8 contractors shortlisted for Sibu Airport
According to The Business Times, eight companies have been shortlisted to bid for a contract worth some RM150m to upgrade the main terminal building and parking apron at Sibu Airport in Sarawak. The companies include Trans Resources, IJM Corp, Gamuda, Muhibbah Engineering and diversified Kuching-based Musyati. The companies were shortlisted as they had met the technical requirements and have built or upgraded airports previously. The deadline for the companies to put in their bid is May 20 and award should be in July.
While it looks promising that two of our picks for the sector – IJM (Buy, TP RM6.00) and Gamuda (Buy, TP RM4.20) are in the running, the contract value at RM150m is relatively small versus their current orderbook sizes of RM4.2bn and RM5.2bn respectively. IJM may stand a better chance of the two given it was involved in the runway upgrade in 1999. Having said that, the Sarawak construction industry is relatively a closed market dominated by local state contractors.