Wearnes Automotive Group's local unit Swedish Marque Sdn Bhd will cease as a Volvo dealer in Malaysia by June 30, leaving MBM Resources Bhd subsidiary Federal Auto Cars Sdn Bhd as the sole dealer in Peninsular Malaysia. Wearnes Automotive is the largest distributor of Volvo vehicles in Southeast Asia. However, Federal Auto, which has been selling Volvos in Malaysia since 1960, has had the lion's share of the Volvo market. According to MBM  Resources CEO Looi Kok Loon, Federal Auto last year sold 579 Volvo units in Malaysia, taking 70% of the market share. MBM's grasp on Volvo sales could also prove to be very lucrative. Volvo, which is now owned by Chinese carmaker Geely Group, plans to expand capacity in the region and expects a turnaround in the current lacklustre demand for its products in Malaysia.  ' The Edge

The Ipoh-Padang Besar Electrified Double Track project (EDTP) has hit a snag over price due to cost overrun and the main contractor may ask RM1.5bil in variation order (VO) claims from the  government. It is understood that MMC-Gamuda Joint Venture Sdn Bhd, the main contractor for the project, has also asked the government to extend the time to complete the job to 2015 or 2016. Sources said the government has yet to approve the extension request. MMC-Gamuda was awarded the northern sector EDTP contract in December 2007 for RM12.5bil. The job was initially slated for completion in January 2013, but due to impending land acquisition issues, the government has given an extension for the project completion until end-2014. A source said the total project cost is expected to escalate to about RM14.0bil because of the two-year delay. It is believed that MMC-Gamuda will submit the VO claims to the government later. The source said there is already cost overrun for the project, which is halfway completed. The civil works are 70% completed, and the systems side, only 30%. There are still land issues and other unresolved matters on MMC-Gamuda JV's part. ' Business Times

Sarawak Energy Bhd (SEB) has dished out three more power transmission line projects for open bidding, including a 275kV line from Mambong near here to neighbouring West Kalimantan to facilitate the export of electricity to the Indonesian province. The 45km line will take 22 months to construct and tender for the project closes on July 2. The other two 275kV transmission lines will supply electricity from SEB Samalaju substation to OM Materials (Sarawak) Sdn Bhds proposed manganese and ferro alloy smelting plant and Japan's Tokuyama Corp polycrystalline silicon plant (phase II), both in Samalaju Industrial Park, Bintulu. Tenders for the Tokuyama (phase II) transmission line project are being evaluated. The 132kV transmission line to its phase I project is near completion. SEB is expected to award soon the contract for the construction of a 500kV backbone line stretching from Similajau, Bintulu to Kuching. It is now carrying out evaluations on the bidding companies. According to SEB chief executive officer Torstein Dale Sjotveit, the 500kV backbone line would cost about RM3.0bil. It is expected to be ready in 2014. Sjotveit had said recently that SEB would call for tenders to construct a proposed 600-MW coal-fired power station in Balingian, Mukah Division this year. SEB now owns a 270-MW coal-fired station in Mukah. He has said that SEBs 2012 priorities included accelerating the next round of power generation projects. - StarBiz

Source: AmeSecurities