SUBANG: Construction-and-property firm Kumpulan Europlus Bhd will be calling for the tenders of the last two remaining packages of the West Coast Expressway (WCE) project in September and year-end.
The company’s chief executive officer Datuk Neoh Soon Hiong said 24% of the expressway have been completed with some portions progressing further than other portions because of an earlier start.
He told reporters following the company’s AGM that nine of the 11 packages comprising the works for the expressway have been given out with work commencing on five of the packages.
“The two remaining packages, namely Packages 11 and 7, will be open for tender in September and the year-end, respectively,” said Neoh.
“The company expects the WCE concession to contribute an estimated RM6bil in revenue over a period of five years.
“Our main focus now is to complete construction of the expressway within the five-year timeframe, which is end of 2019.
“We will look for opportunities to be involved in the construction of the highway,” said Neoh.
Kumpulan Europlus also has a 30% stake in a joint venture with IJM Corp Bhd for an engineering, procurement and construction (EPC) contract in the WCE project worth RM5.04bil.
The bulk of the company’s revenue comes from the expressway due to a new accounting standard that obliges it to recognise revenue during construction.
“The actual revenue will only come into play after completion of construction and commencement of toll operations,” said Kumpulan Europlus chief financial officer Lyndon Felix.
The company’s gearing ratio stands at 1.66 for FY2016, predominantly due to the financing of the WCE project.
The company’s the 40%-owned Bandar Rimbayu township, which has a total gross development value (GDV) of RM11bil, will provide earnings for the next 15 years.
“The property market is soft, but being a township, we are able to tailor our products to suit the market demand,” said Neoh.