KUALA LUMPUR (Nov 10): Ibraco Bhd and China Railway Group Ltd have clinched a construction project worth RM568.81 million involving infrastructure works for the Kuching Urban Transportation System (KUTS).
Ibraco via its wholly owned unit Ibraco Construction Sdn Bhd (ICSB) together with China Railway units, China Railway Engineering Corp (M) Sdn Bhd and Nanyang Tunnel Engineering Sdn Bhd, won the tender for Blue Line Package 1 from Rembus to Stutong for the KUTS project from Sarawak Metro Sdn Bhd (SMSB) on Friday.
SMSB is the implementer of the KUTS projects that aim to transform Kuching into a dynamic and competitive city by providing user-friendly mobility services through the Greater Kuching area with the introduction of the autonomous rapid transit. Package 1 of the KUTS project will run from Rembus to Stutong.
In its announcement to Bursa Malaysia, Ibraco said ICSB had partnered with the two companies to leverage the skills, experience and capabilities of all parties to participate in the open tender by SMSB. A joint venture (JV) company will be incorporated to undertake the project, and the incorporation of the JV company will be announced at a later date.
The project is expected to be completed by Dec 31, 2025 for Stage 1 and June 30, 2026 for Stage 1A. Ibraco said the project will be funded via internally generated funds and external borrowings of the company.
“The project is expected to contribute positively to the earnings and net assets of Ibraco for the duration of the project and will not have any effect on the share capital and substantial shareholders’ shareholdings of Ibraco group,” it said.
For the cumulative six months ended June 30, 2023, Ibraco’s net profit more than doubled to RM23.68 million from RM9.77 million as revenue climbed 32% to RM168.6 million from RM127.78 million the prior year.
As at end-June this year, the group had RM267.34 million unbilled sales and an outstanding order book of RM922.16 million.
Ibraco closed up one sen or 1.64% at 62 sen on Friday, with a market value of RM338.55 million.