KUALA LUMPUR (May 9): Citaglobal Bhd’s wholly owned subsidiary has secured a RM261 million works contract for the Klang Valley Electrified Double Track Phase 2 (KVDT2).
The contract, spanning three years starting from June 1, 2023, was awarded by KVDT2’s main contractor Dhaya Maju Infrastructure (Asia) Sdn Bhd and is expected to be completed after 36 months from commencement, it said.
The KVDT2 is a rail rehabilitation project with an estimated value of RM4.475 billion that is being undertaken by Dhaya Maju LTAT Sdn Bhd — Dhaya Maju’s 80:20 joint venture with armed forces fund Lembaga Tabung Angkatan Tentera (LTAT).
The KVDT2 project involves the replacement of existing 25-year-old railway tracks, an electrification system and an upgrade and maintenance of the facilities involving two railway tracks from Salak South to Seremban, and from Simpang Port Klang to Port Klang.
In a statement, Citaglobal said its scope of works include the supply, delivery, construction, successful completion and maintenance of bridges, culverts, drainage and fencing works which forms part of the 265km electrified double-track network in the Klang Valley.
“We are very grateful to have won this contract and play a role in the construction of KVDT2,” said Citaglobal executive chairman and president Tan Sri Dr Mohamad Norza Zakaria.
“We will get down to business and look to complete the project within the stipulated timeline. This contract also marks Citaglobal’s orderbook approaching the RM1 billion mark, which further strengthens the earnings visibility of the company,” said Mohamad Norza, who is also a major shareholder in Citaglobal.
Shares of Citaglobal slipped one sen or 0.69% to RM1.44 at the noon market break, giving it a market capitalisation of RM601.24 million.
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