KUALA LUMPUR, July 1 (Bernama) -- Engineering and project management consultant HSS Engineers Bhd's (HEB) wholly owned subsidiary HSS Engineering Sdn Bhd (HSSE) has secured a joint venture contract worth US$315.9 million (RM1.5 billion), its largest ever.
The contract provides project management consultancy and supervision services for Iraq’s Baghdad Metro rail system, a statement said today.
The Mayoralty of Baghdad awarded the contract to a JV company comprising HSSE and UAE-registered Consultant HSS, LLC (CHSS), HEB’s partner. They have collaborated on multiple engineering consultancy projects in the Middle East.
HSSE and CHSS each hold a 50 per cent equity stake in the JV.
In a statement, HEB said the JV will receive a 15 per cent advance payment for project management, totalling US$15.8 million (RM74.5 million).
"The estimated services fee is divided into two components, namely, the project management scope and the construction supervision scope, at 0.6 per cent and 1.2 per cent of the total estimated construction costs, respectively," it said.
According to the statement, the project’s construction cost is US$17.5 billion.
The five-year contract commenced in July 2024 and is scheduled for completion by May 2029.
The contract entails the construction of a comprehensive seven-line, 148-kilometre driverless metro network across 64 stations that will traverse underground, surface and elevated sections for seamless city-wide connectivity.
Executive vice-chairman Tan Sri Kuna Sittampalam said HEB will play a pivotal role in the groundbreaking endeavour, which is expected to usher Baghdad into a new era of seamless connectivity within the Iraqi capital to catalyse urban growth and economic prosperity.
"Helmed as a cornerstone of Iraq’s national development strategy, we are committed to upholding our brand of the highest standards in the Baghdad Metro undertaking.
"This win, secured amidst intense competition across multiple countries, is a testament to our abilities. It holds tremendous significance for the group's global portfolio," he said.
-- BERNAMA
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