Koh Bros order book at $550m with LTA deal

KOH Brothers Group’s order book has climbed to $549.7 million after it clinched a major contract, the company’s chief executive Francis Koh said yesterday.

The company, with French joint-venture partner Soletanche Bachy, recently won a $582 million deal from the Land Transport Authority (LTA) to build the Downtown Line’s Bugis interchange station and associated tunnels.

Koh Brothers owns 45 per cent of the JV and Soletanche Bachy the other 55 per cent. Construction is scheduled to begin in the first quarter of 2009 and is expected to be completed in 2013.

It is the single largest contract ever won by Koh Brothers.

It is also the single biggest contract awarded so far for the $12 billion Downtown Line, which will open in stages between 2013 and 2016.

Koh Brothers’ current projects include the $166.9 million Common Services Tunnel at Marina Bay. It also completed work on the $226 million Marina Barrage in October.

The latest contract is not expected to have a material impact on the group’s performance for the financial year ending Dec 31, 2008.

‘We are confident our reputation and proven expertise will serve us well as we continue to bid for projects of higher value and deliver quality services,’ Mr Koh said.

The proposed tunnel under the latest contract runs under Rochor Road from Beach Road to Queens Street, crossing four road junctions.

Koh Brothers aims to minimise inconvenience to vehicular and pedestrian traffic during construction.

Koh Brothers stock shed half a cent yesterday to close at 9 cents.

Source : Business Times – 3 Dec 2008