MRCB George Kent says has advanced RM200m to sustain LRT3 project amid cash flow crisis at Prasarana

By MT Webmaster On Jan 4, 2021

(MMO) – MRCB George Kent announced this evening that it has advanced more than RM200 million to Prasarana Malaysia Berhad (Prasarana) to sustain the Light Rail Transit 3 (LRT3) project.

The company said it was owed RM723.89 million for work done from July to October last year and was still awaiting payment.

“MRCB George Kent Sdn Bhd (MRCBGK) would like to clarify that Prasarana’s payments on October 2 were for construction works done ending June 2020.

“Prasarana’s delayed payments of more than RM700 million were from July 2020 to October 2020, which have been certified for payment by Prasarana’s appointed independent consultant, KL Prima Consult Sdn Bhd. As of October 2020, the certified payment amount was RM723.89 million, while the November 2020 payment is still pending certification,” the company said in a statement today.

“In the meantime, MRCBGK has advanced more than RM200 million to sustain the LRT3 project. Both MRCB and George Kent have given a corporate guarantee to Prasarana and issued a paid-up capital of RM5 million each.”

MRCBGK also pointed out that besides being awarded the contract through open tender, they have also exceeded the minimum 30 per cent Bumiputera quota by having 39.7 per cent Bumiputera contractors in the LRT3 project.

The breakdown of the contractors, the statement read, is local 52 per cent, Bumiputera 40 per cent and foreigners eight per cent.

Earlier today, Prasarana’s non-executive chairman Datuk Seri Tajuddin Abdul Rahman said the agency was cash-strapped and asked the federal government to inject more funds.

The LRT3 project measures 37km in length and spans 20 stations between Johan Setia, Klang and Bandar Utama.

Seventeen contractors working on the LRT3 project have said they are owed money by Prasarana for work done.

Tajuddin said the agency was running out of money and hoped an RM1.5 billion sukuk injection approved by Parliament could come in this month which would help with the payments.