MTD sees big payoff from Manila highway
By Zuraimi Abdullah
Published: 2008/09/27
BTimes
MTD Capital Bhd's top executives have hinted that it should reap handsome returns from its RM800 million highway venture in Manila from as early as March 2009.Income from its power plant venture in Sri Lanka, meanwhile, should start streaming in from November this year.Company executives said MTD will keep focusing on securing more construction, property, engineering, toll, power plant and port jobs in the 12 countries where it has a presence.They also asked the government to review the contract for the RM1.2 bilion East Coast Expressway 2, given rising material costs.
Executive chairman Datuk Dr Nik Hussain Abdul Rahman is excited with MTD's Philippine prospects.The 35km South Luzon Expressway toll project, Nik Hussain said, should start generating income from March next year."With a daily traffic of 120,000 vehicles, the road is as busy as our Federal Highway," Nik Hussain said after MTD's annual general meeting in Batu Caves, Selangor, yesterday.MTD holds an 80 per cent stake in the privatised project on a build, operate and transfer basis with a 30-year concession."We can start collecting toll once construction of the two sections under Phase One completes by February," he said.The two sections have a combined stretch of 28km, managing director Datuk Azmil Khalili Khalid said. The remaining 7km under Phase Two should be ready by the year-end.
Saturday, September 27, 2008
Electrified rail job may be scaled down
Electrified rail job may be scaled down
BTImes
Published: 2008/09/27
The northern track does not need a high-speed train service, as it is mostly cargo trains which ply the route rather than those carrying passengers
THE government is thinking of doing away with the electrification work for the double-tracking railway project from Butterworth to Padang Besar.It was learnt that the northern track does not need a high-speed train service as it is mostly cargo trains which ply the route rather than those carrying passengers."We have not really received any request from the government. But we were told that there is a possibility that the government wants to reduce the scope of work between Butterworth and Padang Besar," MMC Corp Bhd chief executive officer Hasni Harun said.MMC is partnering Gamuda Bhd to carry out the electrified double-tracking project. They are awaiting official word from Keretapi Tanah Melayu Bhd before starting talks with the government on whether to continue the project on a smaller scale.
On the impact will be if the scope of work is reduced, Hasni said: "A few hundred million (ringgit), but it will not affect our bottom line."
BTImes
Published: 2008/09/27
The northern track does not need a high-speed train service, as it is mostly cargo trains which ply the route rather than those carrying passengers
THE government is thinking of doing away with the electrification work for the double-tracking railway project from Butterworth to Padang Besar.It was learnt that the northern track does not need a high-speed train service as it is mostly cargo trains which ply the route rather than those carrying passengers."We have not really received any request from the government. But we were told that there is a possibility that the government wants to reduce the scope of work between Butterworth and Padang Besar," MMC Corp Bhd chief executive officer Hasni Harun said.MMC is partnering Gamuda Bhd to carry out the electrified double-tracking project. They are awaiting official word from Keretapi Tanah Melayu Bhd before starting talks with the government on whether to continue the project on a smaller scale.
On the impact will be if the scope of work is reduced, Hasni said: "A few hundred million (ringgit), but it will not affect our bottom line."
Friday, September 26, 2008
UBG, Mubadala in oil & gas venture
UBG, Mubadala in oil & gas venture
BTimes
Published: 2008/09/25
The equal joint venture will initially focus on Terengganu, Sabah and Sarawak, and sources say the partners will bid for exploration blocks from Petronas
CONSTRUCTION group UBG Bhd plans to partner Mubadala Development Co, the investment arm of Abu Dhabi, to set up an oil and gas exploration and production company in Malaysia.The equal joint venture will initially focus on Terengganu, Sabah and Sarawak, UBG said in a statement to Bursa Malaysia yesterday."It is the intention of Mubadala and UBG to procure the respective state governments to co-invest in the project company," it added.Both firms signed a heads of agreement for the proposed joint venture agreement in Kuala Lumpur yesterday.
The partnership will explore, develop, operate, produce, treat and sell petroleum within Malaysia.Sources said the tie-up will bid for exploration blocks from Petroliam Nasional Bhd, the state oil and gas company."UBG is Mubadala's exclusive partner in Malaysia for oil and gas," one of the sources said. This means that the joint venture will be the main vehicle for all future oil and gas investments by Mubadala in Malaysia.This could be the second major investment by Mubadala, which manages over US$10 billion (RM34.3 billion) of assets worldwide, in Malaysia.
Mubadala, Kuwait Finance House and Millennium Development International Co committed US$1.2 billion (RM4.1 billion) to buy 892ha of land in Iskandar Malaysia, Johor, last year."The increasing involvement of Mubadala in Malaysia may represent the entry of a long-term player that finds the Malaysian economic landscape in real estate and oil and gas attractive," the source added.The initial deal also reflects the ability of UBG's major shareholder, Abu Dhabi-Kuwait-Malaysia Investment Corp, to help pull in the Middle Eastern capital into Malaysia.Under the new shareholder, UBG has plans to turn itself into a construction and energy powerhouse. It recently completed buying builder Putrajaya Perdana Bhd and water infrastructure firm Loh & Loh Corp Bhd.
BTimes
Published: 2008/09/25
The equal joint venture will initially focus on Terengganu, Sabah and Sarawak, and sources say the partners will bid for exploration blocks from Petronas
CONSTRUCTION group UBG Bhd plans to partner Mubadala Development Co, the investment arm of Abu Dhabi, to set up an oil and gas exploration and production company in Malaysia.The equal joint venture will initially focus on Terengganu, Sabah and Sarawak, UBG said in a statement to Bursa Malaysia yesterday."It is the intention of Mubadala and UBG to procure the respective state governments to co-invest in the project company," it added.Both firms signed a heads of agreement for the proposed joint venture agreement in Kuala Lumpur yesterday.
The partnership will explore, develop, operate, produce, treat and sell petroleum within Malaysia.Sources said the tie-up will bid for exploration blocks from Petroliam Nasional Bhd, the state oil and gas company."UBG is Mubadala's exclusive partner in Malaysia for oil and gas," one of the sources said. This means that the joint venture will be the main vehicle for all future oil and gas investments by Mubadala in Malaysia.This could be the second major investment by Mubadala, which manages over US$10 billion (RM34.3 billion) of assets worldwide, in Malaysia.
Mubadala, Kuwait Finance House and Millennium Development International Co committed US$1.2 billion (RM4.1 billion) to buy 892ha of land in Iskandar Malaysia, Johor, last year."The increasing involvement of Mubadala in Malaysia may represent the entry of a long-term player that finds the Malaysian economic landscape in real estate and oil and gas attractive," the source added.The initial deal also reflects the ability of UBG's major shareholder, Abu Dhabi-Kuwait-Malaysia Investment Corp, to help pull in the Middle Eastern capital into Malaysia.Under the new shareholder, UBG has plans to turn itself into a construction and energy powerhouse. It recently completed buying builder Putrajaya Perdana Bhd and water infrastructure firm Loh & Loh Corp Bhd.
MTD: Cost of Jakarta toll road to top RM1b
BTimes
By Sharen Kaur
Published: 2008/09/26
The construction and toll road operator had earlier allocated RM858 million for the Cibitung-Cilincing highway, but the project cost could be 35 per cent more.
MTD Capital Bhd (MTD), a construction and toll road operator, said the 37km Cibitung-Cilincing toll road in Jakarta, Indonesia, will cost the company over RM1.1 billion to build or more than 35 per cent than originally budgeted.When MTD signed a 30-year concession agreement with the Indonesian government early last year, it allocated US$250 million (RM858 million) for the highway."The cost has built up with the increase in fuel and material prices. Land acquisition by the Indonesian government is also pending. We are hoping to start work by the second half of next year," MTD chairman Datuk Dr Nik Hussain Abdul Rahman told Business Times after the company's annual general meeting in Selangor yesterday.He said the project cost will be reviewed if there is a further price rise.
Nik Hussain said while there is no cost variation for the project, it will work out a price mechanism with the Indonesian government for toll collection over the concession period to mitigate the higher cost.MTD is targeting a return on investment of 20 per cent to 30 per cent from all its overseas toll operations.Besides the toll road in Indonesia, where it holds a 95 per cent interest, MTD has a 80 per cent stake in the 11.3 billion peso (RM875 million) South Luzon Expressway toll project in Manila, the Philippines."We hope to complete Phase 1 by the first quarter of next year and Phase 2 by 2010, which is when it will start to contribute to group revenue and profit," Nik Hussain said.It also holds less than 20 per cent interest in a consortium comprising IJM Corp, Bumi Hiway, WCT and CIDB, which has a 30-year highway concession in Andhra Pradesh, India.MTD aims to build its toll concession business and will move to Sri Lanka and China and look for new projects in the Philippines and Indonesia.
In Malaysia, it holds four toll concessions -
the Kuala Lumpur-Karak Highway,
the East Coast Expressway 1,
the East-West Link Expressway and
the Kuala Lumpur-Seremban Expressway, which are held via its subsidiary MTD Infraperdana Bhd (MTD Infra).
"The roads are profitable. We have made our money from operating them," Nik Hussain said.Combined daily traffic at the four highways is 330,000 and is expected to rise by two per cent to four per cent per year.Nik Hussain also said MTD Infra is expected to do better this year as more cars use the highways.For the 12 months to March 31 2008, it achieved a net profit of RM68.4 million on a revenue of RM277.5 million.
By Sharen Kaur
Published: 2008/09/26
The construction and toll road operator had earlier allocated RM858 million for the Cibitung-Cilincing highway, but the project cost could be 35 per cent more.
MTD Capital Bhd (MTD), a construction and toll road operator, said the 37km Cibitung-Cilincing toll road in Jakarta, Indonesia, will cost the company over RM1.1 billion to build or more than 35 per cent than originally budgeted.When MTD signed a 30-year concession agreement with the Indonesian government early last year, it allocated US$250 million (RM858 million) for the highway."The cost has built up with the increase in fuel and material prices. Land acquisition by the Indonesian government is also pending. We are hoping to start work by the second half of next year," MTD chairman Datuk Dr Nik Hussain Abdul Rahman told Business Times after the company's annual general meeting in Selangor yesterday.He said the project cost will be reviewed if there is a further price rise.
Nik Hussain said while there is no cost variation for the project, it will work out a price mechanism with the Indonesian government for toll collection over the concession period to mitigate the higher cost.MTD is targeting a return on investment of 20 per cent to 30 per cent from all its overseas toll operations.Besides the toll road in Indonesia, where it holds a 95 per cent interest, MTD has a 80 per cent stake in the 11.3 billion peso (RM875 million) South Luzon Expressway toll project in Manila, the Philippines."We hope to complete Phase 1 by the first quarter of next year and Phase 2 by 2010, which is when it will start to contribute to group revenue and profit," Nik Hussain said.It also holds less than 20 per cent interest in a consortium comprising IJM Corp, Bumi Hiway, WCT and CIDB, which has a 30-year highway concession in Andhra Pradesh, India.MTD aims to build its toll concession business and will move to Sri Lanka and China and look for new projects in the Philippines and Indonesia.
In Malaysia, it holds four toll concessions -
the Kuala Lumpur-Karak Highway,
the East Coast Expressway 1,
the East-West Link Expressway and
the Kuala Lumpur-Seremban Expressway, which are held via its subsidiary MTD Infraperdana Bhd (MTD Infra).
"The roads are profitable. We have made our money from operating them," Nik Hussain said.Combined daily traffic at the four highways is 330,000 and is expected to rise by two per cent to four per cent per year.Nik Hussain also said MTD Infra is expected to do better this year as more cars use the highways.For the 12 months to March 31 2008, it achieved a net profit of RM68.4 million on a revenue of RM277.5 million.
Iskandar Malaysia eyes Mideast funds
Published: 2008/09/26
BTimes
DUBAI: Malaysia is turning to Middle East investors to boost investments in a special economic zone in Johor as financial turmoil in the US slows interest from overseas.Iskandar Malaysia, three times bigger than Singapore, would be Malaysia's largest economic zone. The government says it should create 800,000 jobs and attract US$100 billion (US$1 = RM3.43) in investment over 25 years.Its proponents say it could be Southeast Asia's answer to China's Pearl River delta, a manufacturing heartland that turns out more than a quarter of China's worldwide exports.Speaking ahead of the Gulf Arab region's largest real estate exhibition in October, Arlida Ariff, managing director of Iskandar Investment, said the project was on track, having secured up to August this year RM39 billion, 80 per cent of a RM47 billion target by 2015.
"It's a new market (Middle East) for us and an area Malaysia had not really tapped in the past," she said."Those markets are not as affected by the financial crisis in the US and Europe."Malaysia has been a magnet for Middle Eastern investors flush with petrodollars who have been snapping up banks, hotels and malls.So far, much of the investment in Iskandar Malaysia from the Gulf Arab region has gone into real estate.Islamic lender Kuwait Finance House, Abu Dhabi investment agency Mubadala Development Co, Aldar Properties and Dubai-based Limitless are among the names that have signed up for the multi-billion-dollar scheme.
Arlida, previously the planning manager for the developer behind the Petronas Twin Towers in Kuala Lumpur, said investor interest remained with "the exception of financial services"."We had ambitions to create a new financial district and of course we wanted to attract names like Morgan Stanley and Lehman Brothers to operate in the special economic zones, but obviously some no longer exist ... we will have to continue attracting other names," she said.Iskandar Malaysia has managed to bring in some multinationals like General Electric and Arlida expects to seal a deal with an international theme park operator by year-end to develop one of three leisure parks in the 2,200 sq km economic zone.Reports in April said the government was in talks with Walt Disney. "We have been in conversations with most of the major theme park operators round the world, but with the financial crisis everyone is fairly careful right now, but we hope to announce a deal with at least one by year-end," Arlida said, declining to identify the companies it is in talks with.She said infrastructure works, which the government and utility firms are funding at a cost of about RM10 billion, had started. - Reuters
BTimes
DUBAI: Malaysia is turning to Middle East investors to boost investments in a special economic zone in Johor as financial turmoil in the US slows interest from overseas.Iskandar Malaysia, three times bigger than Singapore, would be Malaysia's largest economic zone. The government says it should create 800,000 jobs and attract US$100 billion (US$1 = RM3.43) in investment over 25 years.Its proponents say it could be Southeast Asia's answer to China's Pearl River delta, a manufacturing heartland that turns out more than a quarter of China's worldwide exports.Speaking ahead of the Gulf Arab region's largest real estate exhibition in October, Arlida Ariff, managing director of Iskandar Investment, said the project was on track, having secured up to August this year RM39 billion, 80 per cent of a RM47 billion target by 2015.
"It's a new market (Middle East) for us and an area Malaysia had not really tapped in the past," she said."Those markets are not as affected by the financial crisis in the US and Europe."Malaysia has been a magnet for Middle Eastern investors flush with petrodollars who have been snapping up banks, hotels and malls.So far, much of the investment in Iskandar Malaysia from the Gulf Arab region has gone into real estate.Islamic lender Kuwait Finance House, Abu Dhabi investment agency Mubadala Development Co, Aldar Properties and Dubai-based Limitless are among the names that have signed up for the multi-billion-dollar scheme.
Arlida, previously the planning manager for the developer behind the Petronas Twin Towers in Kuala Lumpur, said investor interest remained with "the exception of financial services"."We had ambitions to create a new financial district and of course we wanted to attract names like Morgan Stanley and Lehman Brothers to operate in the special economic zones, but obviously some no longer exist ... we will have to continue attracting other names," she said.Iskandar Malaysia has managed to bring in some multinationals like General Electric and Arlida expects to seal a deal with an international theme park operator by year-end to develop one of three leisure parks in the 2,200 sq km economic zone.Reports in April said the government was in talks with Walt Disney. "We have been in conversations with most of the major theme park operators round the world, but with the financial crisis everyone is fairly careful right now, but we hope to announce a deal with at least one by year-end," Arlida said, declining to identify the companies it is in talks with.She said infrastructure works, which the government and utility firms are funding at a cost of about RM10 billion, had started. - Reuters
Wednesday, September 24, 2008
The Miracle-Worker of the Delhi Metro
MARCH 19, 200Business Week
The Miracle-Worker of the Delhi Metro How an uncommon bureaucrat personally secured foreign funding and the cooperation of government agencies to build the Indian city's subway system .
Every day, for 16 hours a day, the 240 cars of the Delhi Metro roll quietly beneath the urban sprawl of India's capital. The trains are new. They arrive on time. The stations are clean. And the system is profitable, thanks in large part to the fact that the electricity that powers the system is government-subsidized. A well-run subway is a marvel even in a first-world city. In India, where public works are often models of dysfunction, it's nothing short of a miracle. The initial phase of the $2.3 billion project wrapped up in December, 2005, on budget and nearly three years ahead of schedule.
That's why, when you talk to anyone trying to build a road or a bridge or power plant in India, the Delhi Metro comes up in conversation. "When I arrived on the project, there wasn't a lot of optimism about India," says John Triplett, head of India operations for Parsons Brinkerhoff, the U.S. firm that was program manager for the metro. "Now projects are succeeding and there's a lot more optimism. India can do it." Behind the success of the Delhi Metro stands a 50-year veteran of the railways, Elattuvalapil Sreedharan.
UNCOMMON BUREAUCRAT In the 1990s, Sreedharan built the 470-mile Konkan Railway on India's western coast, the first major railway project since the British left India in 1947. Sreedharan, now 74, is an aberration among Indian bureaucrats: He enjoys breaking rules to get things done. When he set out to build an information technology park outside Delhi, the requisite permissions were slow in coming. Sreedharan simply went ahead. Completed in 2005, the IT park now is thriving and houses several high-profile Indian companies, including Genpact.
And he's fast. "We finalize deals in 24 hours," he says.
He also boasts that on the metro project the average duration of major tenders was 19 days, compared with the three to nine months that is the norm. Sreedharan did three things to get the project done. First, with infrastructure projects languishing all over India for lack of funds, he went overseas, tapping the Japan Bank of International Cooperation for loans to cover 60% of the cost. By comparison, it took the city of Kolkata 22 years to build its own metro because of a paucity of funds.
Second, Sreedharan scoured the world for top companies with extensive experience in the field. Pacific Consultants International from Japan advised on the engineering matters, Korea's Rotem and Japan's Mitsubishi supplied the initial shipment of coaches, while France's Alstom led the consortium responsible for the design of the automatic train control system.
TRAFFIC AND POLLUTION SOLUTION Most importantly, Sreedharan got the various Indian government agencies to work together. Initially there was a disagreement between the Delhi Metro Corp. and its partner, Indian Railways, about what kind of tracks to use. But after intense discussion, the contractors came up with a plan to assemble the metro carriages in Bangalore and roll them on Indian Railways track straight to the New Delhi metro.
The system is already helping to take the edge off Delhi's mammoth traffic and pollution problems. An average of 500,000 commuters travel underground daily instead of driving their own cars and scooters or packing into buses. As a result, authorities say, pollution levels in Delhi are down by a third, and they see no need to add to the city's fleet of 7,500 buses. Congestion has eased to where those buses now travel an average of 11 mph. That's up from around 8 mph before the metro was built—a serious achievement in a city with world-class traffic jams.
The Miracle-Worker of the Delhi Metro How an uncommon bureaucrat personally secured foreign funding and the cooperation of government agencies to build the Indian city's subway system .
Every day, for 16 hours a day, the 240 cars of the Delhi Metro roll quietly beneath the urban sprawl of India's capital. The trains are new. They arrive on time. The stations are clean. And the system is profitable, thanks in large part to the fact that the electricity that powers the system is government-subsidized. A well-run subway is a marvel even in a first-world city. In India, where public works are often models of dysfunction, it's nothing short of a miracle. The initial phase of the $2.3 billion project wrapped up in December, 2005, on budget and nearly three years ahead of schedule.
That's why, when you talk to anyone trying to build a road or a bridge or power plant in India, the Delhi Metro comes up in conversation. "When I arrived on the project, there wasn't a lot of optimism about India," says John Triplett, head of India operations for Parsons Brinkerhoff, the U.S. firm that was program manager for the metro. "Now projects are succeeding and there's a lot more optimism. India can do it." Behind the success of the Delhi Metro stands a 50-year veteran of the railways, Elattuvalapil Sreedharan.
UNCOMMON BUREAUCRAT In the 1990s, Sreedharan built the 470-mile Konkan Railway on India's western coast, the first major railway project since the British left India in 1947. Sreedharan, now 74, is an aberration among Indian bureaucrats: He enjoys breaking rules to get things done. When he set out to build an information technology park outside Delhi, the requisite permissions were slow in coming. Sreedharan simply went ahead. Completed in 2005, the IT park now is thriving and houses several high-profile Indian companies, including Genpact.
And he's fast. "We finalize deals in 24 hours," he says.
He also boasts that on the metro project the average duration of major tenders was 19 days, compared with the three to nine months that is the norm. Sreedharan did three things to get the project done. First, with infrastructure projects languishing all over India for lack of funds, he went overseas, tapping the Japan Bank of International Cooperation for loans to cover 60% of the cost. By comparison, it took the city of Kolkata 22 years to build its own metro because of a paucity of funds.
Second, Sreedharan scoured the world for top companies with extensive experience in the field. Pacific Consultants International from Japan advised on the engineering matters, Korea's Rotem and Japan's Mitsubishi supplied the initial shipment of coaches, while France's Alstom led the consortium responsible for the design of the automatic train control system.
TRAFFIC AND POLLUTION SOLUTION Most importantly, Sreedharan got the various Indian government agencies to work together. Initially there was a disagreement between the Delhi Metro Corp. and its partner, Indian Railways, about what kind of tracks to use. But after intense discussion, the contractors came up with a plan to assemble the metro carriages in Bangalore and roll them on Indian Railways track straight to the New Delhi metro.
The system is already helping to take the edge off Delhi's mammoth traffic and pollution problems. An average of 500,000 commuters travel underground daily instead of driving their own cars and scooters or packing into buses. As a result, authorities say, pollution levels in Delhi are down by a third, and they see no need to add to the city's fleet of 7,500 buses. Congestion has eased to where those buses now travel an average of 11 mph. That's up from around 8 mph before the metro was built—a serious achievement in a city with world-class traffic jams.
Tuesday, September 23, 2008
Emrail may be front runner for MMC-Gamuda rail job
Published: 2008/09/23
BTimes
Emrail's bid is one of four proposals under technical evaluation by MMC-Gamuda, the main contractor for the RM12.5 billion Ipoh-Padang Besar rail project
BUILDERS MMC Corp Bhd and Gamuda Bhd may award a contract worth over RM1 billion to lay parallel railway lines over 329km from Ipoh to Padang Besar by the end of this year.Business Times understands that the MMC-Gamuda team, which holds the main contract for the RM12.5 billion Ipoh-Padang Besar double-tracking project, had called for tenders in June, attracting local and international bidders.A source said four proposals are under technical evaluation and the winning bid will be decided by December.The offers were from
Australia's MVM Rail Pty Ltd, a provider of rail track construction and maintenance services;
Hiss Niaga Sdn Bhd, a local Bumiputera firm;
Emrail Sdn Bhd, a railway engineering expert; and
a China-based consortium.
It is learnt that MVM and the Chinese consortium had offered to do the job for RM2 billion and over RM1 billion respectively. Hiss Niaga, meanwhile, made a partial offer for the track laying contract, worth about RM500 million.Emrail (formerly TIME Salam Engineering Sdn Bhd, a unit under Renong Group) offered to lay the tracks along the 329km stretch for RM1.2 billion.
"Emrail could be the front runner for the job as it has over 20 years of engineering skills and had successfully completed the Rawang-Ipoh job last year," the source said. "It has high-tech machinery that is not in use which can be readily deployed at the Ipoh-Padang Besar site. It was able to work out a proposal lowering the contract sum as it has the equipment," he added. Emrail's portfolio includes a RM700 million contract to lay tracks for the Rawang-Ipoh project, and a RM40-odd million job to lay tracks along the Kerdau-Sg Yu east coast line. Both projects have been completed.
In July, the MMC-Gamuda team awarded the rail systems contract worth RM1 billion to Ingress Corp Bhd's 49 per cent associate company, Balfour Beatty Rail Sdn Bhd, and its joint venture partner, Ansaldo STS Malaysia Sdn Bhd. - By Sharen Kaur
(Note: Ipoh-Rawang is 182 km. Cost of track laying was RM700mil (2007 price). This makes cost per km 3.85mil per km. 2007 price. Apply 40% hike, it becomes RM5.36 mil/km, 2008 price.
Emrail is now offering RM1b for 329km = RM3.04mil/km for Ipoh-Pdg Besar)
BTimes
Emrail's bid is one of four proposals under technical evaluation by MMC-Gamuda, the main contractor for the RM12.5 billion Ipoh-Padang Besar rail project
BUILDERS MMC Corp Bhd and Gamuda Bhd may award a contract worth over RM1 billion to lay parallel railway lines over 329km from Ipoh to Padang Besar by the end of this year.Business Times understands that the MMC-Gamuda team, which holds the main contract for the RM12.5 billion Ipoh-Padang Besar double-tracking project, had called for tenders in June, attracting local and international bidders.A source said four proposals are under technical evaluation and the winning bid will be decided by December.The offers were from
Australia's MVM Rail Pty Ltd, a provider of rail track construction and maintenance services;
Hiss Niaga Sdn Bhd, a local Bumiputera firm;
Emrail Sdn Bhd, a railway engineering expert; and
a China-based consortium.
It is learnt that MVM and the Chinese consortium had offered to do the job for RM2 billion and over RM1 billion respectively. Hiss Niaga, meanwhile, made a partial offer for the track laying contract, worth about RM500 million.Emrail (formerly TIME Salam Engineering Sdn Bhd, a unit under Renong Group) offered to lay the tracks along the 329km stretch for RM1.2 billion.
"Emrail could be the front runner for the job as it has over 20 years of engineering skills and had successfully completed the Rawang-Ipoh job last year," the source said. "It has high-tech machinery that is not in use which can be readily deployed at the Ipoh-Padang Besar site. It was able to work out a proposal lowering the contract sum as it has the equipment," he added. Emrail's portfolio includes a RM700 million contract to lay tracks for the Rawang-Ipoh project, and a RM40-odd million job to lay tracks along the Kerdau-Sg Yu east coast line. Both projects have been completed.
In July, the MMC-Gamuda team awarded the rail systems contract worth RM1 billion to Ingress Corp Bhd's 49 per cent associate company, Balfour Beatty Rail Sdn Bhd, and its joint venture partner, Ansaldo STS Malaysia Sdn Bhd. - By Sharen Kaur
(Note: Ipoh-Rawang is 182 km. Cost of track laying was RM700mil (2007 price). This makes cost per km 3.85mil per km. 2007 price. Apply 40% hike, it becomes RM5.36 mil/km, 2008 price.
Emrail is now offering RM1b for 329km = RM3.04mil/km for Ipoh-Pdg Besar)
Saturday, September 20, 2008
Scomi still keen on Penang monorail
Scomi still keen on Penang monorail
Published: 2008/09/20
SCOMI Engineering Bhd, a monorail system supplier, is still interested to provide a monorail system for Penang, although the Penang Monorail project has been removed from the Ninth Malaysia Plan.The company is willing to look any city, state or federal government of any country that is considering implementing a monorail system. "We are more than willing to go to the discussion table and see how best we can fit into the requirement," its president, Hilmy Zaini told Bernama recently. Scomi Engineering through a consortium with Malaysian Resources Corp Bhd had put in the bid in the early part of this year for the Penang monorail project.
Among other bidders was Japan's Hitachi.The 52km-monorail, expected to serve as the backbone for the state's public transportation network, was reported to be worth RM1.6 billion. According to Hilmy, the company carried out a thorough feasibility study for the project, including ridership and alignment studies as well as underground mapping. Specific studies had to be taken in order to submit a meaningful bid, he said.The consortium has spent several million ringgit so far, an amount that would have been normally incurred to put in such studies, he said. On the impact of delaying the project, Hilmy said the obvious setback will be the price escalation."When we put in the bid, there was a specific period price validity. That has lapsed now. "Prices as you know, keep increasing. The longer you wait, the more expensive it is going to be."Concrete and steel prices have gone up more or less by 20 per cent. "Of course if there is firm interest again for the Penang monorail, we can do another costing as such," said Hilmy.Asked whether Penangites urgently needed the monorail system, Hilmy said "it was an open secret that they have been asking for such a system for the last 10 years." "What we have found out is that the most optimal system for Penang, at the right price and at the right construction period, is the monorail." - Bernama
Published: 2008/09/20
SCOMI Engineering Bhd, a monorail system supplier, is still interested to provide a monorail system for Penang, although the Penang Monorail project has been removed from the Ninth Malaysia Plan.The company is willing to look any city, state or federal government of any country that is considering implementing a monorail system. "We are more than willing to go to the discussion table and see how best we can fit into the requirement," its president, Hilmy Zaini told Bernama recently. Scomi Engineering through a consortium with Malaysian Resources Corp Bhd had put in the bid in the early part of this year for the Penang monorail project.
Among other bidders was Japan's Hitachi.The 52km-monorail, expected to serve as the backbone for the state's public transportation network, was reported to be worth RM1.6 billion. According to Hilmy, the company carried out a thorough feasibility study for the project, including ridership and alignment studies as well as underground mapping. Specific studies had to be taken in order to submit a meaningful bid, he said.The consortium has spent several million ringgit so far, an amount that would have been normally incurred to put in such studies, he said. On the impact of delaying the project, Hilmy said the obvious setback will be the price escalation."When we put in the bid, there was a specific period price validity. That has lapsed now. "Prices as you know, keep increasing. The longer you wait, the more expensive it is going to be."Concrete and steel prices have gone up more or less by 20 per cent. "Of course if there is firm interest again for the Penang monorail, we can do another costing as such," said Hilmy.Asked whether Penangites urgently needed the monorail system, Hilmy said "it was an open secret that they have been asking for such a system for the last 10 years." "What we have found out is that the most optimal system for Penang, at the right price and at the right construction period, is the monorail." - Bernama
Tuesday, September 9, 2008
Notices on UEM Builders, CIMA takeover
Tuesday September 9, 2008
The Star
Notices on UEM Builders, CIMA takeover
PETALING JAYA: UEM Group Bhd had served notices of takeover on UEM Builders Bhd and Cement Industries of Malaysia Bhd (CIMA).
UEM Group, which owns 51.71% of UEM Builders Bhd, proposed to acquire the remaining stake at RM1.42 per share. UEM Builders said yesterday it had received the notice of takeover and the board would not seek an alternative party to make a similar offer. It said the board would appoint an independent adviser to advise the independent directors and minority shareholder on the offer.
The other shareholders of UEM Builders are Lembaga Tabung Haji with 5.7%, or 55.24 million shares, and the Employees Provident Fund Board with 44.856 million shares, or 4.65%. UEM Builders closed one sen higher at RM1.36 yesterday.
UEM Group, which owns 50.38% or 71.19 million CIMA shares, also made an offer to acquire the remaining CIMA shares at RM6.26 per share. As for CIMA, its board had appointed RHB Investment Bank Bhd independent adviser to advise the independent directors and minority shareholders. CIMA closed five sen higher at RM5.90 yesterday.
The Star
Notices on UEM Builders, CIMA takeover
PETALING JAYA: UEM Group Bhd had served notices of takeover on UEM Builders Bhd and Cement Industries of Malaysia Bhd (CIMA).
UEM Group, which owns 51.71% of UEM Builders Bhd, proposed to acquire the remaining stake at RM1.42 per share. UEM Builders said yesterday it had received the notice of takeover and the board would not seek an alternative party to make a similar offer. It said the board would appoint an independent adviser to advise the independent directors and minority shareholder on the offer.
The other shareholders of UEM Builders are Lembaga Tabung Haji with 5.7%, or 55.24 million shares, and the Employees Provident Fund Board with 44.856 million shares, or 4.65%. UEM Builders closed one sen higher at RM1.36 yesterday.
UEM Group, which owns 50.38% or 71.19 million CIMA shares, also made an offer to acquire the remaining CIMA shares at RM6.26 per share. As for CIMA, its board had appointed RHB Investment Bank Bhd independent adviser to advise the independent directors and minority shareholders. CIMA closed five sen higher at RM5.90 yesterday.
Aseambankers: IJM paying fair price for ICP
Tuesday September 9, 2008
Aseambankers: IJM paying fair price for ICP
By LAW KAI CHOW The Star
PETALING JAYA: In view of the current weak market conditions, IJM Corp Bhd’s proposed takeover of Industrial Concrete Products Bhd (ICP) at RM3.30 per share is fairly priced, Aseambankers said yesterday. In a statement, Aseambankers said based on the consensus 2009 price/earnings ratio of 10.2 times for ICP, the offer was considered reasonable for a mid-cap company such as ICP under the current bearish situation. The offer price is also 4.8% higher than ICP’s average share price of RM3.15 over the past year.
The research house also said the proposed acquisition, which includes a share swap, would provide shareholders exposure to the more diversified IJM’s earnings base and higher share liquidity.How ever, it said it would be better if IJM had offered RM3.30 cash instead of the partial cash-share swap option to ICP shareholders. Aseambankers said IJM would enjoy the full benefits of acquiring ICP over the long term because ICP’s foothold in China offered huge infrastructure works potential in the future.
“We estimate the privatisation would positively impact IJM’s net profit by 9% to 10% annually based on ICP’s net profit forecast of RM109mil for the financial year ending March 31 (FY09) and RM122mil in FY10,” it said, adding that the impact on IJM’s earning per share (EPS) would not be felt in the short term due to the enlarged share base.
ICP shares yesterday rose for the second consecutive trading day to close up 13 sen, or 4.6%, at RM2.96. However, this was still below the RM3.30 per share offered by IJM to acquire the remaining 134.4 million 50 sen shares, or 36.6% equity, in ICP on Friday. At yesterday’s closing price, ICP shares are trading at a 34 sen discount to the offer price.
The offer valued ICP at RM1.21bil, or 16.5% premium, at Friday’s closing price of RM2.83.
The acquisition exercise of 26 sen cash and 0.6 new IJM share for each ICP share will cost IJM RM443.5mil but the latter needs only a cash outlay of RM34.9mil. Meanwhile, AmResearch believed the privatisation would enable IJM to maximise the earnings potential of ICP, which has a strong order book on the domestic front. It estimated that with this acquisition, IJM’s FY10 EPS would increase by 2%. However, AmResearch was concerned with the construction margin and uncertainty over the growth rate of IJM’s order book.
IJM plans to fund the acquisition with internal funds or borrowings, and upon completion of the exercise, ICP would be de-listed from Bursa Malaysia. The exercise is expected to be completed by the year-end.
ICP is one of the largest pre-cast concrete producers in Malaysia. Its net profit jumped 40.8% year-on-year to RM32.3mil in the first quarter ended June 30. For FY08, it recorded net profit of RM86.8mil on revenue of RM787.9mil compared with RM59.2mil and RM612.2mil respectively in FY07.
Aseambankers: IJM paying fair price for ICP
By LAW KAI CHOW The Star
PETALING JAYA: In view of the current weak market conditions, IJM Corp Bhd’s proposed takeover of Industrial Concrete Products Bhd (ICP) at RM3.30 per share is fairly priced, Aseambankers said yesterday. In a statement, Aseambankers said based on the consensus 2009 price/earnings ratio of 10.2 times for ICP, the offer was considered reasonable for a mid-cap company such as ICP under the current bearish situation. The offer price is also 4.8% higher than ICP’s average share price of RM3.15 over the past year.
The research house also said the proposed acquisition, which includes a share swap, would provide shareholders exposure to the more diversified IJM’s earnings base and higher share liquidity.How ever, it said it would be better if IJM had offered RM3.30 cash instead of the partial cash-share swap option to ICP shareholders. Aseambankers said IJM would enjoy the full benefits of acquiring ICP over the long term because ICP’s foothold in China offered huge infrastructure works potential in the future.
“We estimate the privatisation would positively impact IJM’s net profit by 9% to 10% annually based on ICP’s net profit forecast of RM109mil for the financial year ending March 31 (FY09) and RM122mil in FY10,” it said, adding that the impact on IJM’s earning per share (EPS) would not be felt in the short term due to the enlarged share base.
ICP shares yesterday rose for the second consecutive trading day to close up 13 sen, or 4.6%, at RM2.96. However, this was still below the RM3.30 per share offered by IJM to acquire the remaining 134.4 million 50 sen shares, or 36.6% equity, in ICP on Friday. At yesterday’s closing price, ICP shares are trading at a 34 sen discount to the offer price.
The offer valued ICP at RM1.21bil, or 16.5% premium, at Friday’s closing price of RM2.83.
The acquisition exercise of 26 sen cash and 0.6 new IJM share for each ICP share will cost IJM RM443.5mil but the latter needs only a cash outlay of RM34.9mil. Meanwhile, AmResearch believed the privatisation would enable IJM to maximise the earnings potential of ICP, which has a strong order book on the domestic front. It estimated that with this acquisition, IJM’s FY10 EPS would increase by 2%. However, AmResearch was concerned with the construction margin and uncertainty over the growth rate of IJM’s order book.
IJM plans to fund the acquisition with internal funds or borrowings, and upon completion of the exercise, ICP would be de-listed from Bursa Malaysia. The exercise is expected to be completed by the year-end.
ICP is one of the largest pre-cast concrete producers in Malaysia. Its net profit jumped 40.8% year-on-year to RM32.3mil in the first quarter ended June 30. For FY08, it recorded net profit of RM86.8mil on revenue of RM787.9mil compared with RM59.2mil and RM612.2mil respectively in FY07.
Monday, September 8, 2008
Talk of IJM taking unit private resurfaces
Talk of IJM taking unit private resurfaces
BTimes
Published: 2008/09/05
SPECULATION that IJM Corp Bhd may take its subsidiary, Industrial Concrete Products Bhd (ICP), private has re-emerged, Aseambankers says in a report.Construction group IJM currently holds 63.5 per cent of ICP, which makes building materials.The deal could improve IJM's net profit in fiscal 2010 by up to five per cent if it is done in cash and all minorities accept the offer, said the report, which was released yesterday."Based on current weak market conditions, the (assumed) 10 per cent premium could well entice ICP minorities to take up the offer," it added.
Aseambankers has assumed an offer price with a 10 per cent premium over ICP's last closing price of RM2.80. This would value ICP at RM3.08 a share, or RM1.13 billion in entirety.It would also cost IJM RM413 million for the rest of ICP shares it does not own. If IJM decides to offer shares, it will need to issue about 9.5 per cent of its paid-up capital."We have been monitoring ICP and are positive on its prospects, especially its spun pile operation in China, which offers huge infrastructure works potential," Aseambankers said.
ICP made a net profit of RM32 million in its first quarter to June 30 2008, a 69 per cent jump from the same period last year. This was 22 per cent of IJM's net profit, Aseambankers said.However, it will not change its recommendation for investors to hold IJM shares due to broader market concerns overriding small positive factors. ICP shares closed unchanged at RM2.80, while IJM shares rose two per cent to RM5.15 yesterday.
BTimes
Published: 2008/09/05
SPECULATION that IJM Corp Bhd may take its subsidiary, Industrial Concrete Products Bhd (ICP), private has re-emerged, Aseambankers says in a report.Construction group IJM currently holds 63.5 per cent of ICP, which makes building materials.The deal could improve IJM's net profit in fiscal 2010 by up to five per cent if it is done in cash and all minorities accept the offer, said the report, which was released yesterday."Based on current weak market conditions, the (assumed) 10 per cent premium could well entice ICP minorities to take up the offer," it added.
Aseambankers has assumed an offer price with a 10 per cent premium over ICP's last closing price of RM2.80. This would value ICP at RM3.08 a share, or RM1.13 billion in entirety.It would also cost IJM RM413 million for the rest of ICP shares it does not own. If IJM decides to offer shares, it will need to issue about 9.5 per cent of its paid-up capital."We have been monitoring ICP and are positive on its prospects, especially its spun pile operation in China, which offers huge infrastructure works potential," Aseambankers said.
ICP made a net profit of RM32 million in its first quarter to June 30 2008, a 69 per cent jump from the same period last year. This was 22 per cent of IJM's net profit, Aseambankers said.However, it will not change its recommendation for investors to hold IJM shares due to broader market concerns overriding small positive factors. ICP shares closed unchanged at RM2.80, while IJM shares rose two per cent to RM5.15 yesterday.
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