Singapore-listed Koh Brothers Eco Engineering Limited has announced a transformative S\$313.9 million contract awarded by the Land Transport Authority (LTA) to its wholly-owned subsidiary, Koh Brothers Building & Civil Engineering Contractor (Pte.) Ltd. (KBCE). The contract involves the design and construction of a new multi-storey bus depot at Lorong Halus, slated to commence on 6 January 2025 and conclude by 2029. This project is a significant milestone for Koh Brothers Eco, enhancing its visibility in the infrastructure sector and boosting its order book to approximately S\$899.7 million.

Key Highlights of the Project

• The Lorong Halus Bus Depot will feature a four-storey main depot building with a minimum parking capacity of 550 buses.
• Facilities include administrative offices, technician workshops, operational areas, storage spaces, and workshop bays.
• Road improvement works such as new road construction, road widening/realignment, and signalised traffic intersections will also be undertaken to facilitate seamless vehicle movements.
• KBCE will handle all aspects of the project, including architectural design, civil and structural works, mechanical and electrical systems, and depot-specific equipment supply and installation.

Strategic Implications for Koh Brothers Eco

This contract is expected to solidify Koh Brothers Eco’s reputation as a leader in sustainable engineering solutions and infrastructure development. The project adds to the Group’s robust portfolio of ongoing developments, which includes:

• A S\$77.6 million contract for Sport Singapore’s Toa Payoh integrated development.
• A S\$200.7 million MEICA contract with PUB for the Tuas Water Reclamation Plant.
• A S\$186 million contract with HDB for the Kallang Integrated Development, executed in partnership with LBD Engineering Pte Ltd.

CEO’s Statement and Strategic Growth

CEO Paul Shin expressed gratitude towards the LTA for entrusting the company with this project, stating, “We are pleased to have secured this bus depot project to support the Singapore bus industry. With this contract, we aim to ensure smooth execution and maintain a healthy order book to support long-term sustainable growth.”

He further highlighted Koh Brothers Eco’s commitment to strategically tendering for projects where it holds a competitive advantage, leveraging its A1 BCA grading to tender for projects of unlimited value.

Track Record and Capabilities

The Group’s subsidiary, KBCE, boasts a rich history and extensive expertise in both building and civil engineering projects. Its notable infrastructure works include the Punggol Waterway, Marina Barrage, Downtown Line 1 Bugis Station, and the Changi Water Reclamation Plant. Additionally, its joint venture with Samsung C&T Corporation secured a landmark S\$1.12 billion project for Changi Airport’s three-runway operations development.

KBCE’s strong track record and A1/BCA L6 grading position it well for public sector projects of unlimited value, making it a trusted partner for agencies like HDB, PUB, LTA, and Changi Airport Group.

Shareholder Considerations

With its order book now nearing S\$900 million, Koh Brothers Eco is well-positioned for sustainable growth and long-term profitability. This latest contract with LTA is likely to boost shareholder confidence and could positively affect share value. Investors should also note the Group’s strategic focus on tendering for high-value projects, which aligns with its strengths and market positioning.