Indonesian Political, Business & Finance News

Pernas-Taisei win core airport deal

| Source: AFP

Pernas-Taisei win core airport deal

KUALA LUMPUR (AFP): A consortium led by Malaysia's Pernas
Precision Engineering and Construction (Perspec) Sdn. Bhd. and
Japan's Taisei Corporation has clinched a core contract for
Malaysia's new international airport, officials said yesterday.

Kuala Lumpur International Airport Bhd. (KLIAB) officials said
the consortium, which also included Japan's Kajima Corporation,
Shimizu Corporation and Hazama Corporation, clinched the deal on
its tender price of 1.741 billion ringgit (US$6.964 million).

The group beat eight other international consortia,
shortlisted from 29 bidders, to win the much-touted deal to
construct the main terminal building, contact pier and baggage
handling system.

The airport project at Sepang, 40 miles (64 km) south of here
-- Malaysia's largest infrastructure project ever -- is partly
financed by a $640-million soft loan from Japan.

"KLIAB is confident that the selected consortium possesses the
experience, organization and capability to undertake this project
and its tender price is well within the KLIAB estimate," chairman
Clifford Herbert announced in a statement.

Herbert said the offer was the "lowest technically acceptable
tender." A French consortium, which offered the lowest bid,
failed to win the deal.

The consortium is expected to start work by December 15 and
complete the package by Sept. 15, 1997, he said.

The contract is the largest of 55 packages up for grabs for
the construction of the new international airport, which is
expected to cost a total of nine billion ringgit ($3.6 billion).

Nine consortia, involving companies from Japan, South Korea,
the United States, France, Saudi Arabia and the Netherlands were
shortlisted on Oct. 3 and a final announcement was expected Nov.
7 but was delayed almost a month.

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