HSL-led consortium wins RM1.7b Pan Borneo Highway contract

BINTULU, 6 Feb -- CABARAN... Pandangan udara lokasi kawasan pembinaan jajaran Lebuhraya Pan Borneo simpang Nyabau-Bakun Sibu-Bintulu yang bertanah lembut dan berpaya, sekaligus menjadi cabaran kepada pihak kontraktor untuk melaksanakan kerja pembinaan, yang dirakamkan semasa Jelajah Pan Borneo bersama Menteri Kerja Raya Datuk Seri Fadilah Yusof hari ini. -- fotoBERNAMA (2016) HAK CIPTA TERPELIHARA

KUALA LUMPUR: Hock Seng Lee Bhd (HSL) and Dhaya Maju Infrastructure (Asia) Sdn Bhd have jointly clinched a RM1.71bil contract to develop and upgrade a stretch of the proposed Pan Borneo Highway in Sarawak.

In a filing with Bursa Malaysia on Friday, the Kuching-based engineering and construction company said the unincorporated joint venture (JV), in which it will own 70% equity interest, was awarded works for the Bintangor junction to Julau junction and Sibu Airport to Sungai Kua Bridge (including Batang Rajang Bridge).

The scope of works includes earthworks, piling, drainage works, road works, interchanges, bridges and its related mechanical and electrical works.

HSL said the project, to be completed in 51 months, was expected to contribute positively to the earnings and net assets of the group as the project progressed during the contract period.

The job was awarded by Lebuhraya Borneo Utara Sdn Bhd, the Federal Government’s appointed project delivery partner to design, implement, supervise and manage the development of the Pan Borneo Highway project on the Sarawak side.

HSL said the transaction would not have any effect on the company’s share capital and substantial shareholdings.

At a national-level Chinese New Year celebration in Sibu last month, Prime Minister Datuk Seri Najib Tun Razak said he would return to Sibu in April to launch the above stretch of the highway. 
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Last week, Kuching-based Zecon Bhd had announced to the bourse that its JV with Kimlun Sdn Bhd had bagged a RM1.46bil contract to develop and upgrade the 75km stretch from Serian roundabout to Pantu junction in Sarawak.

Zecon, which has a 70% stake in the JV company to be incorporated, said the contract was for a duration of 48 months from the date of the letter of award (March 10).

On Monday, the prime minister gave his assurance that Sarawak’s section of the toll-free Pan Borneo Highway, to cost RM16bil, would not be affected due to the slowing economy.

He was speaking in Kuching when launching Package Three of the highway which was won by the Zecon-Kimlun JV.

The total length of the Pan Borneo Highway is reported to be 2,239km. The construction of the 1,090km Sarawak section is divided into 12 packages.

The earlier packages awarded were for the 43km Nyabau-to-Bakun stretch and 33km Telok Melano-to-Sematan stretch. The entire Sarawak section of the highway is targeted to be completed by 2021. 

Meanwhile, the Sabah section of the highway is expected to cost about RM13bil.

HSL shares closed 7 sen higher on Friday at RM2.10, with 12.15 million shares changing hands.