Overseas Projects by Malaysian Developers

[nazrey]

Berjaya Land in US$2b Libyan foray
Published: 2008/09/16
BusinessTimes



The golf resort cum residential and commercial project in Tripoli will be modelled after Hyde Park and Regents Park in London and Central Park in New York

PROPERTY developer Berjaya Land Bhd (BLand) and Libya's Oyia Co for Development and Tourism Investment will jointly develop an integrated golf resort cum residential and commercial project in Tripoli, Libya at a cost of US$2 billion (RM6.8 billion).

The gross development value is still pending the finalisation of the master plan.

In a statement issued yesterday, BLand said its wholly-owned subsidiary, Berjaya Leisure (Cayman) Ltd (BCayman), yesterday entered into a joint venture with Oyia for the development of the project on three parcels of land measuring 412.67ha in Tripoli, Libya.

The signing ceremony was witnessed by Libyan Prime Minister Dr Bagdadi Al-Mahmoodi.

A joint venture company called Berjaya Oyia Development Ltd will be established to undertake the development of the project with an initial share capital of 10 million Libyan dinar (RM27.5 million).

BCayman will have a 60 per cent stake in the joint venture and Oyia will hold the remaining 40 per cent.

BLand said the project will comprise high-end residential and commercial development including 3,640 units of mid-rise apartments, 120 golf villas, 300-room luxury hotel with serviced residences and luxury villas and another 300-room business class hotel.

It will also feature a commercial facility with a shopping mall, a medical centre, two international schools and a 145ha public park.

Anchoring the project will be an 18-hole signature golf course and clubhouse, which will be designed by a world renowned golf course architect.

The project will be developed in phases over a period of seven to 10 years and the Libyan government has agreed to bear the infrastructure costs such as gas, electricity and water supply, telecommunications, sewerage and a highway interchange to facilitate access to the project site.

"The project will be modelled after world-renowned parks such as Hyde Park and Regents Park in London and Central Park in New York," said Tan Sri Vincent Tan, chairman and chief executive officer of Berjaya Corp Bhd, the holding company of BLand.

"The expected surge of foreign investments in Libya will create a demand for quality properties and services. This augurs well for Berjaya as well as the project. Berjaya, with its vast experience and expertise in property development, is committed in ensuring the success of the project," he added.

[pedang]

BLand gets RM6.8bil project


Project’s infrastructure costs would be funded by the Libyan government

PETALING JAYA: Berjaya Land Bhd (BLand) has teamed up with Libya’s OYIA Company for Development and Tourism Investment to set up a joint-venture (JV) company for a proposed US$2bil (RM6.8bil) property project in Tripoli.

BLand said in a statement to Bursa Malaysia yesterday that the initial paid-up of the JV company would be RM27.5mil.

BLand’s unit Berjaya Leisure (Cayman) Ltd (BLCayman) would hold a 60% stake and invest RM16.5mil. OYIA, which would own the remaining 40%, would invest RM11mil. The land, which is owned by OYIA, would be leased to the JV for 99 years. The total land area to be developed had been revised from 345ha to 412.67ha.

The proposed project included an integrated golf resort with 18-hole golf course and a clubhouse; about 3,640 units of mid-rise apartments; 120 golf villas and other residential accommodations.

Included in the project would be a 300-room luxury hotel with service suites and luxury villas, 300-room business class hotel, convention centre, medical centre, two international schools, a shopping mall and other retail components.

BLand said the Libyan government would finance infrastructure costs including utilities and a highway interchange.

It said the preliminary gross development costs for the proposed project was about US$2bil while the gross development value would be based on the master plan. The completion period was seven to 10 years.

[rizalhakim]

dis Berjaya Group really weird lah...so many new projects overseas but never care bout their local projects....

[rizalhakim]

Talam to exit PN17 next year
By LAW KAI CHOW


Its revamp plan will cut debts to RM400mil

KUALA LUMPUR: Talam Corp Bhd is aiming to get out of the financially troubled status of Practice Note 17 by January next year after shareholders approved its debt restructuring and turnaround plan yesterday.

The plan involves the issuance of Islamic debt securities, preference shares and loan stocks, and hiving off non-core assets.

Executive director Chua Kim Lan said the exercise would cut the group’s debts to about RM400mil from more than RM740mil currently.

“And with this revamp plan, Talam would be able to reduce its gearing ratio to 0.7 from 2.37 in the financial year ended Jan 31 (FY08). Paid up capital will be RM800mil,” she said after the company’s EGM yesterday.


“We (will) progressively divest our non-core investment businesses such as colleges, shopping centres and hotels. As long as the price is right we will sell the business for the purpose of working capital and loan reduction,” she said, adding that Talam was also looking into selling its commercial and industry land.

Talam has a landbank of about 4 thousand acres in Selangor, excluding joint venture (JV) land, located mainly in Puchong and Bukit Beruntung.

On the group’s stalled housing projects, Chua said almost all of the 10,000 previously abandoned housing units would be completed by end-2009 with an unbilled gross development value (GDV) of RM800mil. Last year, Talam awarded IJM Construction Sdn Bhd (IJMC) two contracts valued at RM700mil and RM125mil respectively to complete its abandoned housing projects.

Talam also has a JV with IJMC to develop a 35-storey residential and commercial project in Changchun, China.

“The project, which is now constructed up to eight-storeys, is expected to be launched in the third quarter of 2009. The GDV is about RM500mil,” she said, adding that Talam and its partners were looking for more integrated development projects in China.

[nazrey]

Goldis plans to build 'GTowers' overseas
By Sharen Kaur Published: 2008/09/17
BusinessTimes

GOLDIS Bhd plans to build more integrated buildings in Southeast Asia and China as it seeks to boost income.

These will be similar to its GTower building in Kuala Lumpur, a 30-storey building that has offices, a hotel and a club.

Goldis is already looking at a few locations in Singapore, Bangkok, Jakarta and Shanghai.

It is identifying strategic partners in each country to build four GTowers over the next 10 years, said Colin Ng, head of corporate investments.

"We are being opportunistic as the cycle for the property market is heading downwards. GTower integrates a hotel, office and club which will work well in urban areas," he said.

Ng was speaking to Business Times in Kuala Lumpur yesterday after Goldis' wholly-owned unit, GTower Sdn Bhd (GTSB) inked a deal with 3Com Corp for the deployment of 3Com intelligent building systems to power GTower's information communications technology (ICT) connectivity.

GTower is a 30-storey building at Jalan Tun Razak, Kuala Lumpur, encompassing a 180-room five-star boutique hotel, 112 CEO duplex office suites ranging in size from 2,500 sq ft to 7,200 sq ft and a club.

It is due to operate from April next year and will be retained for rental income.

GTower has attracted oil and gas majors, financial and IT firms, embassies and multinational companies as tenants.

GTSB is negotiating for a few contracts and hopes to sign a few long-term lease agreements soon.

GTower is Goldis' first Grade A++ project, which will be accorded MSC status by the end of this year, Ng said.

Grade A++ features two additional components than a Grade A property. It confers the property with green building status and means it is ICT ready with MSC specifications.

The building is the first carbon positive building in Malaysia, as it cuts carbon emissions.

GTSB is investing RM470 million in GTower and it hopes to recoup the investment in 10 years.

[nazrey]

Scomi Hopes For Final Decision On Mumbai Monorail Project This Year
September 17, 2008 15:16 PM

KUALA LUMPUR, Sept 17 (Bernama) - Scomi Engineering Bhd hopes to get the final decision on the RM1.01 billion monorail project in Mumbai within this year.

"We put in the bid two months ago and it is still under technical and commercial evaluation," its president, Hilmy Zaini told Bernama after a breaking of fast event hosted by the Scomi Group at the Bernama headquarters here on Tuesday.

Hilmy said this when asked about a news report stating that a consortium, comprising Scomi Engineering and its co-partner, Larsen & Toubro Ltd (L&T), is believed to be the successful bidder for the project.

"I hope the result of the bidding will be made known soon," he added.

The other bidder is Reliance Infrastructure, which has partnered Japanese firm Hitachi for the bid to construct the 20-km elevated monorail in India's financial capital.

The Times of India reported the Mumbai Metropolitan Region Development Authority (MMRDA) commissioner, Ratnakar Gaikwad, as saying that the deciding factor for the bid is the time frame to complete the project.

"The bid submitted by L&T and Scomi is more sound and promising compared to the one by Reliance Infrastructure and Hitachi," Gaikwad was also quoted as saying in the Times report.

According to Gaikwad, L&T and Scomi had promised to complete the project within 24 months. Reliance Infrastructure, helmed by Indian business tycoon Anil Ambani on the other hand, had indicated it needed over 50 months for the first phase of the mega project.

Seven companies had submitted initial bids for the project, which would be implemented on a build, operate and transfer basis.The MMRDA shortlisted L&T and Scomi as well as the Reliance Infrastructure/Hitachi partnership for final consideration.

The metro line would supplement the existing railway system and help the traffic-choked city of nearly 11 million people who use public transport for their daily travel.

Also attending the breaking of fast was Scomi Group chief executive officer, Shah Hakim Zain and Bernama's Economic Service deputy editor-in-chief, Salbiah Said.

-- BERNAMA

[nazrey]

Euro gets RM150m India contract
16-09-2008: THEEDGEDAILY

KUALA LUMPUR: Euro Holdings has secured a contract worth RM150 million to supply office furniture systems to One Office of India.

Euro's wholly owned subsidiary, Euro Space Industries (M) Sdn Bhd, will supply its full range of office furniture systems including workstations, seats, storage units and other peripherals to One Office.

"One Office will exclusively carry only the Euro brand of office furniture systems," Euro said in a statement to Bursa Malaysia yesterday. The five-year contract will be automatically extended for another year upon its expiry.

One Office is an affiliate company of Seating World, which collaborates with the Euro Group of companies for the marketing, distribution and supply of office furniture in India since 2000.

One Office focuses on securing and managing office furniture projects in India.

[rizalhakim]

Scomi eyes Mumbai monorail bid decision by year-end
Published: 2008/09/18


SCOMI Engineering Bhd hopes to get the final decision on the RM1.01 billion monorail project in Mumbai, India, within this year.

"We put in the bid two months ago and it is still under technical and commercial evaluation," president Hilmy Zaini said after a breaking of fast event hosted by the Scomi group at the Bernama headquarters in Kuala Lumpur on Tuesday.

Hilmy said this when asked about a news report stating that a consortium, comprising Scomi Engineering and its co-partner, Larsen & Toubro Ltd (L&T), is believed to be the successful bidder for the project.

"I hope the result of the bidding will be made known soon," he added.



The other bidder is Reliance Infrastructure, which has partnered Japanese firm Hitachi for the bid to construct the 20-km elevated monorail in India's financial capital.

The Times of India reported the Mumbai Metropolitan Region Development Authority (MMRDA) commissioner, Ratnakar Gaikwad, as saying that the deciding factor for the bid is the time frame to complete the project.

"The bid submitted by L&T and Scomi is more sound and promising compared to the one by Reliance Infrastructure and Hitachi," Gaikwad was also quoted as saying in the Times report.

According to Gaikwad, L&T and Scomi had promised to complete the project within 24 months. Reliance Infrastructure, helmed by Indian business tycoon Anil Ambani, on the other hand, had indicated it needed over 50 months for the first phase of the mega project.

Seven companies had submitted initial bids for the project, which will be implemented on a build, operate and transfer basis.The MMRDA shortlisted L&T and Scomi as well as the Reliance Infrastructure/Hitachi partnership for final consideration. - Bernama

[nazrey]

Berjaya Corp in venture to build Hanoi specialist hospital
By Zuraimi Abdullah Published: 2008/09/19
BusinessTimes



The potential venture will mark Berjaya Corp's return to the hospital business, although it will indirectly operate one soon, via 27.41 per cent-owned TMC Life

BERJAYA Corp Bhd plans to build a specialist hospital in Hanoi together with its associated company TMC Life Sciences Bhd and a local Vietnam construction firm.

Spending on the 300 to 500-bed hospital may range from US$50 million (RM172.5 million) to US$100 million (RM345 million), executives of the companies said.

The plan, however, depends on a feasibility study that could stretch to one year, they said. Construction itself should take another two to three years and several phases before full completion.

"The feasibility study is expected to start next month," TMC managing director Dr Colin Lee said after the signing of a Memorandum of Understanding for the project in Kuala Lumpur yesterday.

Under the pact, BCorp is to own half of a possible joint venture company with a capital of US$30 million (RM103.5 million). TMC and Viet Ha Corp will hold 30 per cent and 20 per cent respectively.

The potential venture will mark BCorp's return to the hospital business, although it will indirectly operate one soon via 27.41 per cent-owned TMC.

BCorp used to own Pantai Holdings but sold its stake in the owner of the Pantai Medical Centre chain about 10 years ago.

TMC is poised to open Tropicana Medical Centre in Kota Damansara by the year-end. It will have 52 specialist clinics and 180 in-patient and day-care beds.

"There is an increase in demand for quality healthcare and medical services in line with the higher standard of living in Vietnam," BCorp chairman and chief executive officer Tan Sri Vincent Tan said in a statement.

"The increase in demand would be significant with Vietnam's large population base of 86 million," Tan added.

BCorp already has various ongoing projects in Vietnam. Through Berjaya Land Bhd, BCorp had received the nod to undertake four property projects there valued at over RM30 billion.

Dr Lee is also bullish about the joint venture's prospect, despite the current uncertainties in the global economy.

"Vietnam is regarded as one of the emerging economies in the region, with gross domestic product growth of 6.5 per cent in the first half, in addition to the rising income level," he said.

[nazrey]

Berjaya again!

[nazrey]

TRC closer to winning Brunei refinery job
Published: 2008/09/20
BusinessTimes

TRC Synergy Bhd, a public-listed construction company, inched closer to securing the US$3 billion (RM10 billion) oil refinery project in Pulau Muara Besar, Brunei, after receiving approval from the government to proceed with a detailed feasibility study.

In a statement yesterday, TRC said it had completed its first phase economic feasibility study on the viability of constructing and operating a crude oil storage and refinery facility in Pulau Muara Besar, with positive results.

Its executive chairman Datuk Seri Sufri Mohd Zin said the company was pleased with the findings, which indicated the viability of an oil refinery in Brunei with processing capacity of 200,000 barrels of oil a day.

"Through our joint-venture partner PetroBru (B) Sdn Bhd, TRC received an official approval letter from the Brunei government to proceed with further works towards realisation of the oil refinery project," he said.

Sufri said the study included analysis of potential markets for downstream oil and gas products.

"We will now proceed with the detailed feasibility study, which will take about six months. I believe the results will be positive as well."

TRC anticipates construction of the refinery to start in the first half of 2010.

"The potential oil refinery in Brunei has attracted interest from oil majors such as Kuwait Petroleum International. We are in talks to see how we can further maximise the potential of the oil and gas industry in Brunei," Sufri said.

TRC, which has invested some RM2.5 million in Brunei, will hire Wood Mackenzie as consultant for the detailed feasibility study.

On its construction division, TRC said the order book is currently RM1.5 billion, which will last it until 2011.

Its ongoing projects include the construction of Bentong Prison in Pahang, runway extension of the Kuala Terengganu Airport and the Sapangar Bay Submarine Base in Sabah.

[rizalhakim]

Tabung Haji to build RM910m hotel in Mecca



COME 2011, Tabung Haji will have a 30-storey hotel close to the holy mosque in Mecca costing one billion riyal (RM910.7 million) to cater for the ever increasing number of haj pilgrims annually. [/b][/u]

Minister in the Prime Minister's Department Datuk Seri Zahid Hamidi, who revealed this yesterday, said the 1,650-room hotel project, capable of taking 18,000 pilgrims, had received approval from Saudi Arabian authorities recently.

"We are in the midst of finalising details of the project located about 200 metres from Masjidil Haram. This is Tabung Haji's landmark hotel venture for the benefit and convenience of Malaysian pilgrims."

Speaking after launching the Saudi-chapter of the Malaysia-Saudi Friendship Society on behalf of Deputy Prime Minister Datuk Seri Najib Razak, Zahid said the project involved 650 million riyal for land cost and 350 million riyal for construction works.

He said the land for the project was leased from the Saudi government for up to 35 years because foreigners were not allowed to own land. Tabung Haji expects returns from the venture after six years in operation.

According to Zahid, the hotel project would greatly ease the problem of accommodation faced by the agency as it was capable of accommodating about 50 per cent of pilgrims performing the haj annually.

Zahid said Tabung Haji had agreed to increase the special package haj pilgrimage undertaken by private agencies to 30 per cent from the usual 20 per cent due to strong demands. The cost for a special package ranges between 13,000 riyal and 98,000 riyal per person.

The cost for a normal package managed by Tabung Haji is 12,400 riyal, inclusive of 2,600 riyal subsidised by the organisation.

He said a total of 38 private agencies had been given approval by Tabung Haji to undertake the special package pilgrimage.

The special package involves high-cost accommodation, usually hotels located very close to the holy mosque in Mecca.

[nazrey]

Sunway bags RM1.8b deal
Published: 2008/09/24
BusinessTimes



The Abu Dhabi project is part the construction group's globalisation move that will boost Sunway Construction's order book to RM3.3 billion

SUNWAY Holdings Bhd has bagged a RM1.8 billion contract to build part of a mixed development project in Abu Dhabi in the United Arab Emirates (UAE).

The contract marks its second job in the Middle East as the group seeks to expand abroad. It has already carried out projects in Singapore, India and Trinidad and Tobago.

In recent years, Malaysian builders have been expanding overseas as large construction projects become scarce at home.

Sunway Holdings' latest project involves works at Rihan Heights, phase one of the Arzanah mixed use integrated development.

It will be carried out by the Silver Coast-Sunway Innopave joint venture.

The joint venture is a 60:40 partnership between Sunway Innopave Sdn Bhd and the Abu Dhabi-based Silver Coast Construction and Boring LLC.

Sunway Innopave is a subsidiary of Sunway Construction Sdn Bhd (SunCon), which in turn is wholly owned by Sunway Holdings.

The contract will boost SunCon's order book to about RM3.3 billion and keep the group busy for the next three years.

"This project represents another step in Sunway group's globalisation plans under which SunCon is expanding our business interests and construction expertise to more countries," SunCon senior managing director Datuk Tan Kia Loke said.

It will also pave the way to more jobs in Abu Dhabi in future.

The contract was awarded by Mubadala CapitaLand Real Estate LLC (Capitala).

Capitala is a joint-venture company between Mubadala, a business development and investment company in Abu Dhabi, and Singapore's CapitaLand.

Mubadala holds the majority 51 per cent stake in Capitala, with the balance held by CapitaLand.

Tan said the project, to be led by Sunway Innopave, is strategically located at the gateway on Abu Dhabi island and is part of the fully integrated, mixed use development surrounding Zayed Stadium.

"Our contract will involve the construction of five residential towers, a three-level podium, 14 townhouses, a clubhouse and 1,208 parking bays together with associated landscaping, external works and services," he said.

SunCon had first ventured into Abu Dhabi to build five towers on Al Reem Island under a group.

However, the Arzanah Development-Rihan Heights project is the first that the company is spearheading with a local partner.

Tan said the Abu Dhabi government is committed to non-oil economic diversification, which is expected to reach 60 per cent in 2013, through investments and projects in the agriculture, industry, real estate and service sectors.

"This provides excellent opportunities for SunCon to further build our brand reputation in the international construction market," he added.

Some 60 per cent of the RM3.3 billion order book is from overseas, and 40 per cent of it comes from jobs in the Middle East.

[nazrey]

WISMA MALAYSIA IN JAKARTA WILL BE READY BY FEB 2009
Bernama - Tuesday, September 23

JAKARTA, Sept 22 (Bernama) - Over 4,600 Malaysian students in Indonesia who are on transit in Jakarta will be able to enjoy affordable accommodation when the new Wisma Malaysia building is fully completed early next year.

Higher Education Minister, Datuk Seri Khaled Nordin said the reconstruction of the building which started on March this year had reached 31 per cent of completion.

Built on a 1,158 square metre site at Jalan HOS Cokroaminoto in Jakarta Central, the double-storey building would benefit Malaysian students who were on transit or on a temporary visit to Jakarta, he told Bernama after visiting the constructions site today.

Upon its completion, Wisma Malaysia will have a dormitory which can facilitate 50 students at a time, 150-capacity conference hall, a students association's office as well as a warden's office.

Meanwhile, Malaysian Ambassador to Indonesia Datuk Zainal Abidin Mohamed Zain who accompanied Khaled during the visit, reminded the contractor to complete the RM7.2 million project as scheduled.

He said apart from preserving Malaysia's good name in the eyes of the local community, the on-time completion of the building was also vital to prevent any legal problems with the authorities.

-- BERNAMA

[rizalhakim]

Higher earnings for Sunway Holdings


KUALA LUMPUR: Sunway Holdings Bhd’s earnings are expected to increase by between 4% and 8% for the financial years ending June 30, 2009 to 2011 (FY09-11) after it secured a RM1.8bil housing project in Abu Dhabi.

HwangDBS Vickers Research said on Wednesday it estimated earnings before interest and taxation (EBIT) of 8% for the project with EBIT contribution of RM88mil to be recognised over FY09-11.

On Tuesday, Sunway Holdings announced that its unit, Sunway Construction Sdn Bhd, had secured the RM1.8bil job in Abu Dhabi from Mubadala CapitaLand Real Estate LLC.

The project comprised of five residential towers, a three-level podium, 14 townhouses, a clubhouse and approximately 1,208 car park spaces for the proposed Arzanah Development–Rihan Heights building project.

Sunway Holdings holds a 60% stake in this project with an effective RM1.1bil share of work. The JV partner is a local company, Silver Coast Construction and Boring LLC. The project will start in November and the construction period is 25 months.

HwangDBS Vickers Research said the new contract would enhance Sunway Holdings’ construction order book to RM3.2bil.

The research house said it believed the project risk was low as one-third of steel bars required would be procured by the client -- a 51:49 JV between Mubadala (100% owned by UAE government) and Capitaland.

It added Sunway Holdings’ management also indicated the tender price was based on high commodity prices in July with little risk of further cost escalation.

“We continue to favour Sunway for its attractive valuation at FY09-10 price-to-earnings (PE) ratios of 3.0 times and FY08-10 earnings per share (EPS) compounded annual growth rate (CAGR) of 16%, supported by stronger contributions from construction, quarry and property divisions.

“Maintain Buy with upgraded sum-of-parts derived target price of RM1.10 per share from RM1.05 previously after factoring in the increased construction contribution from this new Abu Dhabi project,” it said.

[rizalhakim]

SunCon wins RM1.8bil Abu Dhabi housing job


The Rihan Heights project will boost order book to RM3.3bil

KUALA LUMPUR: Sunway Holdings Bhd’s unit Sunway Construction Sdn Bhd (SunCon) has been awarded a RM1.8bil contract for construction works at the Rihan Heights in the United Arab Emirates.

The mixed housing project is located in Arzanah, Abu Dhabi.

SunCon senior managing director Datuk Tan Kia Loke said the latest contract would boost SunCon’s order book to about RM3.3bil, of which more than 60% were from overseas.

“This would keep the group busy for the next three years,” he said, adding that with the current order book, Suncon expected to make bigger contributions to the Sunway group next year.


From left: Silver Coast Construction MD Shaher Awartani, Capitala acting CEO Heang Fine Wong and Sunway Construction Sdn Bhd MD Kwan Foh Kwai at the signing ceremony.

Tan said SunCon had also undertaken projects in Singapore, India and Trinidad and Tobago.

As at financial year ended June 30, 2008, the company contributed 55% to group pre-tax profit.

SunCon also plans to bid for more projects through joint ventures (JV) in Abu Dhabi.

“We are focusing on overseas (markets) and will continue to bid for more jobs,” he said.

On the Arzanah project, Tan said SunCon’s contract involved the construction of five residential towers, a three-level podium, 14 townhouses, a clubhouse and 1,208 car parking lots “together with associated landscaping, external works and services”.

He said SunCon first entered Abu Dhabi to undertake the construction of five towers at the Al Reem Island under a consortium.

In a filing with Bursa Malaysia yesterday, Sunway Holdings said Suncon’s wholly-owned unit Sunway Innopave Sdn Bhd had jointly formed Silver Coast-Sunway Innopave with Abu Dhabi-based Silver Coast Construction and Boring LLC to carry out the Rihan Heights project.

Sunway Innopave holds a 60% stake in the JV company.

The job was awarded by Mubadala CapitaLand Real Estate LLC, a JV between Mubadala and CapitaLand.

Mubadala is a leading business development and investment company in Abu Dhabi while CapitaLand is one of Asia’s largest real estate firms.

[rizalhakim]

http://www.arzanah.ae/

dis project dem big dude!!!

[nazrey]

MTD: Cost of Jakarta toll road to top RM1b
By Sharen Kaur Published: 2008/09/26
BusinessTimes

The construction and toll road operator had earlier allocated RM858 million for the Cibitung-Cilincing toll road, but the new budget 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.

[nazrey]

New Delhi invites firms here to bid for infrastructure jobs
Published: 2008/09/26
BusinessTimes

MALAYSIAN construction companies have been invited to bid for infrastructure jobs in India, which plans to spend at least US$500 billion (RM1.7 trillion) over the next five years.

"I understand India is now one of the largest overseas destinations for Malaysian companies, which have about US$5 billion (RM17 billion) worth of Indian infrastructure projects," India's Commerce and Industry Minister Kamal Nath said.

His speech was read by India's High Commissioner to Malaysia, Ashok Kantha, at the second Malaysia-India Economic Conference (MIEC) 2008 in Kuala Lumpur yesterday.

Nath noted that bilateral trade between Malaysia and India had increased significantly since the first MIEC held last year.

"Malaysia is one of the leading trading partners of India in the Asean region. Annual two-way trade, which has been growing at an average of 30 per cent for the past few years, crossed US$8 billion (RM27 billion) in 2007.

"Based on current trends, the bilateral trade is expected to touch the US$10 billion (RM34 billion) mark by end-2008, two years ahead of the projected target," he said.

Investments from both countries are increasing in quantity as well as diversity, Nath added.

"Malaysian companies are showing keen interest in investing in telecommunications, power, petroleum and other sectors in India.

"Increasingly, Indian companies are looking at Malaysia as an investment destination, as evident from investments of about US$1 billion (RM3.43 billion) last year."

[nazrey]

Malaysia top foreign investor in Vietnam
Published: 2008/09/27
BusinessTimes

HANOI: Pledged foreign direct investment into Vietnam in the first nine months has reached US$57.12 billion (US$1 = RM3.43), jumping more than fourfold from the same period last year, government officials and state media said yesterday.

As of September 22, some 885 new projects have been licensed with a total investment of US$57.12 billion up more than 450 per cent from the same period last year, said Nguyen Viet Cuong, an official with Vietnam Ministry of Planning and Investment.

Malaysia has topped the list of investment by country origin, with US$14.8 billion being invested in Vietnam so far this year. The figure was largely contributed by the US$9.79 billion project being licensed in September.

Taiwan came second in the list of investors US$8.6 billion, followed by Japan with US$7.2 billion. - AP