KUALA LUMPUR (April 20): Emas Kiara Industries Bhd (EKIB)'s wholly-owned subsidiary Kiaratex Export Pte Ltd has been awarded a sub-contract work at Singapore’s Changi Airport for S$8.67 million (equivalent to RM23.25 million).

In a filing to the Bursa Malaysia today, EKIB (fundamental: 1.65; valuation:0.9) announced its subsidiary has entered into a sub-contract agreement with Penta Ocean Consctruction-Civil Tech Joint Venture (POC-CT JV) for the installation of prefabricated Vertical Drain Works (PVD) and PVD surcharge trial panel works for Singapore's Changi Airport for RM23.25 million, excluding goods and services tax (GST).

POC-CT JV is the main contractor for the land preparation works for Airport Development, Changi, awarded by the Ministry of Transport, Singapore.

Under the agreement, Kiaratex covenants with POC-CT JV to carry out and complete the sub-contract works, including the remedy of any defects in conformity and all aspects, with the terms and conditions set out in the agreement.

The final work shall be on a remeasured basis and a maximum 5% performance bond and 5% rendition sum shall be applicable. The Sub-Contract Agreement adopts the SOP Act(Building and Construction Industry Security and Payment Act).

"The Board of Directors is of the opinion that the above Sub-Contract is beneficial for the group, as it is within the group's business expertise of geosynthetic engineering. The Sub-Contract is expected to contribute to EKIB group's revenue from the financial year ending December 2015 onwards," it said.

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