KUALA LUMPUR, Nov 10 — Ibraco Bhd is expected to set up a joint-venture company with China Railway Engineering Corporation (M) Sdn Bhd (CRECM) and Nanyang Tunnel Engineering Sdn Bhd (NYTE) after securing a project related to the Kuching Urban Transportation System (KUTS) worth RM568.61 million.

Ibraco Construction Sdn Bhd (ICSB), a wholly-owned subsidiary of Ibraco Bhd, had partnered with CRECM and NYTE (collectively referred to as ICSB-CRECM-NYTE) to participate in the open tender by Sarawak Metro Sdn Bhd (SMSB).

CRECM is a wholly-owned subsidiary of China Railway Group Ltd, a state-owned enterprise in China, while NYTE is a wholly-owned subsidiary of CRECM.

SMSB is the implementer of the KUTS project, which aims to transform Kuching into a dynamic and competitive city with the provision of user-friendly mobility services through the Greater Kuching area with the introduction of the Autonomous Rapid Transit.

"SMSB advertised the tender on July 25, 2023 for the construction and completion of infrastructure works for Blue Line-Package 1 From Rembus to Stutong for the KUTS Project and ICSB-CRECM-NYTE had accepted the letter of acceptance from SMSB for the project today,” it said in a filing to Bursa Malaysia.

Following the award of the contract, ICSB, CRECM, and NYTE will incorporate a joint venture company for the purpose of implementing and undertaking the project.

"The incorporation of the new company shall be announced in due course,” it added.

Ibraco also said the project is expected to be completed by December 31, 2025 for Stage 1 and June 30, 2026 for Stage 1A.

On the source of funds, Ibraco said the project would be funded via internally generated funds and external borrowing of the company.

"The project is expected to contribute positively to the earnings and net assets of Ibraco for the duration of the project and will not have any effect on the share capital and substantial shareholders’ shareholdings of Ibraco Group,” it added. — Bernama