MAHA TOWER | Kedah (Langkawi, Kuah) | 138m | Completed (2020)

NST, 12/3/2005

Perembun wins Iran highway deal
By MALCOLM ROSARIO


A LOCAL company, Perembun (M) Sdn Bhd, says it has won a major contract to build and operate a 125km six-lane highway near the Iranian city of Teheran.

A letter of award for the multi-million US dollar contract has been given to Perembun (M) Sdn Bhd, a privately-held company controlled by businessman Shorbaini Abdul Ghani.

“We have carried out site and earth studies, survey work and other related work. Even the preliminary design has been approved by the Iranian Government,” Perembun’s managing director Shorbaini said in Kuala Lumpur.

He said the 30-year highway concession is made up of three different packages — all of which make up a single 125km-stretch highway.

“We are in the midst of deciding on the best alternative from the perspective of technical, costs and other requirements,” Shorbaini said.

As the highway project is concession-based, Perembun does not need to furnish the Iranian Government with the detailed design and material costs and build-up rates.

But even so, the Iranian Government, by virtue of its Foreign Investment Promotion and Protection Act, has extended certain guarantees to Perembun.

The company is assured of things such as repatriation of funds and compensation against nationalisation, and no capital gains tax.

“The construction of the 125km expressway will take 42 months to complete,” Shorbaini said, adding that he has not appointed any sub-contractors to date, although several foreign contractors have registered their interest to take part in the project.

Apart from the Iranian road job, Perembun is also expected to know by this month if it is successful in securing a job worth RM300 million for construction and rehabilitation of the Lady Templer Hospital in Kuala Lumpur.

Perembun’s involvement in the project is via a joint venture with Gadang Engineering (M) Sdn Bhd, a unit of Gadang Holdings Bhd. Perembun has a 45 per cent stake in the joint-venture company.

The joint venture had received a letter of intent for the project from the Government in January 2003.

In May 2002, a consortium led by Perembun secured a RM214 million contract from the Works Ministry to undertake the upgrading of the Gemas-Ayer Hitam road on a joint-venture basis.

The project was secured on a competitive bid basis and was undertaken by Road Builder (M) Holdings Bhd and Perembun on a 40:60 basis, with Perembun holding the majority stake.

Perembun has also won a contract to build a landmark telecommunications tower in the heart of Langkawi.

Under the contract, Perembun is required to build a 308m tower in Langkawi on a similar concept as the 421m Menara Kuala Lumpur.