Kerjaya Prospek awarded RM138.65m Seri Tanjung Pinang link bridge job

PETALING JAYA: Kerjaya Prospek Group Bhd has clinched a civil engineering contract worth RM138.65 million for the Seri Tanjung Pinang Phase 2 (STP 2) development via a related party transaction.
It told Bursa Malaysia that wholly owned subsidiary Kerjaya Prospek (M) Sdn Bhd had on June 5, 2018 accepted a letter of award from Tanjung Pinang Development Sdn Bhd (TPD) for construction works of a marine bridge crossing the sea linking Jalan Seri Tanjung Pinang on Penang Island to STP 2 Island.
Kerjaya Prospek said the construction works will take about 27 months from its scheduled commencement on June 11, 2018 and is targeted for completion by September 10, 2020.
The project is expected to contribute to the revenue, earnings and net asset per share of the group for the financial year ending from 2018 to 2020.
TPD is a subsidiary of Eastern & Oriental Bhd and holds the concession rights to the two-phase development of the STP reclamation project.
STP 2 is a 760-acre reclaimed island located across the waters to the east of STP 1, while STP 1 is a 240- acre reclamation project located adjacent to STP on the Penang main island which is fully reclaimed and close to completion.
Kerjaya Propsek executive chairman Datuk Tee Eng Ho, who is also non-independent non-executive director of E&O, said this is the group's first project with TPD.
"With our strong outstanding order book of approximately RM3.02 billion, we expect this project and our various other projects to contribute positively to our top line and bottom line growth for the next few years," he added.
Besides Eng Ho, Tee Eng Seng and Datin Toh Siew Chuon are also deemed as interested directors by virtue of their interests in both Kerjaya Prospek and E&O.
Kerjaya Prospek’s share price closed 6 sen or 3.9% higher at RM1.58 today on some 775,000 shares traded.