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Sunday, 7 August 2011

Scomi eyes more tenders in Brazil, India

Scomi Group Bhd is eyeing more public transport tenders over the next 12 months in Brazil and India, bolstered by active construction activities in the two countries, particularly in infrastructure.

Its Group Chief Executive Officer Shah Hakim Zain said the group plans to focus on Brazil, especially with the country actively spending on infrastructure over the next two to three years, to prepare for the 2014 FIFA World Cup and the 2016 Olympics.

"The level of activity is very high. We want to focus on one country first. In fact, we expect over the next 12 months, four more tenders to come up, especially in public transportation," he said at the news agency's headquarters on Friday.

In this regard, Scomi will continue to work with Brazil's local construction companies under a consortium, to bid for projects, with different partners for different states.

"We are looking at supplying more monorails. In Rio, there's a tender coming up in October and other cities that are also involved in the World Cup," Shah Hakim said.

On Friday, Scomi Group's subsidiary, Scomi Engineering Bhd and its consortium partners were awarded the Manaus Monorail Project worth RM2.76 billion.

Scomi's share of the contract is about RM646.38 million.

According to news reports, Brazil is expected to spend about US$14 billion on airports and other projects directly related to the World Cup, which provides a huge opportunity for local and foreign construction companies to tap into.

For India, the group is also expecting more new tenders, especially in infrastructure projects, Shah Hakim said.

"Like Brazil, India is very big and there's a lot of activity going on. We expect another two tenders this year and the government will progressively spend more on infrastructure," he added.

India will reportedly spend US$1 trillion over the next decade to improve infrastructure around the country, from ports and roads to railway lines and power generation.

In terms of revenue, Shah Hakim said Scomi's international business currently contributes about 75-80 per cent.

Going forward, he said with the increased volume of projects in oil and gas as well as public transport, the company is optimistic of achieving a good profit for the financial year ending 2011. -- Bernama


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