Malaysian firm SunCon secures RM 508-mn road contract

Sunway Construction Group Bhd (SunCon) has bagged a RM 508 million (Malaysian currency) contract from NHAI, SunCon said in an official statement. The project was awarded to Sunway Construction Sdn Bhd – RNS Infrastructure Ltd, a consortium formed by Sunway Construction Sdn Bhd and RNS Infrastructure Ltd. The scope of work in the project includes developing a new road and widening of the existing one into four lanes on a 36.75 km highway stretch in the state of Tamil Nadu on HAM model. Under the Hybrid Annuity Model (HAM), NHAI will pay 40 percent of the project cost during the construction period. The remaining 60 percent will be paid over a period of 15 years as fixed annuity amount. The project also includes 15-years of operations and maintenance which will bring about an additional RM 4 million per annum. Managing Director of SunCon, Chung Soo Kiong said that the company is pleased to clinch its first overseas project for the year as this is part of its plan for geographical diversification focused on Asean markets, including India. Under the project, roads will be developed and widened on highway stretches from Thorapalli Agraharam to the Jittandahalli sections of NH 844 where construction work is expected to commence in October and is to be completed in two years.