KUALA LUMPUR (Feb 1): Vizione Holdings Bhd announced yesterday that its joint venture company with Vertice Bhd has accepted the RM815 million contract from Consortium Zenith Construction Sdn Bhd to undertake construction works for Package 2 of the Penang Mega Infrastructure project.

The JV company is Buildmarque Construction Sdn Bhd, in which Vizione and Vertice have a 50% stake each. The award of the contract was first announced last September.

"The award is for the construction of a 5.7-kilometer by-pass from Bandar Baru Ayer Itam connecting to Lebuhraya Tun Dr Lim Chong Eu.

"The construction period shall be for a period of 36 months from the commencement date or from the date of issuance of the notice to proceed, subject to any extension of time granted under the construction contract," Vizione said.

The fixed contract sum of RM815 million, said Vizione, was arrived at based on total estimated costs required for the contract work — which amounted to RM707.06 million — plus some margins for the contractors to allow for risks and uncertainties in carrying out the project.

Buildmarque plans to finance the work via internal funds, bank borrowings and/or additional funds from its shareholders.

Vertice said China Railway Construction Corporation (CRCC) is the engineering, procurement and construction (EPC) contractor for Package 2 of the project, according to contracts dated Oct 6, 2013 and Nov 18, 2013, executed between CRCC and Consortium Zenith (CRCC contract).

The EPC scope excludes implementation, professional engineer endorsement, authorities liaison and any submission of document and drawing to local authorities.

Vizione added that to fulfil the contractual obligation of Consortium Zenith to CRCC pursuant to the CRCC contract, Buildmarque, in its capacity as project manager, agrees and undertakes to cause the award of the civil and structural construction works under the CRCC Contract to CRCC.

"Presently, Vizione Holdings Bhd’s wholly-owned unit, Wira Syukur (M) Sdn Bhd (WSSB) is negotiating with CRCC for WSSB to undertake the bulk of the construction works as a sub-contractor," Vizione added.

Vizione shares closed unchanged at RM1.01 yesterday, giving it a market capitalisation of RM564.56 million. The stock has been on an upward trajectory since Dec 26 last year, and has climbed nearly 22% from when it was trading at 83 sen a share.

Vertice, meanwhile, rose half a sen to 90.5 sen, valuing it at RM169.15 million. The stock has risen 9% or 7.5 sen since Jan 8, when it closed at 83 sen a share. — theedgemarkets.com

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