KUALA LUMPUR: Citaglobal Bhd, via its wholly-owned subsidiary Citaglobal Engineering Services Sdn Bhd (CES), has received and accepted a letter of intent (LoI) from Mutiara Perlis Sdn Bhd (MPSB)
to undertake engineering, procurement and construction (EPC) works for the development of the Sanglang Integrated Jetty project in Perlis.
The Sanglang development is divided into phases: Phase 1A, Phase 1B, Phase 2 and Phase 3.
The contract sum of Phase 1A is RM200 million, while the contract sum for the other phases has yet to be determined.
Citaglobal will first finalise the contract to execute Phase 1A of this project.
With this contract, Citaglobal's existing orderbook increased to RM933.2 million from RM733.2 million.
Citaglobal executive chairman and president Tan Sri Dr Mohamad Norza Zakaria said the completion of Phase 1 of the Kedah Rubber City project could have been one of the factors in earning the credentials to undertake this important project.
"Our immediate focus is to finalise Phase 1A of the Sanglang development contract as well and efficiently as possible," he said in a statement.
The Sanglang development is being constructed under the Perlis Maritime Corridor, which aims to facilitate Perlis' development in terms of logistics, tourism, aquaculture and fisheries.
This project will provide jetty facilities for berthing merchant ships, luxury cruises and yachts, deep-sea fish and oil and gas, and maintenance, repair and overhaul services for merchant ships.
In the recently re-tabled Budget 2023 published on February 24, 2023, an additional budget was specifically allocated to support the Sanglang development to handle petroleum cargo and bulk cargo.
This is the second project from Perlis state that Citaglobal has won in less than six months.
On August 30, 2022, Citaglobal bagged an EPC contract to provide design, construction and equipment work for Phase 1 of the Perlis Inland Port (PIP) with a contract sum of RM373.5 million.
Meanwhile, the Sanglang development is expected to contribute positively to the consolidated earnings per share and net assets of Citaglobal.
Citaglobal can only ascertain the contribution period upon execution of this EPC contract.
Nevertheless, Citaglobal does not foresee any exceptional risk other than the normal operational risks associated with the project.
For background, the Perlis Maritime Corridor project was approved by the Perlis state government in May 2017 and developed by MPSB – a joint venture between a local company, Mutiara Infra Sdn Bhd, and Menteri Besar Incorporated Perlis.
This corridor will be located along the coast of Sanglang until Simpang Ampat, Perlis.
It is expected to create 5,000 job opportunities and be the catalyst for development in Sanglang and Chuping Valley, such as Chuping Valley Industrial Area (CVIA), PIP and others.