Friday, January 30, 2009

Koh Brothers Wins $145m HDB Contract

Source : The Business Times, January 29, 2009

The Housing and Development Board (HDB) said yesterday that it has awarded a $144.6 million contract to build the first part of Punggol Waterway to Koh Brothers. The win brings the value of contracts Koh Brothers has on hand to over $690 million.

Waterfront town: An artist's impression of the new Punggol development. Construction of the first part of Punggol Waterway - a 2.4km stretch of a total 4.2km waterway connected to Sungei Punggol - is set to start next month and will be completed by the fourth quarter of 2010.

Construction of the waterway is scheduled to start next month and will be completed by the fourth quarter of 2010. The waterway is part of the government's plan to make Punggol a 'waterfront town'.

Koh Brothers expects the contract win to have a material impact on its financial performance for the year ending Dec 31, 2009. Chief executive Francis Koh said he is confident the company's track record and ability to innovate will serve it well as it continues to tender for higher-value projects.

The contract, awarded to Koh Brothers' fully-owned subsidiary Koh Brothers Building & Civil Engineering Contractor, includes construction of the 2.4km waterway and related engineering works in Punggol Town. This 2.4km stretch is the first part of a planned 4.2km waterway connected to Sungei Punggol.

'Residents can look forward to enjoying various recreational activities ranging from water sports to a leisurely walk along a landscaped promenade on both banks of the waterway,' HDB said.

HDB launched more than 4,000 flats in Punggol last year. The agency also plans to launch the first site at Punggol's town centre for a mixed commercial and private residential development by 2010/2011.

By end-2011, there will be about 23,000 completed flats in Punggol. In the longer term, another 21,000 public and private homes will be built along the waterway, HDB said.

Koh Brothers shares closed unchanged at 13 cents last Friday, the last day the stock was traded.

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