KUALA LUMPUR (Feb 28): KKB Engineering Bhd has been awarded two contracts for water supply works in Sarawak amounting to RM110.8 million.

In a bourse filing today, the group said it had been awarded the contracts by Jabatan Bekalan Air Luar Bandar Sarawak.

One of the contracts is for the design, construction, completion, testing and commissioning of the proposed package SR1 (Southern Region) for the Sarawak Water Supply Grid Programme — Stressed Areas project and is set to start in March, lasting for 21 months until completion in December 2020.

The other contract is the construction and completion of the MSCL Pipeline and associated works in relation to the proposed water supply project from Kota Samarahan to Sebuyau, which is also part of the Sarawak Water Supply Grid Programme — Stressed Areas project. This contract is set to last one year from March and is set for completion in March 2020.

"The contracts will have no effect on the share capital of the company and is expected to contribute positively towards the earnings and net assets of the company and group for the duration of the contracts," the group said.

At the noon market break, shares in KKB were lower by three sen or 2.5% at RM1.17, with 114,400 shares being traded.