Tanco via its wholly owned subsidiary Tanco Builders accepted the Letter of Award China Communications Construction to undertake the construction and completion of subgrade works of the East Coast Rail Link Project.
The LOA is for TBSB to undertake the works per the ECRL Project for the contract sum of RM43.3 million. Tanco Builders is a wholly-owned subsidiary of Tanco Development Sdn. Bhd., which in turn is a wholly-owned subsidiary of Tanco.
The rationale for accepting the LOA is to enable the Group to expand and strengthen its construction segment. It does not see any risk in undertaking the LOA, however, notes it will continue to exercise due care and take the necessary steps to mitigate the risk factor as and when they arise.
The LOA together with the Subcontract per the Works is expected to contribute positive to the future earnings of the Group.
