Boustead Projects obtains around S$242 million contract for recycling facility

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Boustead Projects said on Monday that JTC Corp. awarded it a construction contract valued at around S$241.9 million for a multi-storey recycling facility (MSRF) to be located at Kranji Loop in Singapore.

The contract was awarded to the company’s wholly owned design-and-build subsidiary, Boustead Projects E&C, via an open tender conducted on the government’s e-procurement portal, GeBIZ, it said in a filing to SGX after the market close on Monday.

Construction is expected to begin this month and be completed in 25 months, it said.

Boustead Projects E&C plans for the project to achieve Green Mark Platinum, or the highest eco-sustainable rating for a building under the Building & Construction Authority’s Green Mark Programme, it said.

Thomas Chu, managing director of Boustead Projects, said this was the company’s largest contract and largest public-sector project so far.

“We are encouraged to see the fruition of our efforts and continuous investments in advancing our engineering and construction capabilities and up-skilling our team, particularly through our integrated digital delivery approach and our growing adoption of prefabrication and other transformative technologies,” Chu said in the statement.

The contract raised the company’s orderbook backlog to S$460 million, which includes unrecognized project revenue as of end-September and the value of new orders obtained since then, it said. That is Boustead Projects’ highest backlog so far, it said.

While the project isn’t expected to have a material impact on profitability and earnings per share for the financial year ending 31 March, it is expected to have a positive impact for fiscal 2020 and 2021, it said.

Boustead Projects is 53 percent-owned by Boustead Singapore.

The MSRF contract raised Boustead Group’s orderbook backlog to S$545 million, Boustead Singapore said in a separate filing to SGX on Monday.

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