MAINBOARD-listed infrastructure and civil engineering company OKP Holdings on Monday (Nov 8) announced that it has secured a contract worth S$39.9 million from the Public Utilities Board (PUB).

 

The contract is for drainage improvement works at the Benoi Road outlet drain. OKP' s subsidiary, Eng Lam Contractors Co, will be involved in the construction of reinforced U-drains and an outfall structure with riprap scour protection connecting to Benoi Basin.

 

The company will also reconstruct an existing maintenance access for the drainage reserve with an entrance access from Benoi Road, as well as the replacement of an existing footbridge.

 

Commencing on Dec 6, 2021, the project is expected to be completed in 3 years' time.

 

With the new contract, the group' s current net construction order book amounts to S$360.8 million, with contracts extending till 2025.

 

These include other PUB contracts such as drainage improvement works for Sungei Selarang and improvement works for West Coast Road outlet drain No 6.

 

" We are encouraged by the trust and confidence shown in our drainage/sewage expertise, and will focus on the smooth delivery of all projects," group managing director Or Toh Wat said.

 

INFRASTRUCTURE and civil engineering company OKP Holdings has clinched a contract from PUB worth S$57.2 million for the Deep Tunnel Sewerage System (DTSS) project, the company said in a bourse filing on Wednesday.

 

With this contract, OKP' s current net construction order book stands at S$320.9 million, with contracts extending up to 2025.

 

For this project, OKP' s subsidiary Eng Lam Contractors will be involved in the construction of link sewers consisting of various internal diameters of high-density polyethylene-lined reinforced concrete pipes and manholes in Commonwealth Avenue West, Clementi Avenue 2 and University Flyover.

 

The contract will commence on Sept 21, and is expected to be completed by June 20, 2025.

 

OKP is also currently involved in another DTSS Phase 2 project, and recently secured a project involving drainage improvement works in Sungei Selarang which includes the construction of Contiguous Bored Pile wall, ground improvement, reinforcement concrete, and ancillary activities.

 

Group managing director Or Toh Wat said: " We are pleased to secure another contract from PUB, following the award of the Sungei Selarang upgrading project last month.

 

" We are grateful for the confidence in our specialisation and expertise in this field and will commit to upholding the high standards of our work processes and deliverables."

 

OKP Holdings&rsquo 51%-owned subsidiary, Raffles Prestige Capital, has exercised the option to purchase the properties at 69 and 71 Kampong Bahru Road from Pek Geok Khee and Aw Jieh Yui Midori for a consideration of $12.38 million.

The properties have a freehold tenure and comprise a pair of adjoining two-storey conservation shophouses.

 

They occupy a land area of around 2,343 sq ft and have a gross floor area (GFA) of 5,947 sq ft.

 

The properties are being purchased for investment purposes.

The open market value as at April 20 is $12.38 million, according to the valuation by RHT valuation, commissioned by OKP Holdings.

 

The option money of $123,800 has been paid upon the grant of the option to purchase, along with an additional sum of $495,200.

 

The balance sum of $11.76 million will be paid upon completion, which is within three months of the exercise of the option.

 

The properties were sold subject to the existing tenancies and sold &ldquo contemporaneously and jointly&rdquo by the vendors (Pek and Aw) and is subject to &ldquo all restrictive and other covenants, terms and conditions, planning or development or redevelopment conditions and restrictions, party wall rights, easements and reservations affecting the same&rdquo .

 

BUILDER OKP Holdings said the group is not aware that it has been banned from or penalised when tendering for government contracts after its involvement in a viaduct collapse accident in 2017.

 

It was addressing questions received from shareholders ahead of the mainboard-listed firm' s annual general meeting by electronic means on April 26.

 

A shareholder observed the " quite small" contracts it has clinched from the public sector, and that it has not participated in the " biggest" road building project North South Corridor since the worksite mishap.

 

The shareholder questioned if this has to do with OKP' s involvement in the Pan-Island Expressway viaduct collapse that left one worker dead and 10 injured, and resulted in its reputational damage and a dent on its turnover, profitability and share price.

 

OKP' s wholly-owned unit Or Kim Peow Contractors was found guilty of failing to take reasonable measures to ensure the safety of its employees in the accident, and the prosecution has recently urged the court to impose the maximum fine of S$1 million.

 

However, OKP denied that the group is facing any ban from the government, and attributed the lower revenue from the construction and maintenance segments mainly to the pandemic-induced disruption in construction activities in compliance with the government' s measures.

 

OKP reported net earnings of S$3.3 million for 2020, compared to a net loss of S$378,000 the year before, while its revenue dipped to S$69.6 million from S$81.4 million. Its share price has been on a decline since the accident when it was trading at S$0.42 it closed at 20 Singapore cents on Friday, up 1.1 cents.

 

It assures its shareholders that it will be strengthening capabilities in its core civil engineering business in order to maintain its status as a " leading" civil engineering contractor across various industries.

 

Furthermore, regular checks have been made to ensure that processes adhere to industry standards as well as engaging experts to improve its control systems after the accident, OKP said in a regulatory filing on Saturday.

 

It also noted the residential projects Essence at Chong Kuo Road (near Sembawang Road) and Phoenix Residences at Phoenix Road in Bukit Batok were launched one year apart, and therefore shareholders should consider this when comparing one had sold over 90 per cent with another that is " not moving much" .

 

Nonetheless, OKP said, it will step up marketing efforts to engage homebuyers through both physical and virtual channels for its projects.