Ibraco lands Mukah airport deal worth RM302.6m

PETALING JAYA: A plan to give Mukah, Sarawak, a proper airport has been set into motion, some eight years after it was first mooted.
Reports from as early as December 2009 cited plans to give Mukah’s short takeoff and landing terminal a RM600 million revamp to turn it into an airport to cater to the growth of the Sarawak Corridor of Renewable Energy’s central administrative centre.
A non-starter however, the idea was then brought up again during the Budget 2016 announcement.
In the latest development, Ibraco Bhd yesterday announced it has been awarded a RM302.64 million contract by the Sarawak Public Works Department for the construction of an airport in Mukah. It is to be completed in three years’ time.
In a filing with the stock exchange, the company said its wholly owned subsidiary company Ibraco Construction Sdn Bhd on July 17 received and accepted a letter of acceptance for the contract via Package 2 – final formation, airfield pavement, access road, landside infrastructure and building works.
Ibraco said the project, which will be financed with internally generated funds and external borrowing, is expected to contribute positively to the company’s earnings and net assets during the duration of the contract.
The company’s stock climbed 12 sen or 15.7% on the news yesterday, closing at 88 sen. It has a market capitalisation of RM436.84 million.
Ibraco saw net profit for the first quarter ended March 31, 2017 more than halve to RM3.336 million, on RM19.063 million revenue, which was also down by more than 50%.