Sunway Construction Group Berhad (SunCon) has announced its acceptance of four Letters of Award (LOA) from The National Highways Authority of India (NHAI) and F&N Group of Companies worth RM333 million in total.
The first LOA from NHAI is to develop a 31.5km two-lane highway with a paved shoulder in the state of Tamil Nadu, India for a total contract sum of approximately RM315 million. The LOA also includes a 15-year Operations and Maintenance Contract worth approximately RM 850,000 per annum.
The project will be operated under the Hybrid Annuity Model (HAM) for a concession period of 15 years plus a 2-year construction period. This highway project was awarded to SunCon’s RNS Infrastructure Limited (Consortium member).
RNS Group is an Indian local company that provides a diversified spectrum of business from infrastructure construction services, manufacture of vitrified and ceramic tiles, as well as dealership and showroom for Maruti cars.
The joint venture is a long-term relationship that was established during SunCon’s maiden venture into India in 2001. It has also established a proven track record with the completion of two infrastructure projects previously.
SunCon, through its indirect subsidiary Sunway Engineering Sdn Bhd, has also secured three LOA from the F&N Group of Companies. The LOA comprises external solar photovoltaic (PV) system projects in Malaysia for the construction of solar roof-tops in Shah Alam, Pulau Indah in Selangor, and Karak in Pahang. The combined contract sum is valued at RM18.1 million.
“This new contract is our second India HAM project for the financial year ending December 2020 and marks a significant milestone in our regional expansion strategy. We are optimistic that SunCon is in a good position to capitalise on the plenty of opportunities that are present in the Indian market,” said the Sunway Construction Group Managing Director, Chung Soo Kiong.
“Despite the challenging economic landscape, SunCon has exceeded its new order book target of RM2.0 billion for the financial year ending December 2020. The total new projects secured by SunCon including the latest projects announced amounted to RM2.3 billion.
This demonstrates our resilient performance despite the economic downturn and we are well-positioned to capture further opportunities locally as well as regionally, in line with our business expansion plan,” Chung shared.