This article first appeared in The Edge Financial Daily, on November 24, 2015.

KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) has bagged a RM106.75 million contract from a joint venture between KLCC (Holdings) Sdn Bhd and QD Asia Pasific Ltd to undertake substructure and associated works for a proposed mixed commercial development at Lot 176, Persiaran KLCC in the Kuala Lumpur City Centre.

In a filing with Bursa Malaysia yesterday, SunCon said its subsidiary Sunway Construction Sdn Bhd had accepted a letter of award (LOA) from Cititower Sdn Bhd for the proposed project.

It added that the LOA is in conjunction with the Package 2 contract for the construction and completion of piling, substructure and associated works for the proposed mixed commercial development of Lot 185 and Lot 167(K) at Persiaran KLCC.

“The date of completion for the whole project shall be on Dec 28, 2017. The project is expected to contribute positively to the earnings of [the] SunCon group from the financial year ending Dec 31, 2016,” said SunCon.

“The project is subject to normal construction risk of material price fluctuation. However, with the past experiences and expertise of Sunway Construction in construction projects, this risk could be mitigated,” it added.

SunCon shares closed up one sen or 0.75% at RM1.35 yesterday, with a market capitalisation of RM1.73 billion.