New shipyard turnkey construction contract awarded

Sembcorp Marine has awarded the turnkey construction contract for Phase I of the New Yard Development project to Zhen Hua (S) Engineering Pte Ltd for a total contract value of S$443.25 million.

The contract is part of the S$750 million projected costs for Phase I of the New Yard Development announced on 4 November 2009 and relates to a land area of 73.3 hectares located at Tuas View Extension on the west of Singapore. This turnkey construction contract is for the design and construction of the proposed 4 VLCC drydocks, wharves, quays, piers and other ancillary works for the New Yard Phase I Development project.

Construction work is expected to commence immediately upon the signing of the construction contract today with completion scheduled for May 2013. Zhen Hua (S) Engineering Pte Ltd is a subsidiary of China Harbour Engineering Company Ltd (CHEC), one of the largest state-owned enterprises in China.