UEM Group mulls jobs in Vietnam, Cambodia

http://www.btimes.com.my/Current_News/BTIMES/articles/uemg1-2/Article/

UEM Group mulls jobs in Vietnam, Cambodia
By Mustapha Kamil and Shahriman Johari
Published: 2009/07/09

UEM Group Bhd has been offered huge projects in Vietnam and is also
mulling whether to accept a contract to build a bridge in Phnom Penh,
Cambodia.

The projects in Vietnam are worth a "few billion US dollars", chairman
Tan Sri Dr Ahmad Tajuddin Ali said in an interview in Kuala Lumpur
recently.

They are in Da Nang and Ho Chi Minh City, and work includes building
an airport and a port.

"It's so big that we may have to rope in other Malaysian contractors,"
Tajuddin said.

The bridge project in Cambodia is worth about US$100 million (RM356
million) and UEM is in the final stages of evaluating the job.

Vietnam has been a favourite destination for Malaysian builders, with
companies like SP Setia Bhd and Gamuda Bhd already having a presence
as they seek to grow profits amid a slowing home market.

UEM Group has ventured abroad through its construction arm UEM
Builders Bhd, mainly to countries like India and Qatar.

Tajuddin also said that UEM was confident of defending itself against
a legal suit from the Qatar Public Works Organisation.

"We have received from the Qatari authorities the certificate of
completion for the entire Salwa Road project. We have also got the
extension of time for the job to January 31 2009," he said.

Because of this, UEM Group will not make provisions for the suit. At
the same time, it also has a RM1 billion claim for work already done
for the same project.

It is understood that the Qatar Public Works Organisation is seeking
damages, reportedly about 878.3 million Qatari riyal (RM880 million),
against design consulting engineer Parsons International Ltd, UEM and
Qatar Insurance Co over work on the Salwa International Road.

UEM has been named as the second defendant in the suit, Tajuddin said.
.