Wednesday October 13, 2010

LCCT job boosts order book by 21%

PETALING JAYA: Construction and property developer WCT Bhd is on the right track to achieve its target order book of RM2bil this year after clinching another new project last Friday from Malaysia Airports Holdings Bhd (MAHB).

As said by its deputy managing director Goh Chin Long during the AGM in May, the group was targeting to secure RM2bil worth of projects this year locally and internationally to add to its existing order book of RM3.2bil.

CIMB Research report had stated on Monday, that the award of the integrated complex for the new Low-Cost Carrier Terminal (LCCT) at the KL International Airport (KLIA) in Sepang was giving a “double positive” for WCT as it boosted the group’s construction order book by 21% to RM2.9bil.

“The award will also provide stable income to the group from FY13 onwards. This is the group’s second contract award this year and its first concession in Malaysia. With this, WCT is the first contractor to benefit from the implementation of entry-point projects under the Economic Transformation Programme,” it said.

In early February, the group’s 50%-owned Cebarco-WCT WLL was awarded a contract by MAF Investments Bahrain BSC (C) worth about RM467mil for the execution and completion of fit-out works at Bahrain City Centre Hotels in Manama. WCT had mentioned during the AGM in the middle of last year that it was eyeing the construction contract of the RM2bil second LCCT and was keen to participate to bid for the construction job. OSK Research in a report had said that WCT stood a “good chance” to win the second LCCT contract given its experience with the KLIA and ongoing Kota Kinabalu Airport and New Doha International Airport projects.

To recap, last Friday, WCT told Bursa Malaysia that they had won a 25-year concession from MAHB to build and operate an integrated complex at the new LCCT. It said the complex, estimated to cost RM486mil, would comprise a transportation hub for taxis and buses, one block of retail mall and car parks.

The group and MAHB would jointly undertake the concession via a special-purpose vehicle, where WCT would own a 70% stake and the rest held by MAHB. The concession might be extended by another 10 years subject to the terms and conditions to be mutually agreed by WCT and MAHB and the complex would be completed by June 30, 2012. Located 2km from the current main KLIA terminal building and slated to be completed by April 2012, it would be the largest LCCT in Asia with an initial handling capacity of 30 million passengers.

AmResearch in a report yesterday said WCT’s success in clinching the second LCCT contract under a competitive bidding process (there were four other bidders) was testament to the group’s expanding prowess as a leading Malaysian infrastructure specialist.

It also said for abroad projects, WCT’s management had hinted of an imminent contract awarded for a building contract in Qatar.

“The WCT-Gamuda Bhd joint-venture is also one of four or five parties that have been short listed for additional works at Dukhan Highway in Qatar valued around RM1.5bil. Final outcome of the bidding process could be known by year-end,” it said.

WCT Bhd managing director Taing Kim Hwa was reported to indicate that the group was looking at equal contributions from its business segments, including the construction and property development divisions, and the asset investment and management unit, which controlled the group’s retail and hotel entities. WCT’s real estate assets include the AEON Bukit Tinggi Shopping Centre in Klang and Premiere Hotel (which forms a part of the overall master development plan for Bandar Bukit Tinggi 1 in Klang).

This article is a verbatim copy of the original article from The Star.