KUALA LUMPUR, Dec 17 — Gadang Holdings Bhd’s wholly-owned subsidiary Gadang Engineering (M) Sdn Bhd (GESB) has secured a RM131.37 million subcontract works from Binary Vista Sdn Bhd to undertake geotechnical, drainage and structural works for Central Spine Road, Pakej 2.

In a filing with Bursa Malaysia today, Gadang said the subcontract is for a duration of 30 months and shall be completed by the second quarter of 2024.

"The subcontract is expected to contribute positively to the earnings and net assets of Gadang Group for the financial year ending May 31, 2022 onwards during the subcontract.

"The risk factors affecting the subcontract comprise mainly the normal operational and execution risks which the group would take appropriate measures to address,” it said.

The Central Spine Road or Kuala Krai-Kuala Pilah Highway, Federal Route 34, is a new toll-free highway under construction in the centre of Peninsular Malaysia.

The 325-kilometre highway is built to eventually replace the former two-lane Federal Route 8 Gua Musang Highway and Federal Route 9 Karak-Tampin highway. — Bernama