SunCon, WCT, Gabungan AQRS bag LRT3 contracts

This article first appeared in The Edge Financial Daily, on October 6, 2017.
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KUALA LUMPUR: Three public-listed companies, namely Sunway Construction Group Bhd (SunCon), Gabungan AQRS Bhd and WCT Holdings Bhd bagged contracts with a combined value of RM3.99 billion from Prasarana Malaysia Bhd for construction works related to the Light Rail Transit 3 (LRT 3) project.

SunCon announced to Bursa Malaysia yesterday that it had been awarded a RM2.18 billion contract, boosting its outstanding order book to RM6.5 billion — the highest ever since its inception.

Its managing director Chung Soo Kiong noted in a press statement that the enlarged outstanding order book will give high visibility for the group’s future earnings.

The contract is SunCon’s fourth elevated rail project, its largest single project in 36 years. The scope of work includes 9.2km of viaduct works, construction of six stations, and the design and building of an iconic cable-stayed bridge over the Klang River.

Additionally, the group will construct two park and rides at Pasar Besar Klang and Sri Andalas, as well as a Centralised Labour Quarter at Johan Setia, said SunCon.

Meanwhile, Gabungan AQRS announced that its wholly-owned unit Gabungan Strategik Sdn Bhd received a letter of acceptance from Prasarana to undertake the jobs under Package GS04, which brings its outstanding order book to RM2.6 billion.

The project is for a period of 38 months and is expected to contribute positively to Gabungan AQRS’ earnings from current financial year ending Dec 31, 2017 (FY17).

Over at WCT, the company, which is controlled by property tycoon Tan Sri Desmond Lim, said in a filing with Bursa Malaysia, that its wholly-owned subsidiary, WCT Bhd, had on Wednesday received the letter of acceptance issued by Prasarana to undertake works related to LRT 3 for a contract sum of RM640 million.

WCT is given package GS02, involving, among others, the construction of a guideway from Merchant Square to Suria Damansara, stretching 2.9km long with two stations and adjoining the guideway under Package GS03 which continues from Suria Damansara to Temasya Glenmarie, stretching 2.8km long.

This is the third contract that the subsidiary has secured from Prasarana for works related to the LRT 3 project.

WCT had earlier secured two packages under LRT3, namely Package TD1 — construction and completion of Johan Setia Depot (Phase 1) and associated works for a contract sum of RM185.9 million in April, as well as Package GS03 — construction and completion of guideway, stations, park and ride, ancillary buildings and other associated works for a contract sum of RM840 million in August.