IJM bags LRT3 underground package contract worth RM1.12b

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KUALA LUMPUR (Mar 13): IJM Corp Bhd has bagged a contract for the underground package of the Light Rail Transit Line 3 (LRT3) worth RM1.12 billion, its first construction contract win for 2018.

IJM said Prasarana Malaysia Bhd awarded the contract to its wholly-owned subsidiary, IJM Construction Sdn Bhd.

"The project involves design, construction and completion of underground tunnel, stations, ancillary buildings and other associated works," it said in a filing with Bursa Malaysia,

LRT3 connects Bandar Utama in Petaling Jaya to Johan Setia in Klang.

IJM chief executive officer and managing director Datuk Soam Heng Choon said the group has a solid reputation of delivering high standards of quality and performance in project management, design and construction.

This is evident by the completed works for both the LRT1 and LRT2 projects in Kuala Lumpur, he said in a statement.

“This project is a continuation of our involvement in major rail transportation networks in the Klang Valley which encompasses infrastructure for LRT, KTM, mass rapid transit (MRT) and monorail projects," he said.   

The project is scheduled to commence this month and is expected to be completed in 31 months. Positive earnings contribution is expected to come in during the period for the financial years 2019 to 2021.

"The total contract value of RM1.12 billion has boosted the group’s outstanding order book to a record, all-time high of RM9.7 billion," IJM said.

The group said the risk factors affecting the project include materials price fluctuation and the availability of skilled manpower.

"However, drawing upon the experiences and know-how of the project team of IJM in undertaking construction projects, these risks could be mitigated," it said.

At market close today, shares of IJM went up 8 sen or 2.99% to RM2.76 for a market capitalisation of RM10 billion.