Wednesday, December 13, 2006

UEM World to complete Rawang-Ipoh project for RM766.97m

The Rawang-Ipoh electrified double track rail project is back on track after UEM World Bhd received government approval to undertake the project for a contract sum of RM766.97 million.

UEM World said on Dec 13 the government had accepted its offer to complete the project and a formal contract would be executed soon.

The contract would involve the construction, completion, testing, commissioning and maintenance of the railway track.

“The period of the contract is for 22 months, commencing from June 1, 2005 to March 31, 2007,” it said, adding more details of the contract would be made available upon announcement of the execution of the contract.

UEM World added it intended to novate the contract to its 57.1% subsidiary UEM Builders Bhd upon the execution of the contract.

UEM Builders’ unit, UEM Construction Sdn Bhd, had been undertaking the works for the double track rail project on an interim basis since its appointment by the government on June 1, 2005.

UEM Construction took over the multi-billion ringgit project, which was 88% completed by former main contractor DRB-Hicom Bhd.

DRB-Hicom had pulled out of the contract after being owed by the government for dues on work already done as well as RM700 million in variation orders.

UEM World and UEM Builders share prices closed two sen higher to RM1.71 and RM1.39, respectively. DRB-Hicom was unchanged at RM1.58.


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