Gadang Holdings Bhd, a builder and property developer, is aiming to secure 20 per cent of the RM2 billion projects it tendered for, managing director and chief executive officer Tan Sri Kok Onn said today.
Currently, the group's construction and engineering division is actively participating in tenders worth more than RM2 billion, he told reporters after the group's extraordinary general meeting today.
Among the tenders are the proposed Kimanis power plant in Sabah worth US$300 million, the proposed 1,000-megawatt Manjung power plant and the Pahang-Selangor water transfer project.
The proposed Kimanis power plant project is expected to be awarded before end of this year, Kok said, adding that it will be a joint venture project with a China party.
Currently, he said, the division has ongoing contracts amounting to about RM930 million and the balance of contract works to date is RM470 million.
Among the projects are the proposed construction and completion of the Hospital Rehabilitasi Cheras (Baru) project worth RM342 million and earthworks package for the proposed development of new Low-Cost Carrier Terminal at Kuala Lumpur International Airport, Sepang, worth RM292 million.
Gadang will continue to bid for government and private finance initiative (PFI) projects, Kok said, adding that the construction and engineering division will continue to be the major revenue driver.
Currently, the division was contributing 69 per cent to the group's revenue, he said.
On the company's property division, Kok said Gadang Land Sdn Bhd planned to launch three projects by the end of this year with a gross development value of RM200 million.
The projects are located in Salak South in Kuala Lumpur, Tampoi in Johor Baru and Pokok Sena in Kedah, he said, adding that the company was also looking to launch RM110 million worth of property projects over next year.
On the proposed joint venture in Vietnam's Long An Province to undertake a waterworks project with 300,000 cubic metres of water a day, Kok said this was still at the feasibility stage.
In November 2008, Gadang's unit Green Water Investment Pte Ltd signed a memorandum of understanding with the Long An People's Committee for the proposed project.
The delay was due to the change in the local government there, he said.
On the plantation division, Kok said Gadang was also looking to expand its new business segment in Sabah via joint ventures with landowners.
The division was in negotiations with landowners for another 10,000 acres land for oil palm plantation development on a joint venture basis and was also looking to acquire land or engage in joint ventures, he said.
Currently, Gadang is developing two parcels of land, totalling 5,181 acres in Ranau, Sabah, into an oil palm plantation.
Total investment for the development will be more than RM30 million for next three years, Kok said, adding that the unit was expected to start contributing five to 10 per cent to the group''s revenue in the financial year ending May 31, 2013.
The entire area is forecast to generate a yearly turnover of about RM20 million upon full maturity.
At the extraordinary general meeting, Gadang obtained shareholders' approval for the proposed rights issue, involving two rights shares for every three held and one warrant for every four rights shares held.
Gadang expects to raise at least RM25 million from the exercise which will be used for working capital as well as reposition the group for the next level of growth. -- Bernama
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