Salcon bags RM71mil contract in Sri Lanka

PETALING JAYA: Salcon Bhd has bagged a RM71.27mil contract to build a storm water pumping station in Sri Lanka over a period of 21 months.

In a filing with Bursa Malaysia yesterday, the water and wastewater engineering company said its wholly owned subsidiary Salcon Engineering Bhd (SEB) had received a letter of acceptance from the Megapolis and Western Development Ministry, Sri Lanka, for the design and building of Ambatale Storm Water Pumping Station.

“The project is expected to contribute positively towards the earnings and net assets of Salcon Group for the financial years ending Dec 31, 2018, 2019 and 2020.

“Salcon does not foresee any exceptional risks other than execution risks associated with the project,” it said, adding that the project would not have any effect on the share capital and substantial shareholders’ shareholding of Salcon.

The company added that the date of commencement was upon the fulfillment of conditions precedent.

“The duration of the project is 21 months from the date of commencement,” it said.

In December 2017, SEB, together with its joint-venture (JV) company in Vietnam, bagged a construction contract worth 4.26 billion Vietnamese dong (RM77.1mil) to rehabilitate and upgrade the Haiphong water supply system.

The contract was awarded by Haiphong Water Joint Stock Co, the water authority of Haiphong City.

The JV company, Bach Dang-Salcon JV, was established between Bach Dang Construction Corp JSC (75%) and SEB (25%).

The project commenced on Jan 5, 2018 and will be completed within 24 months.