GB Asiatic, CMEC team up in power and drugs projects worth RM9.2bil

KUALA LUMPUR: GB Asiatic Ventures Sdn Bhd has partnered with China Machinery Engineering Corp (CMEC) to sign two memorandums of developments with AJ Pharma Holding Sdn Bhd and PT Sriwijaya Utama Energy to undertake projects worth RM9.2bil.

GB Asiatic chief executive officer Datuk Wong Kong Choong said the projects involved building the world’s first halal vaccine and pharmaceutical plant for AJ Pharma with gross development value (GDV) of RM330mil in Bandar Enstek, Negri Sembilan and two coal-fired power plants in south Sumatra, Indonesia, with PT Sriwijaya worth around RM8.82bil.

CMEC, one of the top 10 infrastructure contractors in the world, is China’s state-owned company. It has exclusive strategic partnership with GB Asiatic in bringing into Malaysia and Asia-Pacific world infrastructure, construction technology with financing of up to 85% on gross development cost.

Wong said the projects would begin in the first quarter of 2016 and would add to the RM7.6bil project announced by the company earlier which would start work next year, including an airport in Indonesia and some other local projects.

He said this to reporters after the signing of four agreements today with the various partners on Monday. 

The event also saw GB and CMEC signing a memorandum of agreement with PT Sriwijaya Prima Energi for coal mining project in south Sumatra to supply the coal for its power plant and for export in the region.

Both also signed a memorandum of understanding with Urbico Group of Companies (Australia) for a mixed development in Brisbane and Gold Coast, Australia for a GDV of around A$10bil for 10-15 years.

On its partnership with CMEC, Wong said as the Chinese yuan entered the Special Drawing Rights and became one of the world major currencies, it was natural for China to invest more outside the country and acquire more foreign equities.

Malaysia’s weakening ringgit, lowered by almost 20% against US dollar, has made it more attractive compared with its regional peers in attracting more investments from China. - Bernama