PT Wijaya Karya Tbk (IDX: WIKA), state-owned construction firm, joined a Philipines' light railway transit (LRT) tender along with other competitor from Spain and Thailand - Photo by Light Rail Transit Authority

JAKARTA (TheInsiderStories)PT Wijaya Karya Tbk (IDX: WIKA), state-owned construction firm, joined a Philipines’ light railway transit (LRT) tender along with other competitor from Spain and Thailand, the official to the media on Wednesday (11/21). The project is estimating need costs around Rp 6 trillion (US$428.57 million).

A precast and ready mix concrete manufacturer, PT Waskita Beton Precast Tbk (IDX: WSBP) will joined the project to handle concrete plant. According to thedirector, Agus Wantoro the company’ part at the projects worth of Rp800 billion.

“If we win the tender, we believe, it will support our new contract target of Rp7.03 trillion in this year,” he said by adding until October 2019, Waskita Beton has booked a new contract Rp4.3 trillion.

Wantoro revealed, that the plan will be located in 7.5 hectares areas, which consist of 5.5 hectares for stock yard and other for plant building. Beside Philipines, he said, the manufacturer, also got beach safety’ contract from Singapore worth of Rp217 billion, by providing 150 thousand units of tetrapod in the project.

In Indonesia, the  also sees an opportunity in infrastructure building of new capital. Currently, he explained, the unit of PT Waskita Karya Tbk (IDX: WSKT), has 11.6 hectares plant in Penajam Paser Utara, East Kalimantan, which will have capacity of 250 thousand tons of box girder, PCI girder, CCSP, square pile, U ditch and pre-tension product. The plant is expected to be completed in the beginning of next year.

This plant was built to absorb market in the central and eastern regions of Indonesia, including the regional markets in Southeast Asia. The producer plans to expand the plant by having its own jetty to facilitate access to shipping precast products directly from the plant to other islands because it has a strategic location with Balikpapan Bay.

Waskita Beton expect the domestic contract Rp11.9 trillion in 2010. The company also eyes to raise the revenue Rp10 trillion and net profit of Rp1.1 trillion in the same year.

To finance the projects, recently, the company has issued bonds of Rp1.5 trillion. The funds from the bond issuance will be used for working capital of Rp500 billion and the rest will be used for debt refinancing.

The company also builds synergy with Waskita Group to develop business and new products such as spun pile, concrete electric poles and so on. The company also develops other new products such as facade and building precast.

Beside Philippines, WIKA also eyes an airport project in Taiwan with values around $700 million. The project need costs around Rp20 trillion ($49.64 billion). The tender process is expected to be carried out in December 2019.

Beside airport project, the builder also looking other projects like bridge and station. In addition, Wijaya Karya also expanded to other countries such as Malaysia, Uni Emirate Arab, and Africa. In Africa, the issuer preparing to build around $40 million liquid and bulk port terminal facilities in Zanzibar, Tanzania.

The company also received an offer to work on a mining project with four state-owned enterprises in Madagascar. The company also aimed to build of $250 million integrated business area in Senegal and of $66 million apartment building project in Ivory Coast.

Furthermore, Wijaya Karya targeted to handle projects with total values Rp20 trillion in Africa. Currently, the state-owned company has projects with total value Rp7.6 trillion.

Previouslu, in the meeting with Uganda’ Prime Minister Kirunda Muwabe, coordinating minister for maritime and investment affairs, Luhut Panjaitan, said the country interest to cooperate with the company for railway jobs with an estimated path length reaches 350 kilometers.

Similar interests, also came from Angola who plans to build a track or railway track along the 400 km. Then Zimbabwe with train tracks along the 98 km and Somalia for the construction of social housing as being worked on by Wijaya Karya in Algeria.

“We will soon further explore and assess the feasibility of the project plan of railway infrastructure in Africa, including working with PT INKA (Industri Kereta Api) and PT LEN,” said the CEO Tumiyana recently.

The third parties has formed Indonesian Railway Development Incorporated for Africa (IRDIA) consortium to capture the investment opportunity in African countries.

In the country, the company is targeting the acquisition of new contracts from a number of rail-based mass transportation projects such as mass rapid transit, light rail transit and loop line, toll road projects, buildings, electricity and energy security such as tank farms.

Until September 2019, Wijaya Karya has pocketed new contract of Rp25.7 trillion. Of this value, as much as 85.7 percent of the company’ new contracts came from the SOE and private sectors, 9.8 percent came from overseas projects and 4.5 percent came from the government.

For this year, the publicly listed company prepared capital expenditure Rp20 trillion and will continue to rise every year. Tumiyana viewed that WIKA actually, now coined the excellent capacity in terms of industries, steel, concrete, and asphalt which then support the construction and infrastructure as its main business.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com