KUALA LUMPUR: SUNWAY CONSTRUCTION GROUP BHD’s joint venture (SunCon) has secured a highway contract worth RM508mil in Tamil Nadu.
It said on Thursday Sunway Construction Sdn Bhd-RNS Infrastructure Ltd accepted the letter of award from the National Highways Authority of India.
The project consists of developing a new road and widening of the existing road to four lanes on a 36.75km highway stretch in Tamil Nadu.
“The project will be operated under the hybrid annuity model (HAM), where NHAI will pay 40% of the project cost during the construction period while the remaining 60% will be paid over a period of 15 years as fixed annuity amount, ” it said.
SunCon said HAM is an initiative by the Indian government which was introduced to have a better financial mechanism for road development.
The letter of award also includes a 15-year operations and maintenance contract which will bring about an additional RM4mil per annum.
“We are very pleased to clinch our first overseas project for the year as this is part of our plan for geographical diversification focused on Asean and India, ” said SunCon group managing director, Chung Soo Kiong.
The development and widening of the highway stretches from the Thorapalli Agraharam to the Jittandahalli sections of national highway (NH) 844. Work is expected to start in October this year and the construction period is two years.
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