Koh Brothers holds 30 per cent stake in JV handling Changi's 3rd runway works

Koh Brothers holds 30 per cent stake in JV handling Changi's 3rd runway works
Francis Koh, Koh Brothers Group's CEO.
PHOTO: The Business Times

KOH Brothers, via a wholly owned subsidiary, has a 30 per cent stake in the joint venture (JV) which won the tender for the first package of works to develop a third runway at Changi Airport.

Its JV partner is Samsung C&T Corp, while the subsidiary is Koh Brothers Building & Civil Engineering Contractor. Including its share of the project, mainboard-listed Koh Brothers' current construction order book will rise to S$632 million.

Last week, airport operator Changi Airport Group (CAG) announced that it has awarded the S$1.12 billion contract to the JV as part of plans to transition to a three-runway system by the early 2020s. The competitive tender saw 10 bidders throwing their hats into the ring.

The additional capacity from the third runway - versus the current dual-system which serves the three Terminals and upcoming Terminal 4 - will take Changi to its next phase of growth beyond this decade.

To cater to continued growth and the upcoming Terminal 5 in the mid- 2020s, CAG is converting an existing third runway - currently used by the military - for joint civil-military use.

The JV will extend this runway to handle larger aircraft and develop supporting taxiways to connect Runway 3 to the rest of Changi Airport.

In addition, the JV works will include security fencing and perimeter roads, mechanical and electrical works, and supporting works such as road diversions. It will also develop ancillary buildings such as airfield lighting control centres, fire station and rescue facilities.

Koh Brothers will handle the construction of drainage and culvert systems to ensure the runway and taxiways are free of surface water and to prevent flooding. Koh Brothers will also set up and operate batching plants to supply the concrete needed for the project.

Managing director and group chief executive of Koh Brothers, Francis Koh, said: "We have crossed a significant corporate milestone with this project, representing the largest contract secured by the group to-date. We will tap on our strength in civil engineering works and specialised capabilities in drainage work for the upcoming construction of the runway's canals and drainage systems."

This is the second project that the Koh Brothers has secured from CAG, following the construction of a retention pond at Changi Airport.

This article was first published on October 29, 2015.
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