20-05-2025
- Business
- New Straits Times
SunCon confirms Vietnam JV exit, Johor RTS works progressing
KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) has confirmed that its joint venture power plant project in Vietnam has been officially terminated, it said in a filing with Bursa Malaysia.
The group also said its RM1.5 billion Rapid Transit System Transport-Oriented Development (RTS TOD) project in Johor is progressing, with revenue already recognised.
The company said the 2,100MW coal-fired Song Hau 2 Thermal Power Plant project in Hau Giang, had been effectively terminated by Vietnam's Ministry of Industry and Trade as of July 1, 2024.
Sunway Construction Sdn Bhd, a subsidiary of SunCon, was part of an unincorporated consortium with Power Engineering Consulting Joint Stock Company 2 that was contracted to carry out the project.
The termination follows multiple contract addendums to extend the Notice to Proceed, the latest of which extended the deadline to Dec 31, 2024.
The initial agreement was signed in March 2023, with a limited NTP issued for works valued up to US$9.5 million (RM40.84 million) before full NTP issuance.
Meanwhile, SunCon noted that its RM1.5 billion RTS TOD project in Bukit Chagar, Johor Bahru, is ongoing.
The contract, awarded on Feb 28, by Sunway Integrated Properties Sdn Bhd, covers the construction of a multi-storey park-and-ride building, a retail mall, and a topside property above the RTS station.
SunCon said the RTS TOD Works have started generating revenue and have been reflected in the company's quarterly financial results.
