CNA Group signs letter of intent for $95.8 million Vietnam airport terminal contract

SINGAPORE - Mainboard-listed CNA Group Ltd said on Thursday that its that its wholly-owned subsidiary, CNA-HTE Vietnam Co. Ltd. has signed a letter of intent with Vietstar Airlines Multirole Corporation for a US$70 million (S$95.8 million) mechanical, electrical and plumbing (MEP) contract for an airport terminal in Vietnam.

The terminal for Vietstar is on a 180,000 sq metres site in Ho Chi Minh City, Vietnam. It is expected to be completed in approximately 18 to 20 months and to be operational by early 2017.

The terminal will comprise a 39,500 sqm passenger terminal building, a cargo terminal building and a multi-purpose warehouse, as well as ancillary buildings such as a sewerage treatment plant.

CNA Vietnam's scope will be the provision of MEP, system integration and supply and installation of terminal equipment services.

The current Tan Son Nhat International airport capacity has been recently expanded from 20 million to 25 million passengers per annum as it was running at over capacity. This new terminal is designed for 9 million passengers per annum handling capacity.

CNA is also exploring the possibility of equity participation in the 30 year airport concession, to secure long term recurring income opportunities.

Said Mr Michael Ong, CNA's group CEO and president: "This contract spotlights our airport expertise and our niche as the regional specialist for airport-related building systems."

"We continue to see our continuing strong position in the transport and infrastructure sector in Vietnam and hope to build on this momentum by securing more airport-related projects in the region."

The contract is expected to have a material impact on the results for the financial year ended December 31, 2015.