Tender for HSR project to be called by year-end

MyHSR Corporation head says they are moving from the development phase to the implementation phase.

KUALA LUMPUR: The government will call for a tender by year-end to set up a privately financed asset company (AssetsCo) for the Kuala Lumpur-Singapore High Speed Rail (HSR) project, says MyHSR Corporation CEO Mohd Nur Ismal Mohamed Kamal.

This will be the first tender given out for the HSR project.

AssetsCo will be responsible for the design, building and finances, and maintain rolling stock in addition to designing, building, financing, operating and maintaining rail assets such as track-work, power, signalling and telecommunications.

“We are transitioning from the development phase to the implementation phase where we have hired our civil reference designers and consultant adviser for the system site (railway system) jointly with Singapore.

“We are working hard towards the procurement stage, which will be the start of the construction phase, and for AssetsCo, we are targeting by end of this year,” Nur Ismal told reporters on the sidelines of the “Third HSR Symposium in Malaysia” here today.

Also present were Land Public Transport Commission (SPAD) chairman Syed Hamid Syed Jaafar Albar and Japanese Minister of Land, Infrastructure, Transport and Tourism Keiichi Ishii.

Nur Ismal said MyHSR was currently evaluating the civil construction of the project and would propose the best approach to managing the work scope to the government.

He said the decision on the project delivery partner would be announced in the first quarter of next year, soon after calling the tender for AssetsCo.

Asked about funding for the civil infrastructure, he said the company was in the midst of identifying the best solution, including the option to raise financing via sukuk.

“Let the government decide (on how to finance the HSR project),” he said.

Giving the example of public infrastructure projects in Europe, he said most of the capital expenditure (Capex) would be provided by the government.

“The rail company actually has to take care of the operating cost, whereby they don’t have to pay for the Capex. They will contribute, but are not expected to pay for the full Capex.

“So, when financing is structured that way, its viability is much shorter and easier,” he said.

When asked on the possible fare, Nur Ismal said this had been enshrined in the bilateral agreement signed between Malaysia and Singapore last year in which both countries agreed to adopt the unregulated fare structure.

He said the operator was free to set its own fare but that it would be affordable for the passengers.

“What we want to see is a fare that is affordable to encourage ridership. We want to make sure the optimal ridership is achieved.”

The KL-Singapore HSR will cut travel time between the two cities to just 90 minutes with both countries committed to the project deadline of 2026.

The 350km rail line comprises a total of eight stops: Bandar Malaysia, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat, Iskandar Puteri and Singapore.

In the fourth quarter of this year, Malaysia will issue international tenders for the systems to be chosen for the HSR.

Japan has expressed interest in the project, which is estimated to cost between RM60 billion (US$13.6 billion) and RM65 billion (US$14.7 billion). -FMT