Thursday, August 26, 2010

Zelan to see RM900m from Gombak Integrated Transport Terminal project

KUALA LUMPUR: Engineering and CONSTRUCTION [] group ZELAN BHD [] will focus on the Gombak Integrated Transport Terminal (GITT) project which is expected to provide an income stream of RM900 million over 25 years.

"The offer has been given by the government and we are in the process to negotiate on the terms and conditions of the concession," said its non-executive chairman Datuk Anwar Aji.

To be concluded in the next couple of months, the project would provide an additional RM220 million to the company's orderbook, he told reporters after the group's annual general meeting here on Thursday, Aug 26.

Besides the GITT, Zelan, which is an engineering, procurement and construction contractor specialising in power plant projects, has also participated in the bids for other projects.

It is bidding for a teaching hospital project from an international university as well as projects at Westports and Johor Port.

Anwar said the group would also participate in some projects secured by MMC CORPORATION BHD [], which owned 60% of a joint venture with Zelan.

"MMC will consider Zelan as one of the contractors but pricing-wise it will still be competitive because of related party transactions," he said.

Despite being faced with problems, Anwar said the company was working hard to turn around and scouting for new projects.

"We are still working hard to turn around the company to make us stay relevant in the market. We have been bogged down with a lot of problems for current projects like cost overrun and cash flow, so we spend a lot of time to address all these issues," he said.

Asked when a new chief executive officer will be coming on board, Anwar said the company, which was now being run by four exco members, has a list of candidates but yet to decide on the right one.

On another development, he said the company would be holding its extraordinary general meeting on Sept 7, 2010, to get a mandate from shareholders to sell 30 million shares in IJM Corp Bhd.

The company has a 7.12% stake in IJM and this would be reduced to slightly above five% after the sale. ' Bernama

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