cover rationale - ChartNexus

for electricity and the revival of major national
projects, MRCB intends to position itself to
secure key contracts in the energy sector.
Efforts have also been stepped up to secure
overseas opportunities in support of the
Group’s goal to become a global company. To
date, projects in Qatar, Bangladesh and
Vietnam have been identified and actively
pursued.
In the previous financial year, the Group,
through its 55%-owned subsidiary Transmission
Technology Sdn Bhd (TTSB) successfully
completed and handed over all of its 500kV
transmission lines and substations. During the
financial year, the Group managed to build on
its track record by securing another significant
power transmission project.
In July 2002, Transmission Technology Sdn Bhd
(TTSB), being a member of a consortium, was
awarded the RM400 million contract for the
engineering and construction of the Sabah
East-West Grid Interconnection transmission
line, connecting Kota Kinabalu on the West
Coast Grid to Sandakan on the East Coast
Grid. This project, which will complete the
transmission grid for Sabah under the 8th
Malaysia Plan, is expected to be completed in
2005. The consortium was also awarded a
RM8.245 million contract to undertake the
survey and wayleave services for the same
project earlier in February 2002.
In May 2002, the disposal of MRCB’s 70%
stake in Sepang Power Sdn Bhd to Tenaga
Nasional Berhad (TNB) for RM115 million was
finalised. The sale contributed significantly to
the Group’s bottom line in the financial year
under review.
INFRASTRUCTURE
Work on the Ipoh-Lumut Expressway
concession by Seri Ipoh-Lumut Expressway
Sdn Bhd (SILEX), a 70% - owned MRCB
subsidiary, has now been converted into
a Government funded road expansion
programme for the existing Federal Route 5
between Ipoh and Lumut. The design of the
expansion programme has been completed
and it is anticipated that the final award of
contract will occur in early 2003.
During the financial year, the Group also
entered into a Joint Venture Agreement with
Wira Kristal Sdn Bhd on 30:70 basis for the
construction of the Kuala Lumpur North East
Expressway Project on a privatisation basis.
With a concession period of 33 years and an
estimated cost in excess of RM1 billion the
18km expressway links densely populated
areas within North East Kuala Lumpur to major
highways such as the NKVE and MRR2.
Construction is expected to commence by the
end of 2003.
The key focus of the division continues to be
the development of long-term income
generating businesses for the Group including
exploring and pursuing new opportunities in
privatised highways and other utility or
infrastructure concessions. MRCB expects this
division and business to gradually increase its
share of contribution to the Group’s revenue
and profits in the longer term.
PROPERTY DEVELOPMENT
Kuala Lumpur Sentral
Property development and investment
continues to be a mainstay of MRCB’s
activities. In this respect, the prestigious Kuala
Lumpur Sentral project represents the jewel in
the Group’s property development portfolio.
The master plan of Kuala Lumpur Sentral was
developed in 1994 when the Government of
Malaysia through a privatization exercise
awarded the concession to Kuala Lumpur
Sentral Sdn Bhd (KLSSB), a consortium led by
MRCB, to develop an integrated railway
station for Kuala Lumpur. In return, KLSSB was
given the rights to develop the surrounding 62
acres of freehold land for commercial
development, which features corporate office
Laporan Tahunan 2002 Annual Report
OPERATIONS REVIEW (CONTINUED)
69