KUALA LUMPUR: Fajarbaru Builder Group Bhd today announced that its joint venture with Avionics Pty Ltd (APL) will expand its scope in the redevelopment of military facilities at Royal Malaysian Air Force (RMAF) base in Penang, with another RM39 mllion job.
The additional contract award by the Australian Department of Defence comes from an amendment of the head contract (International) two phase and minor works contract (International) was awarded in July 2023, from the Australian Department of Defence.
Fajarbaru's portion of the additional contract value is worth RM15.71 million.
On July 10, 2023, joint venture partners Fajarbaru Builder Sdn Bhd (FBSB) and APL were awarded a Head Contract (International) Two Phase from the Australian Department of Defence, to redevelop military facilities at Royal Malaysian Air Force (RMAF) Base Butterworth.
For the planning phase of the project, Fajarbaru's portion of the contract initially had a value of RM7.36 million.
On Jan 11, 2024, Fajarbaru announced that the total value of this portion was revised upwards to RM12.30 million, to account for additional works.
On March 15, 2024, Fajarbaru announced it had secured a minor works contract (International) from the Australian Department of Defence, with the group's portion of the contract worth RM11.04 million.
Following today's announcement, the total value of Fajarbaru's work secured for the project is now RM39.05 million as of May 28, 2024.
As part of the amended contract, the duration of the planning phase of the project has been extended to Sep 9, 2024, from April 30, 2024 initially.
The minor works contract (International) is now expected to be completed on Mar 28, 2025.
Previously, the minor works contract was scheduled to be completed on Nov 21, 2024.
"We are pleased to announce that Fajarbaru has secured an additional contract sum as part of our project to redevelop facilities at RMAF Base Butterworth in Penang. This development is a testament to the confidence the Australian Department of Defence has placed in our ability to deliver exceptional results and unlocks future opportunities in the defence sector.We will continue to pursue additional opportunities to expand our involvement in this project, leveraging our proven strengths in critical infrastructure and construction projects," Fajarbaru's group executive chairman Tan Sri Chan Kong Choy said in a statement today.
Fajarbaru's share price was trading unchanged at 45 sen a share, giving it a market capitalisation of RM335.1 million.