Sunway Construction Group Berhad (SunCon), via its a wholly-owned subsidiary Sunway Construction Sdn Bhd (SCSB) announced today (Oct 18) that it had accepted the Letter of Initial Appointment (LOIA) from K2 Strategic Infrastructure Malaysia Sdn Bhd (K2) for a project worth RM192.88 million.
The project is in involving a proposed development of data centre on a site located in Johor.
In the latest Bursa filing today, the group said the LOIA dated Oct 17, is as an instruction to commence and complete the works for the project in accordance with the terms of the LOIA pending the execution of the conditions of the contract for the appointment of SCSB as contractor for the project (LOIA works).
The contract sum for the LOIA works is RM192.88 million only being the fixed priced lump sum payment which shall include all applicable taxes and levies in relation to the LOIA works.
It is expected to be completed in November 2024, starting in October 2023, for the duration of approximately 13 months.
The group said the contract for the appointment of SCSB as contractor of the project shall be executed within 30 days for the date of LOIA or such other extended period as mutually agreed by SCSB and K2.
“Barring any unforeseen circumstances, the LOIA is expected to contribute positively to the earnings of SunCon Group for the financial year ending 31 December 2023 onwards,” the group said.
