KUALA LUMPUR: HSS Engineers Bhd's (HEB) unit, HSS Engineering Sdn Bhd, has won its largest contract to-date worth US$315.9 million (RM1.5 billion) for the Baghdad Metro rail system, via a joint venture.
The contract is for project management, consultancy and supervision services.
The contract was awarded by the Mayoralty of Baghdad, to a JV equally owned by HSS Engineering and UAE-based Consultant HSS, LLC (CHSS).
Each party holds a 50 per cent stake in the JV.
In a statement HEB said CHSS has been a long-standing partner of HEB, collaborating on multiple engineering consultancy projects in the Middle East.
The JV will receive an advance payment of US$15.8 million (RM74.5 million) to kick-start the project, said HSS Engineers in a statement today.
The Baghdad Metro project is a major initiative aimed at providing a modern and efficient mass transit system for Baghdad's eight million residents.
The five-year project will include a seven-line, 148-km driverless metro network with 64 stations, featuring underground, surface, and elevated sections. The total construction cost is estimated at US$17.5 billion.
The consultancy services for the project are divided into two parts: Project Management and Construction Supervision, accounting for 0.6 per cent and 1.2 per cent of the total construction costs, respectively.
The project has attracted interest from international companies in China, Germany, Italy, Spain, and Qatar, all vying for roles in the design, financing, building, operating, maintaining, and transferring of the metro system.
HEB executive vice chairman Tan Sri Ir. Kuna Sittampalam said the project will bring modern connectivity to Baghdad, spurring urban growth and economic prosperity.
"This contract highlights HEB's ability to deliver world-class engineering and project management services," he added.
It also aligns with Malaysian Prime Minister Datuk Seri Anwar Ibrahim's efforts to strengthen ties with Iraq, supported by the recent reopening of the Malaysian Embassy in Baghdad after a 20-year closure.
Construction is scheduled to begin in July 2024 and is expected to be completed by May 2029.
This contract adds to HEB's list of international projects, which include the Phnom Penh-Bavet Expressway in Cambodia, the Railway Connectivity Improvement Project in Bangladesh, and Phase 1B of the Jakarta Light Rail Transit in Indonesia.
The company's share price was up 2 per cent to 97.5 sen a share, giving it a market capitalisation of RM495.8 million.