KUCHING: Sarawak Consolidated Industries Bhd (SCIB) has secured five engineering, procurement, construction and commissioning (EPCC) contracts worth a total of RM175.4 million. Two of the contracts are in Malaysia and three others overseas — in Indonesia, Qatar and Oman.
This is believed to be the first time for SCIB, whose core businesses are in manufacture and supply of precast concrete products and industrialised building system (IBS) components, to expand its operations beyond Malaysian shores.
In a recent filing with Bursa Malaysia, SCIB said it had accepted a letter of award from Indonesia’s PT Samudera Nusantara Energi for project temporary facility PKG05 HEC office building.
The duration of the contract is from October 3, 2019 to May 2, 2020.
In Qatar, SCIB was awarded the construction, completion & maintenance of six villas (ground + 1st floor + penthouse, including external majlis, ancillary block works) contract at Al-Qutaifiya from Pavilion Qatar Engineering Co. W.L.L. The contract period is from October 10, 2019 to October 17, 2020.
The Oman contract involves complete construction of nine residential villas at Street 47, Block 327, Al Hayl, Muscat for client Revenue International L.L.C from October 16, 2019 to October 15, 2020.
“The estimated contract value of the contracts awarded above are US$27.99 million (equivalent to approximately RM117.2 million based on the exchange rate of USD1.00:RM4.187, being the middle rate prevailing as at 5pm on October 24, 2019 as published by Bank Negara Malaysia.)
“The formal agreement for the abovementioned contracts shall be executed in due course,” said SCIB.
In Malaysia, SCIB’s wholly-owned subsidiary SCIB Properties Sdn Bhd was awarded the two EPCC contracts by Edaran Kencana Sdn Bhd.
The contracts are both for main building works, Phase 1 Package C: Independent Utility Facility and Phase 1 Package C: maintenance, repair and overhaul. The duration period of both contracts is from November 8, 2019 to June 7, 2020.
“The estimated contract value of the contracts awarded above is RM58.2 million. The formal agreement for the contracts shall be executed in due course,” said SCIB. On risk factors, SCIB said the contracts are subject to normal business risk, such as construction risk, increase in cost due to any escalation of material costs, availability of skilled manpower, materials and contractual terms, including default provision and subcontractors’ performance.
“However, SCIB will put in place control measures and operational procedures to mitigate the risks.”
The company said the contracts are expected to contribute positively to SCIB group’s earnings over the duration of the contracts.
