Friday 29 Mar 2024
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KUALA LUMPUR (Aug 24): Protasco Bhd is teaming up with Kelantan state government-linked firm, Kijang Kuari Sdn Bhd, to jointly undertake road maintenance work in the state, over a two-year period for RM25.7 million.

In a filing with Bursa Malaysia, the construction outfit said its subsidiary, HCM Engineering Sdn Bhd, has entered into an agreement with Kijang Kuari to jointly undertake the project on a 60:40 basis, via a new company to be set up.  

Protasco said Kijang Kuari has been awarded a 10-year road maintenance contract by the Kelantan Public Works Department. Kijang Kuari is tasked to supply, deliver and pave asphaltic concrete and crusher run for the state road, as well as to do all incidental works necessary from the quarry to the site.

The contract sum of the maintenance work for the first two years has been fixed at RM25.7 million, Protasco said.  

"The subsequent contract sum shall be reviewed by the Public Works Department every two years, based on the prevailing market price of the material and labour costs in the state of Kelantan," it added.  

Protasco expects the contract to contribute positively to its earnings for financial year ending Dec 31, 2016.

Protasco shares closed unchanged at RM1.55 today, giving the company a market capitalisation of RM527.36 million.

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