KUALA LUMPUR: MMC Corp Bhd has awarded a RM470 million sewage treatment contract to a proposed consortium comprising Salcon Bhd and Loh & Loh Constructions Sdn Bhd.
Salcon, in a filing to Bursa Malaysia yesterday, said the contract involved construction and maintenance of the facility within the Sungai Langat area in Selangor.
A joint venture called Salcon Loh & Loh JV Sdn Bhd will be set up to undertake the project on a 50:50 basis, Salcon added.
The 70-month project started yesterday and is due for completion on October 19 2020.
“The project is a construction contract and has no option for renewal. The project is expected to contribute positively towards the earnings and net assets of Salcon group for the financial years ending December 31 2015 to December 31 2020,” Salcon said.
Salcon and MMC had previously in April this year announced that they, together with Ahmad Zaki Resources Bhd, had received the letter of acceptance from Pengurusan Aset Air Bhd for the RM993.9 million Langat 2 water-treatment plant and reticulation contract.
The 36-month contract entails the construction and completion of Phase 1 of the Langat 2 water-treatment plant and reticulation system in Selangor and Kuala Lumpur.