Scomi Eng: RM2.6bil Brazil monorail job yet to be finalised

PETALING JAYA: The contract for the RM2.6bil Line 17 monorail project in Sao Paulo, Brazil that is awarded to Scomi Engineering Bhd (SEB) and its consortium partners is yet to be finalised.

SEB clarified to Bursa Malaysia yesterday that the Brazil-based Sao Paulo Metropolitan Co had announced the tender had been awarded to the consortium but the contract had not been finalised.

“The confidentiality conditions stipulated in the tender agreement require the written consent of the client prior to disclosure of matters pertaining to the tender,” it said.

As such, SEB said, further information would only be available upon the finalisation of the contract and the consent of the Sao Paulo Metropolitan. “We will make the appropriate announcement to Bursa as and when there is a material development related to the project.”

The group had on June 8 replied to Bursa Malaysia's query letter on the financial effects of the contract on SEB and its portion of the RM2.6bil project.

It said the project would not have any material effect on the share capital, net assets or earnings of SEB for the financial year ending Dec 31, 2011. SEB, however, estimated that it would contribute positively to SEB's group financial position over the next 42 months.

It added that due to confidentiality obligations, it was not at liberty to disclose this information.

SEB had announced on June 3 that the monorail project had been awarded to the consortium which consists of the company, Andrade Gutierrez SA, CR Almeida SA, Engenharia de Obras and Montagens e Projetos Especiais SA .

The project entails the design works, manufacture, supply and implementation of the 18-km monorail system, which is also known as the Gold Metro of So Paulo.

SEB said the project was expected start in July this year and due for completion in 42 months.

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