Ho Hup receives LOAs from CCC-ECRL for ECRL Section 6 works

KUALA LUMPUR, May 27 — Ho Hup Construction Company Bhd has received Letters of Acceptance (LOAs) from China Communications Construction (CCC-ECRL) Sdn Bhd for the engineering, procurement, construction and commissioning of the East Coast Rail Link (ECRL) project.

It said the works include Section 6, namely construction and completion of subgrade, drainage works and culvert work from chainage 364+507.00 to chainage 375+852.00, for a duration of 30 months, commencing June 15, 2020 at the total contract sum of RM53.79 million.

In a filing with Bursa Malaysia today, Ho Hup said another LOA was for Section 6, namely construction and completion of subgrade, drainage works and culvert work from chainage 390+111.00 to chainage 401+579.49 for a duration 30 months, also commencing June 15, 2020 for RM48.70 million.

The company said the contracts are subject to the acceptance of the LOAs by Ho Hup and formal sub-contracts to be entered into between the parties.

It said the LOAs will have no effect on the issued share capital and substantial shareholders’ shareholdings of the company.

They are expected to contribute positively to the revenue, earnings per share and net assets per share of the group, without any material effect on the gearing for the financial year ending December 31, 2020 onwards until the expiry of the ECRL contracts, it added. — Bernama