KUALA LUMPUR (July 25): Sarawak Consolidated Industries Bhd (KL:SCIB) has accepted a contract worth RM162 million for an engineering, procurement, construction, and commissioning (EPCC) project over a 23-month period in Mualim, Perak.
The contract was awarded to SCIB’s wholly owned subsidiary, SCIB Properties Sdn Bhd (SCIBP), by Awana JV Suria Saga Sdn Bhd.
In a filing to Bursa Malaysia, SCIB said the acceptance of the job given by Awana JV Suria Saga Sdn Bhd is to allow the latter “an opportunity to repay the outstanding owing to SCIBP”.
The project, known as “Program Perumahan Penjawat Awam” (PPAM Mualim), involves the construction of both affordable housing and commercial units across two phases.
The first phase will consist of 346 single-storey affordable terraced houses and 28 two-storey shop offices. Meanwhile the second phase will include 455 double-storey affordable terraced houses.
"We are confident in our ability to deliver quality living spaces that meet the desired standards of construction and environmental sustainability," SCIB managing director Ku Chong Hong said. The recent projects and strategic partnerships continue to drive the group's confidence in maintaining profitability and achieving long-term growth, he added.
Notably, the contract was secured in relation with the previous settlement cum appointment of contractor agreement signed on April 15 between SCIBP and Awana after both parties had mutually agreed to scrap the EPCC contract back in July 2023.
Under the agreement, Awana must appoint SCIBP as the exclusive main contractor for PPAM Mualim that involves six phases of development. Among these, two phases are currently developed under the current contract win.
In addition, Awana must also repay an outstanding amount of RM19.13 million, which includes the remaining debt balance of RM18.64 million and an additional RM492,432.72 advanced on their behalf by SCIB Industrialised Building System Sdn Bhd.
Awana, which is involved in construction, general trading, and investment holding, had initially owed SCIBP RM18.72 million following the contract termination. The first payment of RM75,000 was made in August 2023.
Shares of SCIB remained unchanged at 29 sen on Thursday, valuing the company at RM191.03 million. However, the counter has experienced a 69.47% decline year-to-date.