Koh Brothers Eco Engineering 5HV announced that its wholly-owned subsidiary, Koh Brothers Building & Civil Engineering Contractor (KBCE), together with its joint venture partner, LBD Engineering, has secured a $186.0 million contract from the Housing & Development Board (HDB), for the building of the Kallang Integrated Development.
Under this contract, the joint venture company (JVCo) will be involved in the building of public housing, covered linkway along Lorong 1 Geylang, and road expansion works. In terms of facilities for this integrated development, the contract will include the construction of a child care centre, future communal facilities, and an environmental deck (including fire protection system for the bus interchange). In addition, the JVCo will be involved in the construction of a bus interchange, improvement works between the MRT station and the bus interchange as well as landscaping works.
With the group’s 10% stake in the JVCo, the contract will uplift the group’s order book of $684.6 million as at Dec 31, 2022 to $703.2 million, extending visibility till 2027.
Koh Brothers Eco's CEO Paul Shin says: "We are pleased to leverage on our building expertise to support this unique, integrated public project that’s located along the Kallang River, with close proximity to the Kallang MRT station. Our healthy order book is backed by this joint venture project, as well as the ongoing mechanical, electrical and instrumentation control and automation (MEICA) works at Tuas Water Reclamation Plant, which will generate a steady, recurring maintenance income post-completion in 2025. We will continue to leverage our deep expertise in construction and civil engineering to capitalise on the strong demand in the public sector.”
Shares in Koh Brothers Eco closed at 3.3 cents on June 13.
