BBR wins S$81.5mln LTA contract

Deal for facility building design and construction supporting Downtown Line Project increases BBR’s public sector presence.

Mainboard-listed BBR Holdings (S) Ltd (BBR) on Thursday announced its 4th project secured this year – a Land Transport Authority (LTA) contract worth S$81,495,000 consisting of the design and construction of the Tai Seng Facility (TSF) Building in connection with the Downtown Line (DTL) Project.

This new contract was awarded to BBR’s wholly-owned subsidiary, Singapore Piling & Civil Engineering Private Limited. The contract is for a 53-month period and the TSF Building, located at the north of Defu Lane 11 between Hougang Avenue 3 and Airport Road, is scheduled for completion in November 2014. Planning and design work on the project has already started in June 2010, according to a BBR report.

The scope of architectural, civil and structural works includes plumbing and drainage works, piling and new foundation works, cutting and covering of tunnels, waterproofing works to structures and tunnels, works on water services and related systems as well as landscaping works. Electrical and mechanical building services works include works to the air-conditioning and mechanical ventilation systems, fire protection systems, compressed air system and building management system.

When completed, the TSF Building will provide maintenance, operation and staff facilities for the DTL Project and will comprise a train car delivery and access shaft, train workshops for maintenance and inspection, train wash bay and other facilities necessary to support the smooth operation of the railway.

BBR Group, which started in 1993 as a specialist engineering group, has three core business activities, namely General Construction, Specialised Engineering and Property Development.

Increasing presence in public sector

Over the years, BBR has been steadily increasing its market presence in the public sector building and construction space, a sector that continues to be driven by substantial Government investments into large infrastructure projects. In May this year, the Group won a contract worth S$139.6 million from the Urban Redevelopment Authority to construct Phase 3B (MC02) of the Proposed Common Services Tunnel (CST) at Marina Bay. BBR had secured an earlier S$189.6 million contract for Phase 3A of the CST in December 2007; this is due for completion in the second half of next year.

Mr Andrew Tan, BBR Group’s Chief Executive Officer, was pleased to have made further headway in the public sector arena. He said: “I’m delighted to be involved in the Downtown Line Project as this is an important development in Singapore’s transport infrastructure and Mass Rapid Transit network. This new contract further strengthens our position in the public sector arena as a leading builder and contractor and adds variety and value to our existing portfolio.”

Ongoing projects

The Group continues to be busy with other civil engineering and building projects from both the public and private sectors, including a S$4.9 million contract secured earlier this month to undertake piling works for The Vision condominium development at West Coast Crescent targeted for completion by the end of the year, a S$77.7 million contract to build the Singapore Island Country Club’s main clubhouse scheduled to be finished in 2011, and a S$104.2 million contract from the Housing & Development Board to build seven blocks of flats in Yishun Neighbourhood 4 with completion date in 2012.

Based on BBR’s order book of S$520 million as at 11 May 2010, new projects secured since then have strengthened the gross order book to approximately S$605 million to date, comprising mainly civil engineering and building projects in Singapore and Malaysia.

The Group announced a net profit after tax of S$4.6 million for first quarter ended 31 March 2010, up 64% from the preceding corresponding quarter, on revenue of S$32.3 million.