Zelan To Focus On Gombak Project

Zelan To Focus On Gombak Project
Bernama 

ENGINEERING and construction group Zelan Bhd will focus on the Gombak Integrated Transport Terminal (GITT) project, which is expected to provide an income stream of RM900 million over 25 years.

"The offer has been given by the government and we are in the process to negotiate the terms and conditions of the concession," said its non-executive chairman Datuk Anwar Aji.

To be concluded in the next couple of months, the project would contribute an additional RM220 million to Zelan's orderbook, Anwar said after its annual general meeting in Kuala Lumpur yesterday.

Besides GITT, Zelan, which specialises in power plant projects, has also participated in other bids such as for a teaching hospital project from an international university and projects at Westport and Johor Port. Anwar said the group would also participate in jobs secured by MMC Corp Bhd, which owned 60 per cent of a joint venture with Zelan.

"MMC will consider Zelan as one of the contractors, but pricing-wise, it will still be competitive because of related-party transactions," he said.

Anwar said the company is working hard to turn around and scouting for new projects.

"The company has been bogged down with a lot of problems for current projects like cost overruns and cash flows, so we spend a lot of time to address all of these issues," he said.

Asked when a new chief executive officer will be coming on board, Anwar said Zelan, which is now being run by four exco members, has a list of candidates but yet to decide on the right one.

Meanwhile, he said the company will hold its extraordinary general meeting on September 7 to get a mandate from shareholders for a sale of 30 million shares in IJM Corp Bhd. The company has a 7.12 per cent stake in IJM. - Bernama