Singapore-listed engineering firm CNA Group is exploring the possibility of picking up an equity stake in Vietnam’s 30-year airport concession, to secure long term recurring income opportunities, the company said, in a regulatory filing Thursday.
The regulatory filing was on account the group’s subsidiary signing a Letter of Intent with Vietstar Airlines Multirole Corporation for a $70 million (approximately S$95.8 million) mechanical, electrical and plumbing (MEP) contract for an airport terminal in Vietnam.
This terminal in Ho Chi Minh City is expected to be operational by early 2017, and will comprise a 39,500 sqm passenger terminal building, a cargo terminal building and a multi-purpose warehouse, as well as ancillary buildings such as a sewerage treatment plant.
The current Tan Son Nhat International airport capacity has been recently expanded from 20 million to 25 million passengers annually. The new terminal is designed for handling 9 million passengers annually. The traffic is expected to be 85 per cent domestic and 15 per cent international passengers, growing at an average of over 13 per cent per year, the company added.
Michael Ong, CNA’s group CEO and President said the contract spotlights the company’s airport expertise and its niche as the regional specialist for airport-related building systems.
“We continue to see strong position in the transport and infrastructure sector in Vietnam and hope to build on this momentum by securing more airport-related projects in the region,” he added.
Headquartered in Singapore, CNA has direct presence in many countries in Asia and the Middle East including Malaysia, Myanmar, Philippines, Thailand, India, China, Vietnam and Dubai, having implemented a broad range of projects for commercial and government buildings, educational institutes, residential developments, semiconductor wafer fabs, pharmaceutical plants, other industrial manufacturing facilities, waste water treatment facilities, and aviation and transportation infrastructure.