The government has given its commitment to grant to a Chinese company the construction of the Mengkuang Dam, which will increase Penang's water capacity from 23 metri cubic metres to 78 metric cubic metres.
The second phase, which involved of widening and increasing the dam's height and 13-kilometre dual flow steel pipe between the dam and Sg Dua water treatment plant is slated for completion in 2013, the research house said.
The government has agreed in principle for Chinese contractors to build the double-track rail project between Gemas and Johor Baharu, which is expected to have a track length of 250 kilometres.
"We feel that it makes sense for the EDT to be extended all the way to Johor Baru as it would create a second way rail connectivity from the north to south of Peninsular Malaysia, thus facilitating cargo flow," OSK Research said in a report today.
"Word is that a small contractor Global Rail SB along with its Chinese partner are looking to implement the Gemas–Johor Baru EDT on a private finance initiative basis," it said.
Local contractors such as MMC Corporation Bhd, IJM Corporation Bd, Loh & Loh Corporation Bhd and Fajarbaru could possibly land sub-contracting roles, it added.
These projects and some others, such as negotiations involving the paper and pulp plant in Sarawak by a company from China and an aluminium smelter, were reported amid the recent visit of China''s President Hu Jintao to Malaysia.
However, earlier speculation that Industrial and Commercial Bank of China would be granted an operating licence in Malaysia and that of a Chinese company buying a 10 per cent stake in Sime Darby did not materialise.
"We understand that a number of agreements scheduled to be signed between Chinese and Malaysian companies had to be postponed due to Hu''s tight schedule," OSK Research said.
"As the agreements, memoranda of understanding and project awards in principle have been either already built into expectations or were not specific enough in details, there was a sense of disappointment in the market as no new exciting awards and contracts were mentioned," it said.
"We feel that the visit has opened up a vista of future cooperation between China and Malaysia, with Malaysian companies likely to gain better access into the China market."
OSK Research believes that the postponed signing of certain contracts will eventually see fruition, recommending companies with exposure to China such as Hong Leong Bank, Parkson, MMC, Genting, Wah Seong and Kawan Food, among which stand to gain from warmer ties. -- Bernama __________________
No comments:
Post a Comment