KUALA LUMPUR (April 13): Muhibbah Engineering (M) Bhd's joint venture (JV) with France's Vinci Group has awarded a US$23 million (RM88 million) contract to its construction unit to build a new domestic terminal at the Phnom Penh Airport in Cambodia, which will cater for the future growth of the domestic traffic.

The construction unit is 70%-owned by Vinci Construction Grands Projets, and 30%-owned by Muhibbah.

In a filing with Bursa Malaysia today, Muhibbah said construction work on the new domestic terminal will commence immediately and is expected to be completed by the fourth quarter of 2017.

"The contract is expected to contribute positively to the earnings and net assets of Muhibbah Group for the current and future financial years," it added.

In 2013, the JV, Société Concessionnaire de l'Aéroport (SCA), had bagged the concession rights to build and operate three international airports in Cambodia. They are the Phnom Penh, Siam Reap, and Sihanoukville international airports.

SCA is 70%-controlled by Vinci Group and 30% by Muhibbah via its subsidiary Muhibbah Masteron (Cambodia) Co Ltd.

"In view of the rapid growth of airports passengers arrivals over the years and expected increasing trend of airports business, SCA has embarked on this capital expansion programme to further extend and upgrade the international airports of Cambodia," said Muhibbah.

"The expansion was completed and the two international airports were officially inaugurated on March 16," it added.

Muhibbah shares closed 2 sen or 0.86% lower at RM2.32 today, with 160,800 shares traded, for a market capitalisation of RM1.09 billion.