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  5. Malaysia: Revival of the Putrajaya Monorail Project

Malaysia: Revival of the Putrajaya Monorail Project

05 Oct 2020    2 minute read

In brief

In April 2020, Putrajaya Corporation ("PJC") confirmed that the Malaysian government will continue with the development of the Putrajaya monorail project ("Project") which was previously suspended in mid-2004.

On 1 October 2020 the Federal Territories Ministry ("KWP") announced that it intends to issue a request for proposals ("RFP") for the Project by the end of 2020 to enable the Project to be continued with the co-operation and participation from the private sector.

Contents

  1. Background of the Project
  2. RFP
  3. Considerations for potential bidders

Background of the Project

The Project was introduced in the early 2000s and construction of basic infrastructure, including an incomplete tunnel and unconnected bridge, had commenced before the suspension.

Based on the original development plan, the proposed Project was to have two lines, consisting of one 12km-long line with 17 stations and one 6km-long line with 6 stations. It is possible the original development plan would need to be modified or replaced in its entirety to ensure the Project is developed in a more cost-efficient manner.

RFP

The KWP indicated that the purpose of the RFP is to obtain cost proposals and suggestions from the private sector. The KWP will then study the possibility of the Project being continued via a public private partnership model and decide on the type of technology to be used for the construction and execution of the Project.

The KWP further indicated that the RFP will be flexible and the KWP is open to consider viable proposals from the private sector. The construction costs and assets procurement for the Project will depend heavily on the type of technologies used for the system.

Considerations for potential bidders

According to PJC, there are currently about 90,000 people living in Putrajaya and ridership is estimated to reach about 120,000 in a day. There is currently no indication on the contents of the RFP but given that this would be a private-partnership project (PPP), we can expect terms consistent with other PPPs in Malaysia.

Click here to access the Chinese version.

LOGO Malaysia_Wong & Partners_KualaLumpur 

This client alert was issued by Wong & Partners, a member firm of Baker McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner or equivalent in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

Contact Information
Mark Lim
Partner
Kuala Lumpur
mark.lim@wongpartners.com
Faez Abdul Razak
Senior Associate
Kuala Lumpur
faez.abdulrazak@wongpartners.com

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