Sinohydro wins contracts in Malaysia and Kuwait
Sinohydro, China's biggest dam builder, has won a US$388 million contract to build university campuses in Kuwait and a 9 billion yuan (HK$11 billion) land reclamation project in Malaysia, the Shanghai-listed firm announced yesterday.
The Kuwaiti and Malaysian projects are the state-owned company's biggest overseas contracts since going public in October. Sinohydro has, excluding these latest projects, won international contracts worth US$721 million in Angola, Ghana and the Democratic Republic of Congo since its public offering.
In the first 11 months of last year, Sinohydro picked 101 billion yuan worth of contracts, including 46 billion yuan of overseas contracts, the company said.
On March 8, Sinohydro chairman Fan Jixiang signed the 9 billion yuan deal with Radiant Starfish Marine to reclaim 2,000 acres of land in the coastal Malaysian town of Mersing in three years. It would be the largest land-reclamation project in the Southeast Asian nation's history.
The Malaysia-based Radiant Starfish aims to build a tourist resort including apartments, commercial property and entertainment and tourist facilities, as part of the Malaysian government's plan to develop an east coast economic region along the Malay Peninsula, Sinohydro said.
The land-reclamation effort is part of the 22 billion ringgit (HK$57 billion) Mersing Laguna tourism project. Radiant Starfish also recently signed agreements with two other Chinese companies, Shengrong International and OCT, to develop a water park at the site 1 billion ringgits, the New Straits Times reported
Sinohydro has been involved with Malaysia's biggest dam, the Bakun Dam, as well as China's biggest dam, the Three Gorges Dam.
Sinohydro, in a joint venture with Kuwaiti firm Al-Hani, also won a US$518 million contract to build a business college and a women's college in Kuwait University.
Since Sinohydro owns 75 per cent of the enterprise, the Chinese state-owned firm expects to gain US$388 million. The project is slated to a less than three and a half years to complete.
Sinohydro has estimated that its net profit rose 20 per cent to 30 per cent last year, while revenue grew 10 per cent to 15 per cent. A Bloomberg consensus forecast projected that Sinohydro's turnover rose 19 per cent to 118 billion yuan last year.