Knusford Bhd has inked a deal with ArthaLand Corp and China Railway Dongfang Group Sdn Bhd (CRECSB) to undertake engineering, procurement and construction (EPC) contract on ArthaLand’s Cebu Exchange Project located in Cebu, Philippines.
In a filing with Bursa Malaysia, Knusford said the parties shall execute an EPC contract which was subjected to the terms and conditions to be mutually agreed between ArthaLand and the joint venture (JV) company. CRECSB and KB will form a 70:30 JV company in the Philippines to execute the EPC contract.
Knusford said the estimated value of the EPC contract was US$166mil. The final contract amount, work scope and construction schedule shall be set forth in the EPC contract to be executed between Arthaland and the JV company.
ArthaLand’s Cebu Exchange is a 38-storey office building which will rise on an 8,440 sq m property. It is designed to accommodate information technology and business process management (IT-BPM) locators who are expanding their operations in the region. It will be the first and only Grade-A office building in Cebu to be on target to achieve dual green building certification from the US Building Council’s Leadership in Energy and Environmental Design (LEED) program as well as from the Philippine Green Building Council’s Building for Ecologically Responsive Design Excellence (BERDE) program.
“The EPC contract will not have any effect on the share capital or substantial shareholders’ shareholding. The EPC contract (if secured) is expected to contribute positively to the future earnings and net assets of the Knusford Group,” it said.