Fajarbaru JV secures RM131.6 mil job expansion for redevelopment of military facilities in Butterworth

• "The works involve facilities upgrades to the RMAF base in Butterworth, including operational and recreational upgrades to airfield pavements, ground lighting infrastructure, drainage, rugby pitch, futsal court and other associated infrastructure," said Fajarbaru in a statement.

KUALA LUMPUR (Feb 4): A joint venture (JV) between Fajarbaru Builder Group Bhd (KL:FAJAR) and Avionics Pty Ltd has secured a RM131.6 million contract from the Australian Department of Defence that expands their scope of works in the redevelopment of military facilities located at the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang.

The latest contract is for the delivery phase of Phase Two of the design and construction of the infrastructure project, according to the turnkey contractor’s filing. Fajarbaru's portion of the additional works, under its wholly owned FBG Builder Sdn Bhd, is RM75.9 million, while Avionics’ portion is RM55.7 million.

With the latest contract, Fajarbaru has secured works worth RM115 million for the project, while Avionics' portion amounted to RM70 million. "The works involve facilities upgrades to the RMAF base in Butterworth, including operational and recreational upgrades to airfield pavements, ground lighting infrastructure, drainage, rugby pitch, futsal court and other associated infrastructure," said Fajarbaru in a statement.

The contract period has also been extended to Dec 8, 2025, for Stage 1 (Australian leased facilities), and Sept 1, 2026, for Stage 2 (Malaysian facilities redevelopment).

The contract was first awarded to the JV on July 10, 2023, for the planning phase of the project. At the time, Fajarbaru's portion of the contract was valued at RM7.36 million. This was revised upwards to RM12.3 million in January 2024, and two months later to RM23.34 million, and subsequently to RM39.05 million in May that same year.

“As we continue to raise the bar, the expanded scope of the RMAF Base in Butterworth project underscores our ability to deliver complex, high-quality projects on time and within budget,” FBG Builder group executive chairman Tan Sri Chan Kong Choy said.

Fajarbaru’s share price settled one sen or 2.99% higher at 34.5 sen on Tuesday, valuing the group at RM256.92 million.

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