KUALA LUMPUR : WCE Holdings Bhd has been granted a RM301 million contract by way of direct award for the construction of the final section of the West Coast Expressway project.
WCE Holdings, formerly known as Kumpulan Europlus, said its wholly-owned construction arm KEB Builders Sdn Bhd was awarded the contract by the IJM Construction Sdn Bhd-Kumpulan Europlus Bhd (IJMC-KEB) joint-venture. IJM Construction is wholly-owned by IJM Corp Bhd.
The West Coast Expressway is a 313-km highway which stretches from Banting in Selangor to Taiping in Perak.
It is jointly developed by the Public Works Department (JKR) and West Coast Expressway Sdn Bhd, which is 80% owned by WCE Holdings. IJMC-KEB is the engineering, procurement and construction contractor.
The final section of the project, known as Section 7B, is about 10km in length and stretches from the beginning of the Assam Jawa Interchange towards the Tanjung Karang Interchange.
“As per the concession agreement signed with the Government of Malaysia (GOM) dated Jan 2, 2013 and the supplemental agreement dated Dec 11, 2014, the procurement method for Section 7 is to be carried out by way of an open tender,” WCE Holdings said in a filing with Bursa Malaysia today.
“However, in the interest of time and cost, the GOM has approved the procurement method of Section 7B to be implemented by way of a direct award to KEB Builders,” the group said, adding that the completion period of the contract is expected to be 30 months.
WCE Holdings shares closed down 1.5 sen or 3.06% at 47.5 sen today, for a market capitalisation of RM856 million. The counter saw 6.32 million shares traded.
IJM Corp fell two sen or 1.16% to RM1.70 today, after some 520,700 shares were traded. The group has a market value of RM6.19 billion.
By : Justin Lim – THE EDGE MARKETS