Chip Eng Seng wins S$32.9m contract for HDB upgrading projects

THE Housing and Development Board (HDB) has awarded a S$32.9 million contract to Chip Eng Seng Corp's wholly-owned subsidiary, CES Engineering & Construction.

The contract relates to the design and build of upgrading projects for the following precincts in Singapore: Serangoon Avenue 1 / Central, Blocks 401 to 414 and Blocks 415 to 427; Lengkong Tiga, Blocks 101 to 116; and Ubi Avenue 1, Blocks 301, 302, 304, 305 and 306.

Chip Eng Seng said in a bourse filing on Tuesday evening that the contract will be carried out in two parts, with the first involving the approval of the design and the printing of polling materials and brochures.

The second part will be the undertaking of the upgrading works in the units of the abovementioned blocks. For this portion, the time for completion is 18 months for the Serangoon and Lengkong Tiga precincts, and nine months for the Ubi area.

Chip Eng Seng said that work for the second part of the contract will commence upon written instruction from HDB.

The contract is expected to contribute positively to Chip Eng Seng's earnings per share and net tangible assets for 2021.

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Its mainboard-listed stock closed flat at S$0.43 on Tuesday, before the announcement.

Separately, under the company's education business segment, Chip Eng Seng on Monday announced it had agreed to terminate its kindergarten collaboration with British firm Repton International Schools on March 31, 2021.

Both parties had planned to establish a chain of premium international kindergartens in the Asia-Pacific up to Dec 31, 2048.