Sembawang Bags $250m Genting Job

Source : The Business Times, August 3, 2007

Resorts World deals worth $1.6b to be awarded by Q108

Genting International has awarded more than $600 million of contracts for its Resorts World Sentosa (RWS), with the latest $250 million deal going to Sembawang Engineers and Constructors (Sembawang).

Contracts so far have been for preliminary works including soil investigation, road diversion and procurement.

By the first quarter of next year, Genting expects to have awarded $1.6 billion of contracts, including three main building contracts.

It has also set up its own plant to supply concrete on site, which is seen as a measure to offset rising construction costs.

Sembawang CEO and president Alwyn Bowden would not comment yesterday on whether price was a deciding factor in its winning bid. The construction sector is in an upturn and Sembawang 'does not need to take huge risks in terms of time and escalation', he added.

In a statement yesterday, Sembawang - formerly a subsidiary of SembCorp Industries and now a member of India's Punj Lloyd Group - said that the contract was awarded 'following intense competition from other international consortiums'.

Mr Bowden reckons that about five other bids were submitted.

The win is especially gratifying as Sembawang beat international consortiums, he said.

'It further underlines that Sembawang's footprints can be seen in many places in the creation of modern Singapore over the past 25 years.'

Genting International has said that RWS will create 35,000 indirect jobs. And many of these are expected to be in the construction sector.

Mr Bowden said: 'It appears (Genting) was deliberate on including local firms in the bidding list.'

Sembawang's contract involves building a concrete raft foundation, basement and associated mechanical and engineering works for RWS.

He said that the contract is for phase one of RWS only and is expected to be completed by the middle of next year.

Asked if Sembawang will face any problems, he said that the RWS project is 'equipment intensive' but the company has lined up its equipment well in advance. Sembawang also owns 30-40 cranes, he said.

Sembawang is Southeast Asia's largest engineering and construction group, with projects in South-east Asia, the Middle East, China, India, Mexico and the UK.

In Singapore, it is working on a $650 million waste treatment project in Changi and a $350 million MRT project in the Alexandra Road area