KUCHING: A total of three engineering, procurement, construction and commissioning (EPCC) contracts valued at RM707.24 million in Abu Dhabi, Malaysia and Indonesia have been awarded to Sarawak Consolidated Industries Berhad’s (SCIB) wholly-owned subsidiaries namely SCIB International (Labuan) Ltd (SILL) and SCIB Industrialised Building System Sdn Bhd (SIBS).
Chief executive officer and managing director of SCIB Rosland Othman said the three projects awarded to the company would strengthen their order book as well as their financial position.
“These latest projects also show that we are diversifying geographically as two of the projects are located outside Malaysia,” he said in a statement issued by SCIB on Tuesday (Aug 18).
SCIB revealed that the EPCC contracts include a letter of award (LoA) from Serba Dinamik International Limited (SDIL), a subsidiary of Serba Dinamik Holdings Berhad (SDHB), received by SILL for an EPCC contract located in Abu Dhabi, United Arab Emirates.
The contract worth RM607.77 million entails works, infrastructure and landscaping of Phase 1 of a hybrid mall together with management / sales office and is set to commence work in October 2020 until September 2024.
SIBS also accepted a LoA from Serba Dinamik Development Sdn Bhd (SDDSB), a subsidiary of SDHB, for an EPCC contract in Pengerang, Daerah Kota Tinggi, Johor Darul Tazim, Malaysia worth RM43.88 million to commence from October 2020 and to end in May 2021.
“The award involves piling works of a strata-titled commercial project comprising a 28-storey office block with three levels of commercial space as well as three service apartment blocks of 23-storeys, 25-storeys and 15-storeys respectively, together with parking, commercial and other amenities,” said SCIB.
The company also noted that the projects awarded by SDIL and SDDSB are considered related-party transactions as Serba Dinamik Group Bhd group managing director Datuk Dr Mohd Abdul Karim Abdullah is the non-independent non-executive chairman and major shareholder of SCIB.
“As such, Datuk Dr Abdul Karim is deemed to be interested in the contracts awarded,” it added.
SILL has also accepted a LoA from PT Cipta Multi Sarana worth RM55.59 million for earthwork job involving a toll-road construction project located in Prabumulih – Muara Enim.
The project will commence October 2020 and to end in April 2021.
“The board of directors of SCIB had sought and received the approval of new shareholders’ mandates and an extension from SCIB shareholders of the mandate pursuant to Main Market Listing Requirements of Bursa Malaysia Securities Berhad in relation to recurrent related party transactions exceeding RM1 million and more than one percent of the consolidated net assets of SCIB.”
