By Sharen Kaur
sharen@nstp.com.my
Business Times (Malaysia)
CONSTRUCTION and engineering firm Muhibbah Engineering (M) Bhd plans to develop the 200ha allocated to it by the Cambodian Government into a free trade industrial zone.
Group managing director Mac Ngan Boon said the Cambodian Government is currently in talks with the US Government for a free trade agreement.
The Cambodian Government had offered the land to Muhibbah as part of the airport concession held by the group.
Muhibbah holds the concession of the Phnom Penh International Airport, the Siem Reap International Airport and the Sihanoukville International Airport since 1995 via its 30 per cent unit, Societe Concessionnaire De L'Airport (SCA).
The rest of the stake in SCA, formed in October 1995, is held by Muhibbah's French partner and world leader in construction and concessions, the Vinci Group.
Mac told Business Times that the development of the land, which is located next to the Sihanoukville airport, will complement Cambodia's air and sea cargo activities.
He said new investments will bring together industrialists who will further spur the growth of the tourism industry.
"New business investments are already pouring in and Muhibbah and its associates are advising the Cambodian Government on how to improve the two sectors," said Mac.
Mac said a Malaysia-Thai joint venture company has plans to build a new cement factory near the Sihanoukville airport and there is another player that will establish a cement production facility within the industrial area.
He said US-based oil firm Chevron has also started oil exploration works in the area while a Chinese oil and gas firm has agreed to invest in a refinery.
He added that there will also be an export terminal located in the area for iron trading by another Chinese firm.
"There are a lot of businesses coming into Cambodia on top of tourism. The Sihanoukville airport, which will be developed for a total of US$250 million (RM920 million) by 2009, will be the hub for all these activities," said Mac.
Meanwhile, Mac said SCA has the avenue to increase airport taxes at the three airports and it may likely increase the taxes, which are currently at US$25 (RM92), in five years.
SCA had established Cambodia Management Airport Services (CAMS) to manage the three airports. Muhibbah's fee is for management and technical assistance rendered via SCA.
It is firmly believed that the fee is about 4.5 per cent of earnings before interest, tax and amortisation (Ebita).
Previously, the management contract for the Phnom Penh and Siem Reap airports was held by Malaysia Airports Bhd and Aeroports de Paris but was taken over by CAMS in 2005.
"CAMS will give Muhibbah the expertise to manage other airports in neighbouring countries within the next three years," said Mac.
Muhibbah is currently working on US$20 million (RM73 million) worth of contracts to build bridges and a US Embassy in Cambodia and it expects to secure more new contracts over the next 18 months.
Group managing director Mac Ngan Boon said the Cambodian Government is currently in talks with the US Government for a free trade agreement.
The Cambodian Government had offered the land to Muhibbah as part of the airport concession held by the group.
Muhibbah holds the concession of the Phnom Penh International Airport, the Siem Reap International Airport and the Sihanoukville International Airport since 1995 via its 30 per cent unit, Societe Concessionnaire De L'Airport (SCA).
The rest of the stake in SCA, formed in October 1995, is held by Muhibbah's French partner and world leader in construction and concessions, the Vinci Group.
Mac told Business Times that the development of the land, which is located next to the Sihanoukville airport, will complement Cambodia's air and sea cargo activities.
He said new investments will bring together industrialists who will further spur the growth of the tourism industry.
"New business investments are already pouring in and Muhibbah and its associates are advising the Cambodian Government on how to improve the two sectors," said Mac.
Mac said a Malaysia-Thai joint venture company has plans to build a new cement factory near the Sihanoukville airport and there is another player that will establish a cement production facility within the industrial area.
He said US-based oil firm Chevron has also started oil exploration works in the area while a Chinese oil and gas firm has agreed to invest in a refinery.
He added that there will also be an export terminal located in the area for iron trading by another Chinese firm.
"There are a lot of businesses coming into Cambodia on top of tourism. The Sihanoukville airport, which will be developed for a total of US$250 million (RM920 million) by 2009, will be the hub for all these activities," said Mac.
Meanwhile, Mac said SCA has the avenue to increase airport taxes at the three airports and it may likely increase the taxes, which are currently at US$25 (RM92), in five years.
SCA had established Cambodia Management Airport Services (CAMS) to manage the three airports. Muhibbah's fee is for management and technical assistance rendered via SCA.
It is firmly believed that the fee is about 4.5 per cent of earnings before interest, tax and amortisation (Ebita).
Previously, the management contract for the Phnom Penh and Siem Reap airports was held by Malaysia Airports Bhd and Aeroports de Paris but was taken over by CAMS in 2005.
"CAMS will give Muhibbah the expertise to manage other airports in neighbouring countries within the next three years," said Mac.
Muhibbah is currently working on US$20 million (RM73 million) worth of contracts to build bridges and a US Embassy in Cambodia and it expects to secure more new contracts over the next 18 months.
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