Mudajaya eyes RM4.5b EPCC contract

KUALA LUMPUR: Mudajaya Group Bhd is bidding for the RM4.5 billion main engineering, procurement, construction and commission (EPCC) contract in a consortium with Alstom and Eversendai for the Tanjung Bin 1,000-megawatt (MW) extension.

In a note today, OSK Research Sdn Bhd said it expected Mudajaya to carry out the civil works, estimated at between RM675 million to RM900 million, based on 15-20 per cent of the EPCC value.

OSK Research said with the protests at its Chhattisgarh independent power producer site in India resolved, the way was paved for stronger revenue recognition.

"Phases 1 and 2 of the power plant are now rescheduled. Given the force majeure nature of the protest, we think that a penalty for late commencement is unlikely to be imposed," it said.

It said Mudajaya's indirect Indian associate, R.K.M. Powergen Pvt Ltd, was now evaluating another extension potentially worth RM2 billion," it said.

The research firm said Mudajaya has been prequalified for a RM1 billion brownfield build, operate and transfer highway project in India, involving widening from four to six lanes.

OSK Research has maintained its 'buy' call on Mudajaya, with a lower fair value of RM4.13 against RM5.48 previously. - Bernama