Construction of PPA1M Kenanga project to start in 4Q


Protasco Bhd expects to begin the construction on the 1,681-unit Phase 4 of the 1Malaysia Civil Servants Housing Programme (PPA1M Kenanga) in the third or fourth quarter (4Q) of 2018.

PPA1M Kenanga will have a gross development value (GDV) of RM356 million and will take Protasco an estimated 36 months to complete.

The PPA1M Kenanga project is a joint venture between Protasco’s wholly owned subsidiary Protasco Development Sdn Bhd (51%) and Koperasi Polis Diraja Malaysia Bhd’s wholly owned subsidiary Kop Mantap Bhd (49%).

“We are confident that this project will contribute positively to the group’s future earnings,” Protasco group MD Datuk Seri Chong Ket Pen (picture) said in a statement last Friday.

The project was awarded to the collaboration in December 2017.

The company has completed Phase 1 of PPA1M Putrajaya in April 2017, and is currently building Phase 2.

The engineering services company recently said it will continue to focus on highway and road maintenance as its main revenue driver this year, as its property development business slows down due to weak market conditions.

Chong said the road maintenance arm contributes about 60% of the group’s entire revenue.

“We are considered the biggest road maintenance company in the country and we have maintained more than 50% of all the roads here,” he said.

The group was given a 10-year contraction extension in 2016 which covers an interim of a two-year period ending May 16, 2018, and an eight-year additional concession based on a performance-based contractual model to provide road maintenance in Terengganu, Kelantan, Selangor and Pahang, spanning 7,000km.

Chong said he is confident Protasco can achieve a minimum orderbook of RM500 million yearly.

“We have about RM1.1 billion in our orderbook as of Dec 31, 2017,” he told reporters after Protasco’s EGM in Kajang, Selangor, last month.

Chong said the group’s property arm, however, has postponed some new launches to next year.

“We hope the property market will recover next year,” he said, adding that once its property arm picks up, the group’s revenue from the non-government sector will increase.

The group will be launching the D’Perdana Telipot project in the 2Q this year in Kota Baru, Kelantan, where it has an estimated GDV of RM166 million.

Chong said he expects the group’s engineering services and consultancy segment to continue to bring in profits, as there is a demand for consulting services for infrastructure- related projects.