SINGAPORE (Aug 15): Sembcorp Industries on Monday announced that its wholly-owned subsidiary, Sembcorp Design and Construction, has entered into a joint venture with Hock Lian Seng Infrastructure for a S$1.107 billion contract from Changi Airport Group.
Hock Lian Seng Infrastructure, a subsidiary of SGX-listed Hock Lian Seng Holdings, has a 60% stake in the special purpose joint venture, with Sembcorp taking up the remaining 40%.
The contract is for proposed development works to effect three-runway operations for Singapore Changi Airport.
The scope involves works to be undertaken around Changi Airport’s Runway 2 and include taxiway pavement works, drainage, mechanical and electrical works, security fencing, perimeter roads, ancillary buildings, as well as other supporting works such as services and road diversions.
“The airport’s three-runway system is expected to be operational in the early 2020s,” Hock Lian Seng says in an SGX filing.
Both Sembcorp and Hock Lian Seng say the project is not expected to have a material impact on the respective groups’ earnings for the financial year ending Dec 31, 2016.
Hock Lian Seng says the group’s construction order book will increase to about S$980 million with its share of the project.
Sembcorp Industries closed flat at S$2.74 on Monday, while Hock Lian Seng closed flat at 34 Singaporean cents.