Gadang gets work on new LCCT

By Sharen Kaur
Published in NST, Jan 13 2010

Construction company Gadang Holdings Bhd (9261) has won a RM291 million contract to build a runway and taxiways for the RM2 billion new low-cost carrier terminal (LCCT) at the KL International Airport (KLIA) in Sepang, Selangor.




The contract includes site preparation, earthworks and main drainage for the 4km Runway 3.



Gadang beat seven companies, including WCT Bhd and Sunway Holdings Bhd, for the job.



It told Bursa Malaysia yesterday that it would start work next month and complete it by December.

Gadang expects the contract to contribute positively to its earnings and net assets in financial years ending May 31 2010 and 2011.



"This is a fast-track contract. We are proud to win it after losing out on an earlier bid," Gadang managing director Tan Sri Kok Onn told Business Times.

It is the second contract awarded by Malaysia Airports Holdings Bhd (MAHB) under the RM2 billion project.



Last month, the airport operator awarded WCT a RM363 million contract for works that include site preparation, earthworks and main drainage.



A third contract to build the main terminal building is in the tender stage.



Kok said Gadang was working to submit a bid for the third contract, worth some RM1.2 billion. The job involves design, construction, testing, commissioning and maintaining the main terminal building, skybridge and piers.



The new LCCT is the single largest private finance initiative building project under the infrastructure allocation of the second stimulus package.



Other companies which submitted bids for various packages were IJM Corp Bhd, Ireka Corp Bhd, Fajarbaru Builder Group Bhd, Bina Puri Holdings Bhd and Mudajaya Group Bhd.



PJI Holdings Bhd plans to provide mechanical and electrical engineering services for RM500 million.



The new LCCT will be 1.5km away from KLIA's main terminal compared with 20km for the existing LCCT.



It will be linked to KLIA's main terminal building via the Express Rail Link.



The new LCCT, scheduled to be completed by the third quarter of next year, will cater for 30 million passengers a year, with potential to expand capacity to handle 45 million passengers.