NWR targeting bigger projects
NAWARAT Patanakarn (NWR), a mid-sized contractor and listed firm, will focus more on larger-scale investment projects as part of its business diversification plan.
The move followed a relaxation of requirements for bidders, big and small, for the government’s multibillion-baht infrastructure projects – big and small firms alike.
“The new requirements … allow the company to have an opportunity to take part into the bidding for large infrastructure projects worth more than Bt10 billion,” said Pasan Swasdiburi, senior vice president of the new business and strategic planning department.
NWR is one of more than 10 contractors that have bought the bidding documents for three electric train projects – the Yellow, Pink and Orange lines. The projects’ combined investment value is Bt180 billion.
Bidding for Yellow, Pink lines
The bidding documents for the Yellow and Pink lines were set to be submitted by November 17 and the Orange Line by October 31.
In the past, there were only four contractors that were qualified to participate in the bidding for the government’s mega-investment projects.
“We’re trying to focus on contracting any larger scale jobs … Our new jobs will be electric train projects,” Pasan said.
He added that if the company had a source of funds and good partners, it could get big jobs |even though it was not a big contractor.
He said that the company was |in talks with foreign partners, forming a team to bid for the |train projects. He declined to |name the foreign firms.
Pasan said if the bidding rules were more open, the environment would be more competitive. He said the company currently had a backlog of jobs worth about Bt13 billion and potential jobs worth about Bt40 billion.
“If we get the new jobs [the train projects], this will be supplementary income,” he said.
Varied expertise
Apart from constructing the buildings, NWR also has expertise in the construction of seaports, airports, power plants and roads and bridges, including the installation of transmission lines.
Pasan said the company was trying to balance its jobs between small to large-scale government and private sector projects. Currently, 60 per cent of its jobs are with the government sector and 40 per cent with the private sector.
Of that total, about 90 per cent are construction jobs.
NWR develops house and condominium projects via both its subsidiary and joint ventures and it produces pre-cast concrete systems for the construction industry in its factories in Chon Buri and Yangon.
The company’s income from construction business accounts for 80 per cent of the total.
About 95 per cent is domestic income.
“Our vision is to become one of the top five contractors among listed companies in the next three to five years,” Pasan said, adding the country was currently in eighth or ninth place in the sector.
The top five contractors have |75 per cent of the market currently.
Pasan said NWR expected its sales this year to exceed the target of Bt7 billion.
