Tuesday May 26, 2009
Analysts: Pahang-Selangor tunnel project sign of improving contract flows
By YVONNE TAN
PETALING JAYA: The construction of the 44.6km tunnel to channel raw water from Pahang to Selangor, which will start on June 1, is a significant signal that contract flows are improving, analysts said. “We think this is a good development and it should trigger the award of contracts for the remaining packages in the entire water transfer project,” AmResearch senior analyst Mak Hoy Ken said. “I think we can all heave a sigh of relief that this part of the project is finally underway. It signals that the current government under the new administration is pro active,” Kenanga head of research Yeonzon Yeow told StarBiz yesterday.
A signing ceremony to formalise the award for the construction of the RM1.3bil tunnel was held yesterday between the parties involved. It was witnessed by Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui.
The main contractor for this project is a consortium in which Japanese contractors Shimizu Corp and Nishimatsu Construction Co Ltd each has an interest of 30% – a majority of 60% – while IJM Corp Bhd and UEM Builders Bhd have 20% each.
It is understood that every party has seconded the relevant staff to a project management team, which will then manage the project collectively.
The tunnel project, which is aimed at meeting the needs of water consumers in Selangor, Kuala Lumpur and Putrajaya until 2025, is estimated to have an overall cost of about RM3.9bil. The RM1.3bil is the first of four phases in the RM3.9bil tunnel project. Besides the tunnel project, there are other works involved in the entire water transfer project, which is estimated to have a cost of about RM8bil. The remaining contracts have not been awarded but it is understood that interested parties have already been pre-qualified for the remaining work packages. When contacted, a UEM Builders Bhd spokesman said the company was “considering” pursuing the other packages in the entire project but did not elaborate.
Kenanga’s Yeow said yesterday’s signing between the parties would serve as a “benchmark” for other key government projects to be sped up. “It bodes well for the economy because then, domestic spending is able to compensate for weaker export sales which is what the Government intended in the first place to counter a major slowdown in economic growth,” he said.
The bulk of the tunnel project cost will be financed through a loan from the Japan International Corp Agency (JICA) while the rest will be funded by a federal government grant.
Once the tunnel is completed, Selangor would have to pay RM80mil a year to the Pahang government for water.
Showing posts with label UEM. Show all posts
Showing posts with label UEM. Show all posts
Tuesday, May 26, 2009
Monday, March 30, 2009
Earlier report on Penang 2nd Bridge (2008-08-18)
KUALA LUMPUR, Aug 18 2008 (Bernama) - Construction works on the Second Penang Bridge are still going on, says the UEM Group, adding that two years of work worth RM200 million has already been done."The construction work continues. So far, at UEM Group Bhd, there has been no specific... formal instruction to do otherwise," said UEM Group managing director, Datuk Ahmad Pardas Senin to reporters after UEM World Bhd's extraordinary general meeting here Monday."UEM Builders still have a contract with us," he added when was asked on the progress of the project.
Some confusion had set in when UEM Builders Bhd received a letter from Jambatan Kedua Sdn Bhd (JKPP), the company that owns the Second Penang Bridge, on July 30, informing that it had taken over the duties of the Special Task Force and offered certain works on the project to UEM Builders.The government, however, had awarded the project to UEM Group last year on a concession basis whereby UEM Group subsequently awarded the construction of the job to a joint venture of Chinese Harbour Construction Company (CHEC) and UEM Builders with the former holding 51 percent.
"UEM Group did not receive the letter. That letter was sent to UEM Builders and UEM Builders have already replied in a query to Bursa Malaysia," he said.UEM Builders, meanwhile, in filing to Bursa Malaysia on Aug 6 said the scope of work awarded to it by Jambatan Kedua Sdn Bhd was over-lapping with the scope of work being negotiated by its parent company, UEM Group, with the government.UEM Builders said UEM Group was in negotiations with the government pursuant to an earlier decision made by the government to award the project to UEM group on a concession (build-operate-transfer) basis.
Asked if UEM Group would ask for compensation if the government totally revoked the project, Ahmad Pardas said, "I don't want to speculate.""At the end of the day it is a government project. We will always respect. The government has full right to which way they want the project to be." He added that the group was grateful to have been chosen as a party to undertake the project.The project is expected to be completed in 2011."We have done two years work. If we waited until everything is in place, nothing could have been done. We would not have been able to fulfill our undertaking by 2011," Ahmad Pardas said.He also added that if the company is able to progress with all things in place, it would be able to keep the momentum.
Elsewhere, Ahmad Pardas said the discussion on adjustment of toll rates nationwide was ongoing."We will always work and support whatever the government wants to do," he said, adding that nevertheless there would be issues to be addressed if there are to be any changes.-- BERNAMA
Some confusion had set in when UEM Builders Bhd received a letter from Jambatan Kedua Sdn Bhd (JKPP), the company that owns the Second Penang Bridge, on July 30, informing that it had taken over the duties of the Special Task Force and offered certain works on the project to UEM Builders.The government, however, had awarded the project to UEM Group last year on a concession basis whereby UEM Group subsequently awarded the construction of the job to a joint venture of Chinese Harbour Construction Company (CHEC) and UEM Builders with the former holding 51 percent.
"UEM Group did not receive the letter. That letter was sent to UEM Builders and UEM Builders have already replied in a query to Bursa Malaysia," he said.UEM Builders, meanwhile, in filing to Bursa Malaysia on Aug 6 said the scope of work awarded to it by Jambatan Kedua Sdn Bhd was over-lapping with the scope of work being negotiated by its parent company, UEM Group, with the government.UEM Builders said UEM Group was in negotiations with the government pursuant to an earlier decision made by the government to award the project to UEM group on a concession (build-operate-transfer) basis.
Asked if UEM Group would ask for compensation if the government totally revoked the project, Ahmad Pardas said, "I don't want to speculate.""At the end of the day it is a government project. We will always respect. The government has full right to which way they want the project to be." He added that the group was grateful to have been chosen as a party to undertake the project.The project is expected to be completed in 2011."We have done two years work. If we waited until everything is in place, nothing could have been done. We would not have been able to fulfill our undertaking by 2011," Ahmad Pardas said.He also added that if the company is able to progress with all things in place, it would be able to keep the momentum.
Elsewhere, Ahmad Pardas said the discussion on adjustment of toll rates nationwide was ongoing."We will always work and support whatever the government wants to do," he said, adding that nevertheless there would be issues to be addressed if there are to be any changes.-- BERNAMA
Thursday, November 27, 2008
Pahang-Selangor water transfer hangs in balance
KUALA LUMPUR, Nov 27 – The Pahang-Selangor water transfer project hangs in the balance over the question of whether the Malaysian government or Japan has the final say on which consortium is awarded the lucrative contract to bore a 45km tunnel through the Titiwangsa Range. At stake also is a RM2.5 billion soft loan from the Japan Bank for International Cooperation (JBIC).
The Malaysian Insider has learnt that the Cabinet and officials from the Ministry of Energy, Water and Communications are resisting attempts by the Japanese International Cooperation Agency to influence the choice of the successful bidder for the contract. Government officials have been tight-lipped about the behind-the-scenes wrangling but Datuk Joseph Salang Gandum’s comment in Parliament last week gave a hint of the seriousness of the issue.
When asked to give an update on the soft loan from Japan Bank for International Cooperation (JBIC) and the status of the water transfer project, he remarked: “Malaysia is a sovereign country and will not sell its dignity and name…the government already has plans if the money is not channelled to us due to certain reasons.”
Checks show that three bids for the project were received from: Shimizu-Nishimatsu-UEM-IJM; Taisei-HRA Teguh and Kajima Construction. From the start, the government made it clear that tender for the water transfer project should be a benchmark for open tenders in the country. The Ministry of Energy, Water and Communications came up with an international competitive bidding scheme to select a international consultants who would scrutinise the bids. It is understood that two of the bidders submitted conditional bids.
Under the international tender process, any company or party that submits a conditional bid should be disqualified. This is because the price quoted in the conditional bid could change substantially. For example, the lowest bidder for the 45-km tunnel job submitted a conditional bid that was based on a particular rock strength of the tunnel. But independent reports obtained by the government suggest that the rock strength is higher than what the cost estimates are based on.
As such, the government believes that it could be saddled with a variation order of several hundred million ringgit if it awards the contract to the consortium with the lowest bid.
It is in favour of awarding the contract for the project to the company which had submitted the second lowest bid, which was also the only bidder who did not submit a conditional tender.
But JICA is insisting that the contract be awarded to the lowest bidder.
The Malaysian Insider understands that the Cabinet was briefed on the stand off and supports the decision of the Energy, Water and Communications ministry to award the contract to the second bidder.
A government official told The Malaysian Insider: “The terms in the bid documents state clearly that we are not bound to accept the lowest bid but must take into account all factors in the tender. Accepting a conditional bid could be disastrous for the government. Based on our research, there is every chance of a variation order between RM200 million to RM400 million.” It is understood that the difference between the lowest and second bid is RM150 million. JICA has apparently asked the government to negotiate with the party with the lowest tender and get them to remove the “variable component” of the bid.
Government officials believe that going down this path could lead to suits by the two other companies that took part in the tender process. The reason: there is a clause which states that no party can alter, correct or withdraw anything from their bid documents once it has been opened and evaluated.
So the standoff continues. But it is learnt that government officials are willing to forego the Japanese loan. “This is an issue of sovereign rights. Malaysia will be a joke if we have a open tender but don’t follow the rules of the game.” It is unclear how the government plans to raise the RM1.5 billion for the tunnel project if the loan falls through.
The Malaysian Insider has learnt that the Cabinet and officials from the Ministry of Energy, Water and Communications are resisting attempts by the Japanese International Cooperation Agency to influence the choice of the successful bidder for the contract. Government officials have been tight-lipped about the behind-the-scenes wrangling but Datuk Joseph Salang Gandum’s comment in Parliament last week gave a hint of the seriousness of the issue.
When asked to give an update on the soft loan from Japan Bank for International Cooperation (JBIC) and the status of the water transfer project, he remarked: “Malaysia is a sovereign country and will not sell its dignity and name…the government already has plans if the money is not channelled to us due to certain reasons.”
Checks show that three bids for the project were received from: Shimizu-Nishimatsu-UEM-IJM; Taisei-HRA Teguh and Kajima Construction. From the start, the government made it clear that tender for the water transfer project should be a benchmark for open tenders in the country. The Ministry of Energy, Water and Communications came up with an international competitive bidding scheme to select a international consultants who would scrutinise the bids. It is understood that two of the bidders submitted conditional bids.
Under the international tender process, any company or party that submits a conditional bid should be disqualified. This is because the price quoted in the conditional bid could change substantially. For example, the lowest bidder for the 45-km tunnel job submitted a conditional bid that was based on a particular rock strength of the tunnel. But independent reports obtained by the government suggest that the rock strength is higher than what the cost estimates are based on.
As such, the government believes that it could be saddled with a variation order of several hundred million ringgit if it awards the contract to the consortium with the lowest bid.
It is in favour of awarding the contract for the project to the company which had submitted the second lowest bid, which was also the only bidder who did not submit a conditional tender.
But JICA is insisting that the contract be awarded to the lowest bidder.
The Malaysian Insider understands that the Cabinet was briefed on the stand off and supports the decision of the Energy, Water and Communications ministry to award the contract to the second bidder.
A government official told The Malaysian Insider: “The terms in the bid documents state clearly that we are not bound to accept the lowest bid but must take into account all factors in the tender. Accepting a conditional bid could be disastrous for the government. Based on our research, there is every chance of a variation order between RM200 million to RM400 million.” It is understood that the difference between the lowest and second bid is RM150 million. JICA has apparently asked the government to negotiate with the party with the lowest tender and get them to remove the “variable component” of the bid.
Government officials believe that going down this path could lead to suits by the two other companies that took part in the tender process. The reason: there is a clause which states that no party can alter, correct or withdraw anything from their bid documents once it has been opened and evaluated.
So the standoff continues. But it is learnt that government officials are willing to forego the Japanese loan. “This is an issue of sovereign rights. Malaysia will be a joke if we have a open tender but don’t follow the rules of the game.” It is unclear how the government plans to raise the RM1.5 billion for the tunnel project if the loan falls through.
Thursday, October 23, 2008
Global crisis will slow UEM's growth
UEM: Global crisis will slow growth
By Zaidi Isham Ismail
Published: 2008/10/23
BT
INFRASTRUCTURE and property group UEM Group Bhd expects slower growth in the months ahead because of the global economic slowdown.Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, that UEM Group, which has up to RM5 billion worth of projects in the country and overseas, will not be severely affected by the crisis although slower growth is expected."We don't feel the impact just yet, but there will definitely be slower growth."But our projects in Iskandar Malaysia and India are proceeding as planned," Ahmad Pardas told Business Times at the group's Hari Raya gathering in Kuala Lumpur yesterday.
The diverse group, which has interests in construction, property and highways, among other sectors, controls UEM Builders Bhd, Pharmaniaga Bhd and UEM Land Bhd, which is expected to be listed by month-end.UEM Group in turn is wholly owned by government investment arm Khazanah Nasional Bhd.
On the second Penang bridge, Ahmad Pardas said the group was still awaiting word from the government on any new development.The government last month withdrew the second bridge concession awarded to the group.
By Zaidi Isham Ismail
Published: 2008/10/23
BT
INFRASTRUCTURE and property group UEM Group Bhd expects slower growth in the months ahead because of the global economic slowdown.Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, that UEM Group, which has up to RM5 billion worth of projects in the country and overseas, will not be severely affected by the crisis although slower growth is expected."We don't feel the impact just yet, but there will definitely be slower growth."But our projects in Iskandar Malaysia and India are proceeding as planned," Ahmad Pardas told Business Times at the group's Hari Raya gathering in Kuala Lumpur yesterday.
The diverse group, which has interests in construction, property and highways, among other sectors, controls UEM Builders Bhd, Pharmaniaga Bhd and UEM Land Bhd, which is expected to be listed by month-end.UEM Group in turn is wholly owned by government investment arm Khazanah Nasional Bhd.
On the second Penang bridge, Ahmad Pardas said the group was still awaiting word from the government on any new development.The government last month withdrew the second bridge concession awarded to the group.
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.
Friday, August 15, 2008
Interstate water tunnelling
Contractor picked for interstate water tunnelling job
By Ooi Tee Ching
Published: 2008/08/15
BTimes
THE government has decided on the contractor to undertake the 45km tunnelling package of the Pahang-Selangor interstate Raw Water transfer project. The job will be awarded next month.The multi-billion ringgit project involves the construction of the Kelau dam in Pahang and a 44.6km transfer tunnel under the Main Range to bring 2,260 million litres of raw water per day to Hulu Langat treatment plant in Selangor. "The Finance Ministry has approved of the contractor to undertake the tunnelling package," said Energy, Water and Communications Minister Datuk Shaziman Abu Mansor. "We will recommend to JBIC (the Japan Bank for International Co-operation) and the announcement will be made next month," he told reporters after officiating at the opening of the National Solar Photovoltaic conference in Putrajaya yesterday.
In March 2005, the government signed a 82.04 billion yen loan (RM) with JBIC for the project. The loan was to be repaid over 40 years, with an annual interest rate of 0.95 per cent. However, the government can only activate the loan after completing the pre-qualification and tender process. It was reported that three Japanese firms have been shortlisted to carry out the tunnelling package; Shimizu Corp which has UEM group and IJM Corp Bhd as its partners, Taisei Corp (with HRA Teguh Sdn Bhd) and a stand-alone bid by Kajima Corp. Initially slated to commence in 2003, this project was met with protests from both local and international non-governmental organisations like the Centre of Orang Asli Concerns, Sahabat Alam Malaysia and Friends of the Earth-Japan. Due to the protests, the project period had to be revised twice, first to 2005-2012 and then 2008-2015.
By Ooi Tee Ching
Published: 2008/08/15
BTimes
THE government has decided on the contractor to undertake the 45km tunnelling package of the Pahang-Selangor interstate Raw Water transfer project. The job will be awarded next month.The multi-billion ringgit project involves the construction of the Kelau dam in Pahang and a 44.6km transfer tunnel under the Main Range to bring 2,260 million litres of raw water per day to Hulu Langat treatment plant in Selangor. "The Finance Ministry has approved of the contractor to undertake the tunnelling package," said Energy, Water and Communications Minister Datuk Shaziman Abu Mansor. "We will recommend to JBIC (the Japan Bank for International Co-operation) and the announcement will be made next month," he told reporters after officiating at the opening of the National Solar Photovoltaic conference in Putrajaya yesterday.
In March 2005, the government signed a 82.04 billion yen loan (RM) with JBIC for the project. The loan was to be repaid over 40 years, with an annual interest rate of 0.95 per cent. However, the government can only activate the loan after completing the pre-qualification and tender process. It was reported that three Japanese firms have been shortlisted to carry out the tunnelling package; Shimizu Corp which has UEM group and IJM Corp Bhd as its partners, Taisei Corp (with HRA Teguh Sdn Bhd) and a stand-alone bid by Kajima Corp. Initially slated to commence in 2003, this project was met with protests from both local and international non-governmental organisations like the Centre of Orang Asli Concerns, Sahabat Alam Malaysia and Friends of the Earth-Japan. Due to the protests, the project period had to be revised twice, first to 2005-2012 and then 2008-2015.
Thursday, July 3, 2008
2nd Penang bridge's cost may breach RM5b
2nd Penang bridge's cost may breach RM5b
By Marina Emmanuel
Published: 2008/07/03
BTimes
The total cost has escalated to RM4.59 billion from RM3.6 billion, says UEM Group, adding that it can pass on extra costs if the prices of raw materials go up further
UEM Group Bhd, the main contractor of the second Penang bridge, says the total cost of the project is now RM4.59 billion, but it can even breach RM5 billion if prices of raw materials rise further."The costs of these items can only be determined as and when we procure them," managing director Datuk Ahmad Pardas Senin told reporters during a site visit at Batu Kawan on mainland Penang.The bulk of the cost, or RM3.32 billion, is for the portion of the bridge over water, followed by RM997 million for the portion over land . Another RM285 million (6.2%) is for the design, concept and preliminary works that was agreed with the government.However, UEM can pass on additional costs if the price of materials like steel, is higher.
"I believe that without the fluctuation clause (in an agreement signed between UEM and the government), no organisation will be willing to start any construction because you will definitely be running at a loss," said Ahmad Pardas."I would also like to clarify that the original costing for the whole project is RM3.6 billion and not RM2.7 billion as reported by some media previously."The RM2.7 billion was actually referred to the cost of building the 17km-bridge span over water. As the construction of a bridge would also include those built on land, another RM900 million should also be included in the original costing as it was allocated to build expressways, interchange and toll plazas," Ahmad Pardas added.
The 24km second Penang bridge (of which 17km will be on water) will link Penang Island and Seberang Prai.UEM Construction Sdn Bhd, a subsidiary of UEM Builders Bhd, has named port builder and bridge construction firm China Harbour Engineering Co Ltd as its main contractor.UEM Group now holds the concession for the first Penang bridge. Under that agreement, UEM could seek compensation if a second bridge was built.However, Ahmad Pardas declined to say what UEM is planning to do, saying there are many ways to deal with the issue.UEM Group also yesterday indicated its intention to tender for the concession rights of the second bridge."The company has the experience and knowledge as its is currently managing two important crossings which are the Penang Bridge and the Malaysia-Singapore Second Link."All these will definitely help justify why UEM Group should be the most suitable party ...," Ahmad Pardas said.Meanwhile, UEM is set to buy 112ha of land in Batu Kawan and Batu Maung for the project. It is expected to pay a total of RM57 million in compensation to affected parties which include private land owners and Penang Development Corp.
By Marina Emmanuel
Published: 2008/07/03
BTimes
The total cost has escalated to RM4.59 billion from RM3.6 billion, says UEM Group, adding that it can pass on extra costs if the prices of raw materials go up further
UEM Group Bhd, the main contractor of the second Penang bridge, says the total cost of the project is now RM4.59 billion, but it can even breach RM5 billion if prices of raw materials rise further."The costs of these items can only be determined as and when we procure them," managing director Datuk Ahmad Pardas Senin told reporters during a site visit at Batu Kawan on mainland Penang.The bulk of the cost, or RM3.32 billion, is for the portion of the bridge over water, followed by RM997 million for the portion over land . Another RM285 million (6.2%) is for the design, concept and preliminary works that was agreed with the government.However, UEM can pass on additional costs if the price of materials like steel, is higher.
"I believe that without the fluctuation clause (in an agreement signed between UEM and the government), no organisation will be willing to start any construction because you will definitely be running at a loss," said Ahmad Pardas."I would also like to clarify that the original costing for the whole project is RM3.6 billion and not RM2.7 billion as reported by some media previously."The RM2.7 billion was actually referred to the cost of building the 17km-bridge span over water. As the construction of a bridge would also include those built on land, another RM900 million should also be included in the original costing as it was allocated to build expressways, interchange and toll plazas," Ahmad Pardas added.
The 24km second Penang bridge (of which 17km will be on water) will link Penang Island and Seberang Prai.UEM Construction Sdn Bhd, a subsidiary of UEM Builders Bhd, has named port builder and bridge construction firm China Harbour Engineering Co Ltd as its main contractor.UEM Group now holds the concession for the first Penang bridge. Under that agreement, UEM could seek compensation if a second bridge was built.However, Ahmad Pardas declined to say what UEM is planning to do, saying there are many ways to deal with the issue.UEM Group also yesterday indicated its intention to tender for the concession rights of the second bridge."The company has the experience and knowledge as its is currently managing two important crossings which are the Penang Bridge and the Malaysia-Singapore Second Link."All these will definitely help justify why UEM Group should be the most suitable party ...," Ahmad Pardas said.Meanwhile, UEM is set to buy 112ha of land in Batu Kawan and Batu Maung for the project. It is expected to pay a total of RM57 million in compensation to affected parties which include private land owners and Penang Development Corp.
Thursday, June 26, 2008
2nd Penang bridge deal has variable cost clause
2nd Penang bridge deal has variable cost clause
The Star
26 June 2008
KUALA LUMPUR: The building cost of the second Penang bridge is expected to be higher than the estimated RM4.3bil, as the agreement includes a variable cost clause which accounts for possible increase in building material prices. According to UEM World Bhd chairman Tan Sri Ahmad Tajuddin Ali, the RM4.3bil price tag was based on building material prices as at end-December 2007 and included the cost of land acquisition and design. Since January, international prices of steel and cement have escalated close to 50%. Locally, the Government has also liberalised both the sectors by removing the ceiling prices of certain-related products.
Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, having the clause did not mean that the group “would be irresponsible to allow the project cost to increase. This project won't be completed next month but will last until 2011. Today, the prices are up but we don't need to buy all the steel and concrete unless we're so conservative to assume that the uptrend will continue for the next two years,” he said after the company AGM yesterday.
Saying that construction was likely to pick up speed in the “next couple of months,” Ahmad Pardas added that the group could leverage on its subsidiary, Cement Industries of Malaysia Bhd, to manage part of the material cost.
Ahmad Tajuddin noted that the Government planned to open the tender for the concession to operate and maintain the bridge. “The bridge will be owned by the Government, which will determine the toll rate later,” he said, adding that UEM World intended to submit a bid for the concession.
Ahmad Pardas said the group saved about 25% in procurement cost for its Nusajaya project, thanks to e-bidding and pre-buying strategies. Despite the current challenging economic conditions, UEM World is determined to achieve its key performance index of 13% growth in revenue and return on equity (ROE) of 13% for the year ending Dec 31, 2008. This would be driven by its engineering and construction, healthcare and property development businesses, Ahmad Pardas said. Last year, UEM World's revenue grew 46% while generating a ROE of 41%.
The Star
26 June 2008
KUALA LUMPUR: The building cost of the second Penang bridge is expected to be higher than the estimated RM4.3bil, as the agreement includes a variable cost clause which accounts for possible increase in building material prices. According to UEM World Bhd chairman Tan Sri Ahmad Tajuddin Ali, the RM4.3bil price tag was based on building material prices as at end-December 2007 and included the cost of land acquisition and design. Since January, international prices of steel and cement have escalated close to 50%. Locally, the Government has also liberalised both the sectors by removing the ceiling prices of certain-related products.
Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, having the clause did not mean that the group “would be irresponsible to allow the project cost to increase. This project won't be completed next month but will last until 2011. Today, the prices are up but we don't need to buy all the steel and concrete unless we're so conservative to assume that the uptrend will continue for the next two years,” he said after the company AGM yesterday.
Saying that construction was likely to pick up speed in the “next couple of months,” Ahmad Pardas added that the group could leverage on its subsidiary, Cement Industries of Malaysia Bhd, to manage part of the material cost.
Ahmad Tajuddin noted that the Government planned to open the tender for the concession to operate and maintain the bridge. “The bridge will be owned by the Government, which will determine the toll rate later,” he said, adding that UEM World intended to submit a bid for the concession.
Ahmad Pardas said the group saved about 25% in procurement cost for its Nusajaya project, thanks to e-bidding and pre-buying strategies. Despite the current challenging economic conditions, UEM World is determined to achieve its key performance index of 13% growth in revenue and return on equity (ROE) of 13% for the year ending Dec 31, 2008. This would be driven by its engineering and construction, healthcare and property development businesses, Ahmad Pardas said. Last year, UEM World's revenue grew 46% while generating a ROE of 41%.
Friday, May 30, 2008
UEM Builders posts RM29m Q1 net profit
UEM Builders posts RM29m Q1 net profit
Business Times
Published: 2008/05/30
UEM Builders Bhd reported RM29.2 million net profit on RM595.8 million revenue in the first quarter ended March 31 2008, compared with RM17 million net profit and RM714.6 million revenue in the same period last year.The firm said the lower revenue was mainly due to completion of major domestic construction projects in 2007 such as the Rawang-Ipoh electrified double track project and PLUS third lane widening project (Seremban-Ayer Keroh), while other new projects are in the start-up phase and have yet to generate revenue."We are happy with the results and will strive to achieve our targets despite a challenging business environment where significant cost escalation in material prices has become the norm," managing director Datuk Ridza Abdoh Salleh said in a statement.He said the company is implementing various measures to counter the impact of price volatility in construction materials and fuel, including the inclusion of negotiated price escalation clauses in the construction contracts.
"Moving forward, the group is positive that the Penang second bridge project will be implemented as planned," he said, adding that progress of works on the project has been significant and the company has incurred more than RM200 million to-date.
Business Times
Published: 2008/05/30
UEM Builders Bhd reported RM29.2 million net profit on RM595.8 million revenue in the first quarter ended March 31 2008, compared with RM17 million net profit and RM714.6 million revenue in the same period last year.The firm said the lower revenue was mainly due to completion of major domestic construction projects in 2007 such as the Rawang-Ipoh electrified double track project and PLUS third lane widening project (Seremban-Ayer Keroh), while other new projects are in the start-up phase and have yet to generate revenue."We are happy with the results and will strive to achieve our targets despite a challenging business environment where significant cost escalation in material prices has become the norm," managing director Datuk Ridza Abdoh Salleh said in a statement.He said the company is implementing various measures to counter the impact of price volatility in construction materials and fuel, including the inclusion of negotiated price escalation clauses in the construction contracts.
"Moving forward, the group is positive that the Penang second bridge project will be implemented as planned," he said, adding that progress of works on the project has been significant and the company has incurred more than RM200 million to-date.
Wednesday, April 30, 2008
2nd Penang Bridge: More ships for sea-deepening job
2nd Penang Bridge: More ships for sea-deepening job
By Marina Emmanuel Published: 2008/04/30 BUSINESS TIMES
CHINA Harbour Engineering Company Ltd (CHEC), the main contractor of the second Penang bridge, is awaiting the arrival of 18 more ships to complete its sea-deepening work for the project. It is learnt that the Beijing-based company, which has already brought in two dredging ships, is waiting for permits from local authorities to bring in the remaining vessels.
"It is likely to take CHEC four months to complete the deepening work, and the company remains confident that it can finish its 17km sea-portion of the bridge on schedule," industry sources told Business Times.
CHEC, which set up an office in Penang last year, has so far deployed 200 of its staff for the project.
The 24km second Penang bridge (of which 17km will be on water) linking Penang island and Seberang Prai, is the largest overseas project for CHEC in terms of value. Upon completion in 2011, the bridge is set to be the longest in Southeast Asia.
State-owned CHEC is a Fortune 500 company, with a global footprint via 15 companies and 20 overseas resident offices. It is a unit of China Communications Construction Co Ltd, China's top port builder. UEM Construction Sdn Bhd has named CHEC as its main contractor for the bridge project and a consortium, named CHEC-UEMC, has been formed. CHEC holds 51 per cent of the venture while UEM has the rest.
Meanwhile, Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is also Finance Minister, is expected to chair a special meeting this week on the bridge project. It is learnt that Abdullah, together with Tan Sri Zaini Omar, who heads a taskforce on the project, is expected to sit down with the project's stakeholders which include Minister of Finance officials, UEM and CHEC to finalise cost and design issues.
Sources say that the government will allow no variation orders to the ceiling price of the bridge which has been set at RM4.3 billion. "CHEC has told the government that its 17km sea portion will cost RM2.3 billion and expressed its willingness to have independent parties verify its costing for the sea portion," they added.
By Marina Emmanuel Published: 2008/04/30 BUSINESS TIMES
CHINA Harbour Engineering Company Ltd (CHEC), the main contractor of the second Penang bridge, is awaiting the arrival of 18 more ships to complete its sea-deepening work for the project. It is learnt that the Beijing-based company, which has already brought in two dredging ships, is waiting for permits from local authorities to bring in the remaining vessels.
"It is likely to take CHEC four months to complete the deepening work, and the company remains confident that it can finish its 17km sea-portion of the bridge on schedule," industry sources told Business Times.
CHEC, which set up an office in Penang last year, has so far deployed 200 of its staff for the project.
The 24km second Penang bridge (of which 17km will be on water) linking Penang island and Seberang Prai, is the largest overseas project for CHEC in terms of value. Upon completion in 2011, the bridge is set to be the longest in Southeast Asia.
State-owned CHEC is a Fortune 500 company, with a global footprint via 15 companies and 20 overseas resident offices. It is a unit of China Communications Construction Co Ltd, China's top port builder. UEM Construction Sdn Bhd has named CHEC as its main contractor for the bridge project and a consortium, named CHEC-UEMC, has been formed. CHEC holds 51 per cent of the venture while UEM has the rest.
Meanwhile, Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is also Finance Minister, is expected to chair a special meeting this week on the bridge project. It is learnt that Abdullah, together with Tan Sri Zaini Omar, who heads a taskforce on the project, is expected to sit down with the project's stakeholders which include Minister of Finance officials, UEM and CHEC to finalise cost and design issues.
Sources say that the government will allow no variation orders to the ceiling price of the bridge which has been set at RM4.3 billion. "CHEC has told the government that its 17km sea portion will cost RM2.3 billion and expressed its willingness to have independent parties verify its costing for the sea portion," they added.
Tuesday, April 29, 2008
Second Penang Bridge plan on despite delay
GEORGE TOWN (NST 2008-04-27): The Second Penang Bridge project is on track despite announcements that may have suggested otherwise.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the federal government would proceed with the RM4.3 billion project linking Batu Kawan in Seberang Perai Selatan and Batu Maung on the island.He said the government had wanted to review the construction cost, design and land acquisition process and not the project itself.
"Once these issues are resolved, we expect the construction of the bridge to proceed as planned but pending that, there will a delay in carrying out the project," he said after chairing the inaugural Federal Action Council for Penang meeting in Tasek Gelugor yesterday."This, however, does not suggest that the federal government is reviewing the project with an intention to scrap it," he told a news conference here after meeting his constituents in Teluk Air Tawar here yesterday.
Nor Mohamed said many quarters had misunderstood Prime Minister Datuk Seri Abdullah Ahmad Badawi's announcement that the project would be delayed and would be reviewed under the Ninth Malaysia Plan (9MP).Nor Mohamed, who is Tasek Gelugor member of parliament, said the main concern was to ensure that the design would reduce cost."We are also reviewing the entire cost of the project as we are facing a steep price increase in construction materials," he said.The building of the 24km bridge is expected to be completed by 2011.The deadline to complete the building of the bridge has been extended by nine months. UEM and its consortium partner, China Harbour Engineering Company, are building the bridge.
Nor Mohamed said the review was not subject to the Second Penang Bridge alone but to all major projects to be rolled out under the 9MP due to the rising cost of building materials."This global trend (price hike) has forced the government to adjust major economic policies as we foresee the situation lasting for the next few years."He added that the government was looking into ways to ensure that all projects under 9MP were carried out.
Meanwhile, Nor Mohamed said both the federal and state governments needed to work together for the proposed RM2.2 billion Penang monorail project. He said it would be difficult for the federal government to proceed with the project if the two governments did not co-operate."This is important because land matters are under their (state government's) purview. It would be difficult for us to implement the project."There must be understanding among us or it will be difficult to implement projects."Nor Mohamad did not elaborate on the help required by the federal government but added that it had no intention to put such projects in the state on hold."We have stated that we are sincere in bringing development, progress and prosperity to the people of Penang."
He said the government had yet to approve the monorail system and the Penang Outer Ring Road, another mega project."They are not in the list of projects approved under the Ninth Malaysia Plan."We have not come to that stage yet. "There are some matters relating to land acquisition which have to be settled," he said when asked to comment on Chief Minister Lim Guan Eng's statement that the state was keen to proceed with the monorail project.
NST 2008-04-28
He (LGE) said the project needed the cooperation and approval of the state government as it involved state land.
The RM1.2 billion monorail project is among mega projects under the Ninth Malaysia Plan that involves building a 51.2km track to complement the island’s public transportation network.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the federal government would proceed with the RM4.3 billion project linking Batu Kawan in Seberang Perai Selatan and Batu Maung on the island.He said the government had wanted to review the construction cost, design and land acquisition process and not the project itself.
"Once these issues are resolved, we expect the construction of the bridge to proceed as planned but pending that, there will a delay in carrying out the project," he said after chairing the inaugural Federal Action Council for Penang meeting in Tasek Gelugor yesterday."This, however, does not suggest that the federal government is reviewing the project with an intention to scrap it," he told a news conference here after meeting his constituents in Teluk Air Tawar here yesterday.
Nor Mohamed said many quarters had misunderstood Prime Minister Datuk Seri Abdullah Ahmad Badawi's announcement that the project would be delayed and would be reviewed under the Ninth Malaysia Plan (9MP).Nor Mohamed, who is Tasek Gelugor member of parliament, said the main concern was to ensure that the design would reduce cost."We are also reviewing the entire cost of the project as we are facing a steep price increase in construction materials," he said.The building of the 24km bridge is expected to be completed by 2011.The deadline to complete the building of the bridge has been extended by nine months. UEM and its consortium partner, China Harbour Engineering Company, are building the bridge.
Nor Mohamed said the review was not subject to the Second Penang Bridge alone but to all major projects to be rolled out under the 9MP due to the rising cost of building materials."This global trend (price hike) has forced the government to adjust major economic policies as we foresee the situation lasting for the next few years."He added that the government was looking into ways to ensure that all projects under 9MP were carried out.
Meanwhile, Nor Mohamed said both the federal and state governments needed to work together for the proposed RM2.2 billion Penang monorail project. He said it would be difficult for the federal government to proceed with the project if the two governments did not co-operate."This is important because land matters are under their (state government's) purview. It would be difficult for us to implement the project."There must be understanding among us or it will be difficult to implement projects."Nor Mohamad did not elaborate on the help required by the federal government but added that it had no intention to put such projects in the state on hold."We have stated that we are sincere in bringing development, progress and prosperity to the people of Penang."
He said the government had yet to approve the monorail system and the Penang Outer Ring Road, another mega project."They are not in the list of projects approved under the Ninth Malaysia Plan."We have not come to that stage yet. "There are some matters relating to land acquisition which have to be settled," he said when asked to comment on Chief Minister Lim Guan Eng's statement that the state was keen to proceed with the monorail project.
NST 2008-04-28
He (LGE) said the project needed the cooperation and approval of the state government as it involved state land.
The RM1.2 billion monorail project is among mega projects under the Ninth Malaysia Plan that involves building a 51.2km track to complement the island’s public transportation network.
Subscribe to:
Posts (Atom)