KUALA LUMPUR: Engineering and construction group Vizione Holdings Bhd has bagged a RM170 million construction project in Kota Kinabalu.

Vizione said the design and build contract awarded by Laju Damai Sdn Bhd involves a block of 29-storey serviced suites totalling 664 units, two blocks of three-storey shop offices comprising 38 units, a carpark block, mechanical, electrical and external works.

The project will enlarge the group's order book and provide a steady revenue stream for Vizione over the next three financial years, its Bursa Malaysia filing said. The project, to start on March 1, 2020, is expected to be completed on May 31, 2023.

In a separate statement, Vizione managing director Datuk Ng Aun Hooi said the group's current outstanding order book is at RM2.7 billion and that the projects in final negotiations are expected to at least double the existing outstanding order book in the near future.

“This design and build contract is the first of these projects expected to replenish and increase our order book. These projects include constructing hospitals, roads, dams, waste management facilities, mixed and industrial properties, as well as flood mitigation and sewerage construction works,” he said.

“Further, some of the projects in the order book, delayed earlier due to project owners amending the project mix to cater to changing market conditions, are now expected to commence towards the second half of 2020 pending the finalisation of revised development orders.

“As such, we see our earnings will improve substantially going forward.”

Vizione shares closed unchanged yesterday at 87 sen, with a market capitalisation of RM509.9 million.