, this would help remove Malaysian government’s funding burden,” the research house said.
Malaysia’s Mass Rapid Transit Third Line (MRT 3) project, which may cost up to 40 billion ringgit (9.5 billion U.S. dollars), may attract interest from both Chinese and Japanese consortia, said analysts.
Affin Hwang Capital said in a report Wednesday that it believes the Malaysian government is looking to undertake the MRT 3 project on a public-private partnership basis and seeking financing from foreign sources.
Based on an estimated construction cost of 40 billion ringgit for MRT 3, including 36.6 billion ringgit for underground works and 3.4 billion ringgit for above-ground works, the research house said the cost is likely to be prohibitive for local contractors to participate and provide private-sector financing.
“Thus, it is likely to be a close race between the Japanese and Chinese governments to provide funding for the project, which will likely see Japanese and Chinese contractors appointed as main contractors, train and signaling equipment suppliers,” it said.
MRT Corp, the owner of Malaysia’s MRT projects, issued a notice of tender on Monday for the MRT 3.
It was said that tenders are required to provide 30-year financing for the project in addition to having a good track record in undertaking past MRT projects.
Malaysian Prime Minister Najib Razak had earlier signaled intent to complete the construction of MRT3 by 2025, ahead of schedule.
In a separate report Wednesday, Hong Leong Investment Bank Research said the new structure for the MRT 3 is likely to attract interest from both Japanese and Chinese consortia.
Financing of the MRT 1 and MRT 2 was borne by Malaysian government via issuance of bonds.
“With the winning consortium required to fund MRT 3, this would help remove Malaysian government’s funding burden,” the research house said.
