Malaysia's Infrastructure and Utilities

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US: Malaysia ready for nuclear energy
By Zaidi Isham Ismail, Published: 2008/08/05, BusinessTimes



MALAYSIA is well-positioned to embrace nuclear energy to power up its homes and industries due to its good power infrastructure, robust economy and strong leadership attributes in the region.

US Department of Energy deputy assistant secretary Edward McGinnis said the US recognises Malaysia as a regional leader in the research and development of advanced alternative energy, including nuclear.

"The US regards Malaysia as a partner in promoting peaceful and safe uses of technology including nuclear energy.

"We are in the process of extending an invitation to the Prime Minister (Datuk Seri Abdullah Ahmad Badawi) to join the Global Nuclear Energy Partnership (GNEP) at its next meeting in October in Paris, France," McGinnis told Business Times in Kuala Lumpur recently.

GNEP is an organisation of 21 countries, three permanent international non-government observers (comprising the International Atomic Energy Agency, Generation IV International Forum and Euratom) and 17 participating observer countries.

All members share a common vision of advancing new technologies to make possible the expansion of safe, clean nuclear energy to help meet growing global energy demand in a safe and secure manner.

Members include all the nuclear majors such as the US, France, Russia and the UK as well as other partners like Senegal, Jordan, South Korea, Ghana and potential candidates and observer countries such as Argentina, Brazil, Egypt, Libya, Turkey, South Africa, Sweden, Morocco and Finland.

Partner nations also aim to improve the environment through effective nuclear waste or spent fuel disposal and reduce the risk of nuclear proliferation.

"Asia already has Japan, Australia and China as partners and we are also in the process of extending our invitation to Thailand, the Philippines and Indonesia," said McGinnis.

He said GNEP provides member countries and new potential members the opportunity to exchange ideas and discuss possible collaboration in furthering Malaysia's interest in using nuclear energy after 2020.

"If Malaysia chooses to join the partnership, other member countries will offer expertise, skills, knowledge and financing mechanism.

"Admittedly nuclear energy requires significant investment upfront, but it will become profitable and economically viable in the long term due to reactor reliability. It is also a source of clean energy," he added.

McGinnis however said nuclear energy is not to replace other energy sources but to complement them such as hydro, solar, gas, wind, and spent fuel will be disposed of in a safe manner.

Member countries participating in GNEP voluntarily engage to share efforts and gain the benefits for economical and peaceful nuclear energy.

Cooperation among member countries will be carried out under existing and new bilateral agreements as well as existing multilateral arrangements.

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MMC in RM2b deal
By Presenna Nambiar, Published: 2008/08/05
BusinessTimes



The purchase of Aliran Ihsan Resources will make the group an integrated global water and power producer while the addition of Senai Airport will complete MMC's logistics portfolio

INFRASTRUCTURE group MMC Corp Bhd announced yesterday a RM2.2 billion deal that, in one stroke, will strengthen both its logistics and international utilities businesses.

It will buy Senai airport manager Senai Airport Terminal Services Sdn Bhd (SATS) via an all-share deal worth RM1.95 billion as well as make a general offer worth about RM240 million in cash and loan stocks to completely control Johor-based water treatment plant operator, Aliran Ihsan Resources Bhd (AIRB).

The deal is a related party transaction given that substantial shareholders of both SATS and AIRB are persons connected to MMC's major indirect shareholder, Tan Sri Syed Mokhtar Shah Syed Nor.

MMC will issue 696.4 million new shares at an issue price of RM2.80 per share to pay for SATS.

The diversified group said the RM1.95 billion price tag for SATS was in consideration of SATS' 1,087.2ha of freehold land, which is valued at RM2.2 billion by IPC Island Property Consultants Sdn Bhd.

On top of the share swap, MMC will also advance RM417.2 million to Enigma Harmoni Sdn Bhd, a subsidiary of SATS, to repay advances to SATS given by Semarak Restu Sdn Bhd, a majority shareholder.

MMC will borrow to pay for AIRB shares and redeemable cumulative unsecured loan stocks.

MMC plans to maintain AIRB's listing status after the acquisition.

"These acquisitions are a strategic fit for MMC as they provide us with a competitive advantage in the utilities and infrastructure businesses," MMC's Malaysia chief executive officer Hasni Harun said.

He said AIRB will complement the group's global power generation business, particularly in the MENA (Middle East and North Africa) region where power project bidders are invariably required to provide water solution proposals in their bids.

"The acquisitions will enable us to be an integrated water and power producer in the global arena and allow us to compete more effectively in these fast-growing markets," Hasni added.

On its acquisition of SATS, Hasni said the addition will complete MMC's logistics portfolio covering air, sea and land transportation businesses.

The acquisition of SATS will also enable MMC to offer multimodal connectivity through southern Johor, an area that stands to benefit from the development of Iskandar Malaysia

"With a comprehensive air, sea and land transportation system, we are optimistic that the region will become more attractive to international investors," Hasni said.

MMC has interests in the Port of Tanjung Pelepas and Johor Port as well as JP Logistics Sdn Bhd, a container haulage company.

The move is in line with MMC's plan to develop an integrated regional cargo and logistics hub in Johor.

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Malacca CIQ and airport expansion hit by rising costs
Thursday July 24, 2008, TheStar



Awaiting funds: The CIQ project (left), part of the Malacca River
Beautification project, is a victim to rising material costs.

MALACCA: Two high-impact Federal Government projects here worth RM173mil have hit a snag owing to the recent increase in construction costs.

Contractors of the RM42mil Customs, Immigration and Quarantine (CIQ) complex to be built across the Malacca River have warned the state that the project may be delayed or halted due to the unexpected cost hikes.

Chief Minister Datuk Seri Mohd Ali Rustam confirmed that the project was halted recently.

“The contractors are unable to carry on as the profit margin is small due to the rise in cost of materials such as steel.

“I hope the Federal Government will do something to enable the contractors to overcome the problem and ensure high-impact projects are completed,” he told reporters after attending a briefing on board the ss Lili Marleen here recently.

He said the project was vital for the state’s tourism sector, especially with Malacca’s declaration as a World Heritage Site.

“Immediately after the declaration, hotels here reported room occupancy of 69% even during off-peak days,” he said.

Work on the CIQ, part of the RM320mil Malacca River beautification and rehabilitation project, started in February 2007 and was scheduled for completion in April 2008.

It is aimed at upgrading Customs and Immigration services to cater to the increasing number of arrivals, which stands at about 200,000 a year.

At present, only 17% of the project is completed.

Another project, which has hit a snag, is the Batu Berendam Airport expansion under the Transport Ministry.

The RM131mil project, aimed at extending the airport’s runway to 1,880m to take in Boeing 737-400 and Airbus A320 aircraft, is scheduled for completion by April 2009.

However, owing to an oversight, it was realised that only half-loaded Boeing 737-400 and Airbus A320 could use the runway as fully-loaded planes would require a 2,200m runway.

The state recently requested additional funds to construct the additional 400m.

The upgraded Batu Berendam Airport is crucial for the state’s growing tourism industry, especially for the expected increase in medical tourists.

The state received 64,000 medical tourists, mostly Indonesians, last year and is ahead of Penang, Federal Territory, Selangor and Johor.

Mohd Ali said the state had forwarded an appeal to the Federal Government on the matter.

“These are federal projects and the state leaves it to the Government to handle them,” he said.

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Customs, Immigration and Quarantine (CIQ) complex
built across the Malacca River (NEW)
Facing to Malacca Strait

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DPMM Expresses Interest In Gemas-Johor Baharu Double Track Railway Project
August 06, 2008 16:46 PM

KUALA LUMPUR, Aug 6 (Bernama) -- Dewan Perniagaan Melayu Malaysia (DPMM) has expressed its interest to be the main contractor for the Gemas-Johor Baharu double-tracking railway project.

DPMM president Syed Ali Alattas said the project worth RM9 billion is expected to be opened for tenders soon by the government.

Master Vendor Corporation Sdn Bhd, which is a subsidiary of Yayasan DPMM, will be responsible for dividing the government's project by appointing contractors, professionals and Malay entrepreneurs capable of handling the work.

"We believe that we have the capability and capacity to handle the project with 200,000 members, out of whom 30,000 are registered contractors," he said at a media briefing here Wednesday.

To this end, Master Vendor has signed a memorandum of understanding (MoU) with China Railway Construction Corporation Ltd in April this year to assist in the development of the railway project.

The two parties have agreed to form a consortium to undertake the project.

"They have agreed to support with the training of contractors as well as to finance it," Syed Ali said.

Under the MoU, China Railway will assist in providing the supply of railway materials, construction materials, expertise as well as helping Master Vendor to liaise with China's Eximbank to obtain financing facilities where necessary.

China Railway is one of the largest and most powerful mega-size multiple construction corporations as well as the largest project contractor in China.

Its businesses comprise construction project contracting, survey, design and consultation, industrial manufacturing, exploitation of real estate, capital operation and logistics.

It was reported in June that the government may call for tenders for the Gemas-Johor Baharu railway project by year-end.

The project involves building over 200 kilometres of parallel railway tracks, including stations, depots, halts, yards and bridges.

-- BERNAMA

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Longer Landing Strip At LTBB To Accommodate Boeing 737 And Airbus 320
August 06, 2008 18:51 PM

MELAKA, Aug 6 (Bernama) -- The Melaka State Assembly was told today that the landing strip at the Batu Berendam Airport (LTBB) would be extended to allow landing by Boeing 737 and Airbus 320.

Chief Minister Datuk Seri Mohd Ali Rustam said the extension of the landing strip, which length would be 1,800 metres from 1,350 metres previously, was part of the LTBB (Lapangan Terbang Batu Berendam) expansion project, costing RM131.5 million, which began in April 2007 and scheduled for completion in April next year.

He said the project was aimed at improving facilities for health tourists.

"There has been a sharp increase in health tourist arrivals, from 18,295 people in 2004 to 67,201 last year, which is an increase of 367 percent," he said in response to a question by Datuk Abdul Wahab Abdul Latip (BN-Durian Tunggal)today.

Mohd Ali said the state government had held discussions with several airlines, including Airasia, Firefly and a company from China, to make LTBB as hub for cargo and passenger flights for the southern region.

"Apart from that, Sun Power, a company which has invested RM2.2 billion in Melaka, is negotiating with Malaysia Airport Sdn Bhd for a cargo flight," he added.

On the drop in number of passengers to land at LTBB, from 44,275 in 2004 to 26,218 last year, Mohd Ali said this was because only the Riau Airlines continued to operate its Pekan Baru-Melaka-Pekan Baru flight after 2006 compared with three airlines in 2004.

Berjaya Air ceased its Subang-Melaka-Pekan Baru-Melaka-Subang flight at the LTBB in February 2006, while the Merpati Nusantara Airlines ceased its operations at the airport in April 2005.

To a supplementary question from Khoo Poay Tiong (DAP-Ayer Keroh), Mohd Ali said the state government had submitted an application to the federal government to extend the landing strip at LTBB by another 400 metres to 2,200 metres for full load landing by a Boeing 737.

On a suggestion by Betty Chew Gek Cheng (DAP-Kota Laksamana), Mohd Ali said he agreed with her that Melaka and Penang which had been accorded a World Heritage City status to collaborate in the promotion of both cities.

Meanwhile, State Tourism, Culture and Heritage Committee Chairman Datuk Seet Har Cheow said 3.246 million domestic and foreign tourists visited Melaka during the first six months of this year.

"This is an increase of 17.3 percent in tourist arrivals in the state over the same period last year," he said in response to a question from Latipah Omar (BN-Taboh Naning).

-- BERNAMA

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RM410m expansion plan for Kulim Hi-Tech Park
By Marina Emmanuel, Published: 2008/08/07, BusinessTimes

AN INTERNATIONAL school, two hotels, medical facilities for chemical-related injuries and a dedicated police station are among the amenities being planned under the fourth phase of the Kulim Hi-Tech Park in Kedah.

Kulim Technology Park Corp (KTPC) group chief executive officer Datuk Ahmad Shukri Tajuddin said the federal government had earlier this year allocated RM145 million for the fourth phase of the science park, which covers 156ha.

"A fifth phase covering 422ha was also announced with a RM265 million allocation," he told Business Times.

Ahmad Shukri said the park's third phase - which covers 172ha - can accommodate another five new tenants and then it will be full.

He said the ELC International School is scheduled to begin in September and teachers and staff are currently being shortlisted.

"Construction work on a two-to three-star category hotel, boasting 100 rooms, is expected to take off by the end of this year with development costs tagged at RM40 million," Ahmad Shukri said, adding the proposed hotel project will be carried out by Alor Star-based property developer MBAS Jaya Sdn Bhd.

The proposed hotel will take around one-and-a-half years to be completed.

Also on the drawing board is a 200-room new hotel.

Meanwhile, a RM5 million two-storey hostel is also being planned in Phase 4 of the park.

The 31-bedroom hostel, for which construction will begin by the end of this year, will be managed by KTPC, which oversees the management of the park.

Ahmad Shukri also said that plans are afoot to meet the human resource needs of the park's tenants.

"A more concerted skills development centre at the park is being worked out with the cooperation of the Northern Corridor Implementation Agency and the Kedah Industrial Skills and Management Development Centre," he added.

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Penang airport out-of-date, says Lim
by Regina William, 07 Aug 2008 10:56 AM, THEDGEDAILY

PENANG: The Penang state government has called on the transport ministry to compel Malaysia Airports Holdings Bhd (MAHB) to hasten the upgrading works at the Penang International Airport.

Chief Minister Lim Guan Eng said the dilapidated condition of the airport, especially the washrooms, left much to be desired.

“The last time the airport was renovated was in 2001 at a cost of RM39.7 million. There is an urgent need to upgrade the (squatting) toilets which are not favoured, especially by Westerners and this does not augur well for an international airport.

“At least 60 toilets which are tourist friendly were supposed to have been built but have yet to be implemented,” Lim said in a statement yesterday.

He said Transport Minister Datuk Ong Tee Keat, in reply to his written question, had said the upgrading works were in the process of being carried out. Lim said the tenders were supposed to have been called for last month.

“Being an international airport and the focal point of many tourists arriving into the country, this airport should have facilities of the same standards as the KLIA.

“We do not want the state’s image to be marred by filthy and out-of-date toilets, and we hope the ministry will carry out the necessary upgrading works as soon as possible,” he added.

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Scomi Expects To Complete New Centre By Year End
August 07, 2008 21:28 PM

RAWANG, Aug 7 (Bernama) -- Scomi Engineering Bhd subsidiary, Scomi Rail Bhd expects to complete its new RM30 million technology and manufacturing centre (STMC) in Rawang by end of this year.

Scomi group chairman, Tan Sri Asmat Kamaludin said the 150,000 sq ft is designed to manufacture both monorail and conventional steel wheel rail vehichles such as the electrical multiple unit (EMU), locomotive and rail wagon.

He said the facility which will comprise a 12-station monorail and 16-station EMU rail can assembly lines will provide Scomi the capability to produce a carbody every five to seven days in a single shift.

"This is in line with Scomi's goal to become an integrated monorail systems provider offering full range services include design, fabrication and integration of monorail rolling stocks and related electrical and mechanical (E&M) systems," he said.

"The EMU assembly line can be doubled up as a secondary monorail line for future expansion," he said after the ground breaking ceremony here today.

He said that the facility with its 1-km test track will also house research and development centre for all its logistics engineering activities.

Transport Minister, Datuk Ong Tee Keat officiated the ground breaking ceremony.

At the event, Ong also welcomed the move by Scomi to enhance its efficiency, saying it was in line with the government's efforts to improve public transportation in the country.

"Public transportation has overnight become a solution to many road users following the rise in the price of petrol," he said.

"For monorail alone, we have seen the average passenger rate going up to 61,937 a day after the rise in petrol price from 61,302 before the price rise.

"As for RapidKL bus, there has been a 7.5 percent rise in the number of daily passengers from 365,111 previously to 392,654 now," Ong said.

He said the new centre will also help create more job opportunities in the Rawang area and bring more vendors from the small and medium industries of the sector to the area.

On another note, Ong said his ministry was also looking at the prospect of of refurbishing old EMUs.

"We are assessing the condition of the old units and the parties that would be appointed to refurbish the old rail units," he said.

The government is looking at the cost and is expected to finalise the evaluation by end of this year, he added.

-- BERNAMA

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Bigger facility to spur Scomi monorail ambition
By Azlan Abu Bakar Published: 2008/08/08, BusinessTimes



SCOMI Rail Bhd, a wholly-owned subsidiary of Scomi Engineering Bhd, has allocated investments worth RM30 million to enhance its position as a leading regional logistics engineering player.

The group hopes to realise the ambition with the expansion of its Technology and Manufacturing Centre (STMC) in Rawang, Selangor.

Group chairman Tan Sri Asmat Kamaludin said the centre will help Scomi become an integrated monorail system provider offering a full range of services which include design, fabrication and integration of monorail rolling stock and related electrical and mechanical system.

"STMC, with a present build-up area of 125,000 sq ft, will be expanded to 150,000 sq ft and be fitted with high precision equipment and complete with a one km test track," he told reporters after the groundbreaking ceremony yesterday.

Asmat said once completed by end of 2008, the new facility will comprise a 12-station monorail and 16-station electrical multiple unit railcar assembly line.

Officiating at the groundbreaking ceremony was Transport Minister Datuk Ong Tee Keat. Also present was Scomi Engineering president Hilmy Zaini.

The facility in Rawang currently produces the Scomi Urban Transportation Rail Application (Sutra), buses, special-purpose vehicles such as aircraft refueler, hydrant refueler, petroleum tanks and compactors for domestic as well as for export markets.

Scomi is optimistic of securing monorail jobs in India and Vietnam soon.

"Proposals for the monorail projects in Mumbai and Hanoi are now in the advanced stages and we hope to firm up the deals soon," said Hilmy.

Apart from Mumbai and Hanoi, he said, the company is also looking to bid for monorail projects in the Middle East, Africa and several cities in India.

"All of the proposals are in different stages but we are close to getting the two (Mumbai and Hanoi) soon," he said.

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SkyPark to bring new life to Subang airport
By Presenna Nambiar Published: 2008/08/07, BusinessTimes



SKYPARK FBO Malaysia Sdn Bhd, a newly set up fixed base operator (FBO) at the Subang airport, expects to chart RM3 million to RM5 million in revenue in its first year of operation.

The company, which is part of the RM350 million redevelopment plan for Subang airport, is the result of a joint venture between Switzerland-based ExecuJet Aviation Group and Australia's Hawker Pacific.

It offers services for private and corporate aircraft such as fuelling, repairs, parking, tie-down and hangar storage.

"The introduction of Swiss VistaJet Holding SA's charter services and the establishment of the SkyPark FBO (in Malaysia) takes us further forward in our journey towards setting up the region's first general and corporate aviation hub with world-class standard of products, services, facilities and amenities," Deputy Prime Minister Datuk Seri Najib Razak said at the launch of SkyPark FBO in Subang yesterday.

He said it is the aim of the government to develop the Malaysia International Aerospace Centre into a pulsating and thriving centre of private aviation, the largest and finest in Asean, if not Asia.

VistaJet is SkyPark FBO's first customer to offer private jet charter services with an initial commitment of two dedicated aircraft in Subang.

There are plans to bring in another aircraft in 2009.

"Subang has been quiet for the last 10 years and we plan to put it back on the world map," Subang SkyPark Sdn Bhd executive director Datuk Ravindran Menon said.

He said the first phase of the redevelopment of Subang Airport is almost complete with the launch of SkyPark FBO and the RM35 million refurbishment of Terminal 3 which will be completed in October this year.

Work on Phase 2 of the three-part redevelopment of the terminal is to start next month. It will entail the creation of a regional aviation centre with maintenance, repair and overhaul (MRO) facilities, a dedicated hangar and corporate aviation-related industries.

"The FBO operations will be a significant investment for both Hawker Pacific and ExecuJet, but it will be the investment that is put into the development of the MRO facility that would be enormous," Hawker Pacific chief executive officer Alan Smith said.

He said a typical maintenance facility would involve between US$5 million and US$10 million (RM16.4 million and RM32.8 million) in investments, without taking into account the investment in training.

Hawker Pacific and ExecuJet plan to individually operate MRO hangars in their own products and services, with aircraft parking services.

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KTMB ordered to upgrade rolling stocks to boost capacity
Friday August 8, 2008, TheStar

RAWANG: In efforts to boost KTMB’s capacity, Transport Minister Datuk Ong Tee Keat has ordered the company to refurbish old and abandoned electrical multiple unit rail cars.

Refurbishing rolling stock is a faster and cheaper way to meet the demand from the increasing number of passengers, he explained.

“If we were to order new trains, it would take more than two years,” he said.

Refurbishing rolling stock did not mean a “cut and paste” job.

Ong stressed and added: “It involves the latest technology. It is not just repairing, that is why I do not want to use the word ‘repairing’.”

Ong said his ministry and KTMB were doing an evaluation on the cost efficiency, delivery and other factors of the project.

“We hope to complete our analysis by the end of the year so we can start on the refurbishing work as soon as possible,” he told reporters after attending the ground breaking ceremony of Scomi’s technology and manufacturing centre here yesterday.

Meanwhile, Scomi Engineering president Hilmy Zaini said Scomi, which has refurbished 150 Rapid buses, would be keen on the KTMB rolling stock refurbishment project if given the opportunity.

Hilmy added that it would also bid for the expansion of the KL monorail and Putra light rail transit systems.

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Penang Airport needs urgent renovations
Fri, Aug 08, 2008, The New Straits Times

GEORGE TOWN, MALAYSIA: Chief Minister Lim Guan Eng is urging the Transport Ministry, through Malaysia Airports Holdings Bhd, to speed up renovation works at Penang International Airport.

Lim said the airport's deplorable state was compounded by washrooms in bad condition.

"This does not reflect the airport's status as an international airport. It is important for us to project a good image to visitors and tourists who come here.

"We do not want the state's image to be tarnished just because of this. We are worried that it will be a factor to a decrease in the number of local and foreign visitors coming here," he added.

Transport Minister Datuk Ong Tee Keat had earlier stated that the last time renovation works were carried out at the airport was on March 1, 2001, costing RM39.7 million.

They covered expansion works and renovation of the building's terminal.

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Kuching Airport Needs A LCCT
by Ozgur Tore ( Thursday, 07 August 2008 )
Source: Bernama

The Kuching International Airport needs a Low Cost Carrier Terminal (LCCT) in view of the increased number of passengers using AirAsia, an official with the airline said today. AirAsia Manager for Sabah, Sarawak and Brunei Shanmugam Nathan said the terminal such as that in the KL International Airport (KLIA) and Terminal 2 in Kota Kinabalu would serve not only AirAsia but also other current and future low cost airlines which will operate in the country.

It is not a want from AirAsia but more of what is needed in view of the increasing number of passengers, he told reporters here after presenting sponsored AirAsia tickets here for the National Conference of Secretaries to be held in Kuching, Kuala Lumpur and Kota Kinabalu end of this month and early May.

Shanmugam said in a day AirAsia offered 10 return flights for the Kuching- Kuala Lumpur route as well as three return flights for the Kuching-Johor Baharu route and one flight daily to Penang, Sibu, Miri and Bintulu.

AirAsia also launched direct flights to Macau, Jakarta and Bali from Kuching this month.

It also plans to fly the Kuching-Singapore route this year and the Kuching-Bandar Seri Begawan route this June.

Shanmugam said AirAsia hoped that the Sarawak state government would consider establishing a LCCT at the Kuching airport in line with its plans to make Kuching a hub for the operations of low cost carriers in the future.

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Skypark to transform SAAS airport into private air travel hub
08 Aug 2008 11:36 AM THEEDGEDAILY

SUBANG: The transformation of the Sultan Abdul Aziz Shah (SAAS) Airport into a regional fixed base operation (FBO) for executive air travel would be completed when its commercial apparatus becomes operational in 24 months, said Subang Skypark executive director Datuk Ravindran Menon yesterday.

Speaking after the inauguration of Skypark FBO Malaysia Terminal, Ravindran said the first phase of the terminal was completed in five months, one month ahead of schedule.

Work on the second phase of the project on a 30-acre site, comprising a dedicated business aircraft precinct and aircraft parking hangar, costing RM150 million would begin once relevant approvals are obtained.

“When this is completed, we hope to bring SAAS airport back to life as an international hub for business aviation,” said Ravindran, adding it would also have maintenance, repair and overhaul (MRO) facilities.

Subang Skypark has teamed up with Switzerland’s Vistajet Holdings SA to use Skypark FBO Malaysia Terminal for capturing the Asian market for executive travels. Vistajet started operation last month with two Bombardier aircraft, costing US$60 million (RM198 million).

Its chairman Thomas Flohr said there was tremendous growth potential for FBO or private air travel in this region.

“Business aviation is now seen as a tool to make executives more efficient. We started with two aircraft but we plan to have five aircraft operating here by the end of 2009 as the demand for our services increase. We have 19 executive jets and we have placed an order for 35 new planes with an option for another 25, costing US$1.5 billion as part of our preperation to expand in this region,” said Flohr.

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Scomi sets sights on LRT jobs
by Yong Yen Nie, 08 Aug 2008 10:52 AM THEEDGEDAILY

RAWANG: Scomi Group Bhd has proposed to the government to expand the rolling stock of the existing monorail to cater for the increasing passenger volume. The company also expressed interest in participating in the extension of the current light rail transit (LRT) tracks.

Speaking to reporters after the ground-breaking ceremony of Scomi’s monorail factory here yesterday, the president of Scomi Engineering Hilmy Zaini said the proposal was prompted by the full capacity of the existing monorail.

“We would like to propose the expansion of the KL Monorail. The capacity (of monorails) today is quite limited, especially during the rush hour, and it’s time we consider the expansion of the LRT and the monorail system, in addition to the number of buses on the road.”

Scomi is proposing that the existing two-car monorail system be replaced with its four-car system. The cost of replacement is not known.

The other major job that Scomi is eyeing is the extension of the existing LRT lines which is already in the pipeline under the Ninth Malaysia Plan. The government is said to have allocated about RM10 billion for the extension of the LRT lines from Kelana Jaya to Subang Jaya and from Sri Petaling via Puchong to Subang Jaya.

The tenders are not out yet but leading the pack will be international manufacturers such as Bombardier of Canada who provided the systems in the existing LRT lines. This is because the LRT systems have proprietary technology that is owned by Bombardier.

The civil works on the existing line was done by local construction companies.

Although a new player, Scomi has secured some rail related works. Last November, Scomi Engineering secured a RM121.8 million contract to upgrade the electrical and mechanical systems under the Kelana Jaya LRT expansion project.

However, Transport Minister Datuk Ong Tee Keat said the decision on which company would take up the job does not rest on the transport ministry alone.

“It’s not a decision made by the Transport Ministry alone because the costing comes under the purview of MoF (Ministry of Finance),” he said.

Nevertheless, he said the transport ministry would take the initiative to study the feasibility of the proposals brought before them, despite the final decision being a collective one by both ministries.

In a related development, Ong said that the Gemas-Johor Bahru double-tracking rail project was not on the ministry’s radar at the moment as it wanted to concentrate on the refurbishment of the existing and old rolling stocks first.

“The project has to be deferred currently as our hands are already full,” he said.

The Edge weekly had reported that China Railway Engineering Corp (CREC) had expressed interest to build the 197-km long Gemas-Johor Baru double-tracking railway project estimated at RM9 billion. The Chinese company was awarded a portion of the double tracking job several years ago before the government back tracked on its decision and awarded it to a MMC Corp Bhd and Gamuda joint-venture.

On another matter, Ong said the ministry was evaluating the cost of overhauling, repairing and refurbishing the old electrical multiple units (EMU) to meet the shortage of rolling stock for the Komuter services provided by Keretapi Tanah Melayu Bhd (KTMB).

“Currently, we are studying the details, cost implementation and completion schedule, and we expect the evaluation process to be completed by the third quarter this year,” he said.

Ong said it would take at least two years to obtain new rolling stock units, and hence, the ministry was looking at repairing some old and abandoned units instead.

“So long as these old units are still repairable, we should always attempt to do so first,” he said.

Meanwhile, Hilmy said given the opportunity, Scomi would also like to participate in KTMB’s old EMU refurbishment project.

“We are in the rail business, and we certainly have the capacity to refurbish old units. If given the opportunity, yes, we will participate and put in the proposal for the refurbishment work.”

Hilmy added that the company’s proposals to build monorails in Mumbai and Vietnamese cities were at the advanced stage.

“There are no firm deals yet, but we hope they would be firmed up as soon as possible,” he said, adding that these projects were valued in the regions of “hundreds of millions”.

As Scomi had recently participated in another bid for a monorail job in Bologna, Italy, in addition to various bids in other countries, the company’s hands were already full for the year, he added.

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60 Percent Infrastructural Work In Iskandar Malaysia Given To Bumiputera Contractors
August 08, 2008 20:54 PM

MUAR, Aug 8 (Bernama) -- About 60 percent of infrastructural work worth RM3 billion in Iskandar Malaysia have been given to Bumiputera contractors.

Menteri Besar Datuk Abdul Ghani Othman said the remaining 40 percent would be given out through open tender, including to non-Bumiputera contractors.

"The amount (RM3 billion) does not include the works given directly to the small contractors through the federal and state government allocations," he said when opening the annual general meeting of the Johor branch of the Malay Contractors Association of Malaysia, here Friday.

Abdul Ghani, who is also the joint chairman of the Iskandar Malaysia Development Authority, said he would help Bumiputera contractors acquire jobs in the construction projects carried out private investors in the economic development region.

However, he said, they must be prepared to compete with their counterparts from the other communities.

"I would not just wash off my hands in this matter although there are private investments. I will try to channel some work to the Bumiputera contractors."

On claims that sand from Johor was still being exported to Singapore, he said from the feedback received from the Land and Mines Department and Customs Department, this was not true.

He, however, assured that sand mining in Johor would be monitored to ensure that the construction material was not exported to Singapore.

He said the state government only allowed the export of silica.

-- BERNAMA

[nazrey]

RM195m Kuching convention centre to open next August
Friday August 8, 2008, TheStar

_KUCHING: The new Borneo Convention Centre Kuching (BCCK) will boost Sarawak as a destination for conferences and events when it is completed next year.

Currently under construction, the RM195mil centre is scheduled to open for business in August 2009.

BCCK chief executive Trevor McCartney said the centre’s target market was international associations and corporations as well as local and regional organisations.

“We will initially target national and regional events while international events are our long-term target.

“For next year, we’re targeting 170 events ranging from banquets to meetings and conventions,” he said during a media briefing and project site tour recently.

Located on the Kuching Isthmus about 5km from the city centre, BCCK is the first purpose-built convention centre in Borneo and will accommodate up to 5,000 people in its Great Hall.

“The Great Hall can be divided to accommodate smaller conventions and exhibitions. Our target is events with 800 to 1,500 delegates,” McCartney said.

Other facilities include 14 meeting rooms, a restaurant called The Leaf which will serve international and Asian cuisines, a business centre and a covered carpark with 800 spaces.

McCartney said that one of the centre’s unique features was its roof designed in the shape of a leaf with environmental conservation in mind.

“Rainwater will run down a track on the roof to water features on both sides of the building where it will be collected and recycled,” he said.

Besides boosting the convention business in Sarawak, BCCK will act as a catalyst for development in the Isthmus area.

A five-star hotel, marina, shopping complex and office towers are developments planned for the area over the next 10 years, McCartney said.

[nazrey]

The state-of-the-art Borneo Convention Centre Kuching (BCCK)
by mochaholic of catscity.com.my

[nazrey]

Bina Puri close to landing RM290m EDL job
29-07-2008: By Jose Barrock THEEDGEDAILY

KUALA LUMPUR: Bina Puri Holdings Bhd is said to be close to bagging a RM290 million highway construction contract from Malaysian Resources Corp Bhd (MRCB), sources say.

The contract is understood to be a portion of the Eastern Dispersal Link (EDL), the RM980 million highway which will connect the tail-end of the North-South Expressway at Pandan to the Customs, Immigration and Quarantine complex in Tanjung Puteri, Johor Bharu.

Last June, the federal government awarded MRCB a 34-year concession for the design, construction, operation and management, and maintenance of the EDL, which is slated to be a three-lane dual-carriageway, 8.1km road with about 4.4 km elevated.

It is learnt that MRCB would be giving out the letter of award to Bina Puri in the next few days, with an announcement to be made to Bursa Malaysia shortly after.

With the award of this contract, Bina Puri’s order book will be nudged up to about RM1.7 billion. Other jobs under its belt are the RM300 million construction of the Pasukan Gerakan Am (a unit of the local police force) complex in Muar, Johor, and the RM228 million Dewan Undangan Negeri Complex in Kuching, Sarawak.

The company has also bid for the RM350 million Kementerian Kerjaya Komplex in Jalan Sultan Salahuddin, Kuala Lumpur, where it is up against the likes of IJM and UEM Group.

Bina Puri also has a presence in Thailand, the Middle East and Pakistan which account for RM860 million of its order book.

For the first three months of the current financial year ended March, Bina Puri posted a net profit of RM1.2 million on the back of RM150.6 million in revenue. In contrast to the corresponding period a year ago, Bina Puri’s net profit fell by 14%, despite a 44% increase in revenue.

In the notes accompanying its financial results, Bina Puri says that its earnings were adversely impacted by the high cost of raw materials, such as cement and steel bars, and also diesel. The company adds that it will negotiate with its clients to mitigate the impact of such increases.

Year to date, Bina Puri’s stock has gained about 9% in value, outpacing the Kuala Lumpur Construction Index by about 42%. The counter closed yesterday at 98.5 sen, up 1.5 sen.