KUALA LUMPUR (Oct 22): Gamuda Bhd and its joint-venture (JV) partners have been awarded a RM4.3 billion main design and build contract by the Department of Rapid Transit Systems, New Taipei City Government, to deliver the Xizhi Donghu Mass Rapid Transit (MRT) in Taiwan.

"With a significant 75% share within the JV, Gamuda’s share of the contract value is RM3.2 billion," said the group in a statement on Tuesday.

The JV is obligated to undertake, when instructed by the New Taipei City Government, an already determined additional works contract worth RM10.8 billion. Gamuda’s 75% share of the contract value is worth approximately RM8.1 billion.

“These additional works, which would be separate contracts, are expected to be awarded before the end of the Xizhi Donghu MRT contract,” it said.

Combined with the main design and build contract, the overall project value will be RM15.1 billion, it added.

Gamuda shares rose to a record high of RM8.37 on Tuesday morning ahead of the announcement. At the noon market break, the counter stood at RM8.36, still up 16 sen or 1.95%, with a market capitalisation of RM23.58 billion.  

"The latest project is Gamuda’s biggest win since we entered the Taiwanese market two decades ago. This win showcases the group’s consistent ability to secure high-value projects in competitive international markets,” the group said.

“It reflects our strong track record and the trust that Taiwanese authorities have placed in our expertise and delivery capabilities,” it added.

The design-and-build project is estimated to be completed within seven years, Gamuda said.

Works include 5.78km elevated viaducts and trackwork, six stations that are above ground, as well as system works — including rolling stock, power supply, signalling, platform screen doors, the communications system, central monitoring system, auto fare collection system, and depot maintenance equipment.

The project is part of an infrastructure initiative currently underway in New Taipei City to meet the growing demands of the city’s urban populace. Gamuda’s JV partners include Taiwan-based companies MiTAC Information Technology Corp (with a 15% stake) and Dong Pi Co Ltd (10%).

Prior to this, Gamuda had delivered the Kaohsiung MRT Orange Line in 2008 in Taiwan, following the project award in 2002.

Since then, the company has undertaken other projects there, including the RM2.13 billion Taoyuan City Underground Railway project in 2022, and the RM3.45 billion Kaohsiung MRT Metropolitan Yellow Line in 2023.  

However, the current tight labour market poses a risk to the project, it said.