Gamuda Bhd has received a notice to proceed (NTP) from MRT Corp on the first civil works package of the Penang LRT line project, says a source close to the matter.
The source said the NTP was issued yesterday, paving the way for SRS Consortium, in which Gamuda owns a 60% stake, to move into full-scale construction.
The project covers a 24km stretch from Komtar in George Town to Island A under the Penang South Island project, with 19 stations and supporting works.
The notice marks the official start of work on the long-delayed Penang LRT, which has faced years of hurdles.
With this, the clock begins on the six-year deadline for completion.
The RM8.31 billion contract had been awarded in January, but work was delayed until the MRT Corp gave the go-ahead in the form of the NTP.
The federal government had taken over the LRT project through MRT Corp from the Penang government in March last year.
SRS Consortium includes Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd, each holding a 20% stake. MRT Corp, a unit of the finance ministry, is the asset owner and project manager.
The Mutiara Line will span 29.5km overall with 21 stations, linking a reclaimed island near the airport to Komtar, and onward via a cross-channel bridge to Butterworth. MRT Corp has pegged the full cost at RM13 billion, with completion targeted by 2031.
The cross-strait segment from Macallum on the island to Penang Sentral in Seberang Perai will begin construction in 2026, and is expected to finish in tandem with the rest of the line.
The line is projected to serve up to 60,000 daily riders in its early years, with long-term ridership reaching 168,000.
Transport minister Loke Siew Fook had said earlier that splitting the project into three packages – civil works on the island, civil works on the mainland, and a turnkey systems package – would help streamline tendering and reduce delays.
The second package – the 5.8km cross-strait segment – has been put out for tender. MRT Corp had previously said this section would begin construction in the second quarter of 2026.
The third package for systems work was advertised in April, and the last date for the submission of bids is Aug 11.
