|
KUALA LUMPUR- The construction market is expected to be given a sweetener every quarter before the main course in the first quarter of 2011 should the news flow be accurate. News from Bernama, July 14, 2010.
In a note, ECM Libra Investment Research said mega projects in the 9th Malaysia Plan (9MP) appeared to be chugging back into motion.
It said phase one of the light rail transit (LRT) extension project has been called for tender in June while the market was expecting the low-cost carrier terminal (LCCT) contract worth about RM1 billion.
"We expect the LCCT contract to be awarded in third quarter of 2010 with Bina Puri as the likely winner for the main terminal and satellite building works," it said.
ECM Libra said with the closing of the tender in August 2010, the LRT project should be awarded by the fourth quarter of this year assuming there were no further delays.
It said the main catalyst for the sector was the proposed RM36 billion mass rapid transport project under the 10MP.
"The proponents of the project, Gamuda-MMC, have indicated their timeline for the commencement of the project to be in the first quarter 2011," it said.
ECM Libra said the possibility of the LRT project taking off has been buoyed by the news that the government has appointed independent consultants to study the project's feasibility.
It said other than these projects, the outlook under 10MP was less rosy as the government has trimmed development expenditure for physical infrastructure works.
"Implementation timeline is also vague at this point in time until detailed implementation programmes for 2011 and 2012 are revealed in Aug 2010," it said.
ECM Libra has maintained its neutral call until more solid developments were seen within the sector.
|
