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CNA Group unit inks letter of intent for US$70m contract in Ho Chi Minh City

Mainboard-listed CNA Group's wholly-owned subsidiary, CNA-HTE Vietnam Co, has signed a letter of intent with Vietstar Airlines Multirole Corporation for a US$70 million mechanical, electrical and plumbing contract for a terminal complex in Vietnam.

Located on a 180,000 square metre (sqm) site in Ho Chi Minh City, the terminal is expected to be completed in some 18 to 20 months and will start operating by early 2017.

The terminal will consist of 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 said in a release to the Singapore Exchange.

CNA Vietnam will provide the mechanical, electrical and plumbing, system integration as well as the supply and installation of terminal equipment.

CNA said it is also mulling over the possibility of equity participation in the 30-year airport concession, to secure long-term recurring income opportunities.

CNA's group chief executive, Michael Ong, highlighted: "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."