Sunway City Kuala Lumpur,28 October 2020
Sunway Construction Group Berhad (SunCon) today announced its acceptance of four Letters of Award (LOA) from The National Highways Authority of India (NHAI) and F&N Group of Companies worth RM333 million in total.
The first LOA from NHAI is to develop a 31.5km two-lane highway with paved shoulder in the state of Tamil Nadu, India for a total contract sum of approximately RM315 million (Rs553.83 Crore). The LOA also includes a 15-year Operations and Maintenance Contract worth approximately RM 850,000 (Rs1.5 Crore) per annum.
The project will be operated under the Hybrid Annuity Mode (HAM) for a concession period of 15 years plus 2-year construction period.
This highway project was awarded to the Sunway Construction Sdn Bhd – RNS Infrastructure Limited (Consortium). The consortium member, RNS Group is an Indian local company that provides a diversified spectrum of business from infrastructure construction services to education, hotels, power plant and wind farms, manufacture of vitrified and ceramic tiles, as well as dealership and showroom for Maruti cars.
The joint venture is a long-term relationship which was established during SunCon’s maiden venture into India in 2001. It has also established a proven track record with completion of 2 infrastructure projects back then.
SunCon, through its indirect subsidiary Sunway Engineering Sdn Bhd, has also secured three LOA from F&N Group of Companies. The LOA comprises external solar photovoltaic system projects in Malaysia for the construction of solar roof-tops
for in Shah Alam, Pulau Indah in Selangor and Karak in Pahang. The combined contract sum is valued at RM18.1 million.
Sunway Construction Group Managing Director Chung Soo Kiong commented, “We are pleased that SunCon continues to reinforce and solidify our foothold in India. This new contract is our second India HAM project for the financial year ending December 2020 and marks a significant milestone in our regional expansion strategy. We are optimistic that SunCon is in a good position to capitalise on the plenty of opportunities that is present in the Indian market.”
“On the domestic front, SunCon has made a remarkable headway in our renewable energy business in this financial year. We are pleased to secure these new projects and we will continue to pursue renewable energy opportunities in the country, aligned with our commitment towards the sustainability agenda.”
“Despite the challenging economic landscape, SunCon has exceeded its new order book target of RM2.0 billion for the financial year ending December 2020. The total new projects secured by SunCon including the latest projects announced amounted to RM2.3 billion. This demonstrates our resilient performance despite the economic downturn and we are well positioned to capture further opportunities locally as well as regionally, in line with our business expansion plan,” Chung shared.