HSS Engineers Berhad announced that its wholly owned subsidiary, HSS Engineering Sdn Bhd, in a joint venture has
secured its largest ever contract worth USD315.9 million (equivalent to RM1.5 billion).
The contract involves providing Project Management Consultancy and Supervision Services for the Baghdad Metro rail system in Iraq’s capital. The estimated services fee is divided into two components: the Project Management Scope and the Construction Supervision Scope, at 0.6% and 1.2% of the total estimated construction costs, respectively. The entire construction cost of the project is valued at USD17.5 billion.
To kick start the project, the JV will receive an advance payment of 15% for project management, totaling USD15.8 million (equivalent to RM74.5 million). It was awarded by the Mayoralty of Baghdad to a JV company comprising HSS Engineering
Sdn Bhd and UAE-registered Consultant HSS, LLC (“CHSS”), entails the JV providing project management and supervision services for the Baghdad Metro. CHSS has been a long-standing partner of HEB, collaborating on multiple engineering consultancy projects in the Middle East.
HSSE and CHSS each hold a 50% equity stake in the JV. The USD17.5 billion Baghdad Metro is a national transformative project that aims to provide a sustainable and efficient mass transit solution to the capital’s residential population of over eight million. The five-year undertaking entails the construction of a comprehensive seven-line, 148-km driverless metro network across 64 stations that will traverse underground, surface and elevated sections for seamless city-wide connectivity.
HSS said the project attracted significant international interest, with multinational corporations from China, Germany, Italy, Spain, and Qatar submitting their prequalification to become the Design, Finance, Build, Operate, Maintain, and Transfer proponents.
