July 17, Colombo: Malaysia's Salcon Engineering Berhad, a wholly-owned subsidiary of Salcon Berhad has bagged a Rs. 2.82 billion (RM 71.27mil) contract to build a storm water pumping station in Sri Lanka over a period less than two years.
Salcon Berhad in a market disclosure with Bursa Malaysia said the company on 16 July 2018 accepted the Letter of Acceptance dated issued by Sri Lanka's Ministry of Megapolis & Western Development to design and build Ambatale Storm Water Pumping Station.
Duration of the Project is 21 months from the date of commencement. The Project is a construction contract and has no option for renewal, the company said.
The project is contracted for USD 6.85 million (equivalent to RM27.67 million) and LKR 1.718 billion (equivalent to RM 43.60 million) totaling equivalent to approximately RM 71.27 million (including relevant taxes and duties and VAT).
"The Project is expected to contribute positively towards the earnings and net assets of Salcon Group for the financial years ending 31 December 2018, 31 December 2019 and 31 December 2020," it said.
Salcon does not foresee any exceptional risks other than execution risks associated with the Project.
The purpose of establishing a pumping station is to pump out water during high water levels in Kelani River and high rainfall in the areas upstream of Madiwela East Diversion Canal.
The proposed pumping station is expected to enhance the conveyance capacity to reduce the flood risk to the Colombo catchment, especially to Parliament Lake and surrounding area while minimizing the environmental impact from the proposed improvements while maintaining a sustainable environment.