Yu: ‘A number of the smaller projects, particularly infrastructure and building works in the Sarawak Corridor of Renewable Energy, are due for completion
KUCHING: Hock Seng Lee Bhd (HSL) will acquire additional tunnel boring machines (TBMs), plant and machinery to facilitate the implementation of two major sewerage projects worth over RM1bil, according to managing director Datuk Paul Yu Chee Hoe.
The construction firm invested some RM22mil in four advanced TBMs in 2010 to carry out the Kuching centralised sewerage project (package one).
The laser-guided TBMs facilitate the trenchless installation of an underground sewerage pipe system to ensure minimal environmental destruction.
HSL and its consortium partner, Kumpulan Nishimatsu, won the RM750mil sewerage project (package two) last year after completing the RM530mil package one.
Yu said package two was in the preliminary planning stages with site and soil investigation works being undertaken.
HSL, which has a 75% stake in the consortium, was awarded Miri’s wastewater treatment plant and sewer network project at a contract value of RM333mil about three months ago.
“The sewerage projects in Kuching and Miri, which contract period stretches to 2022 and 2021, respectively, will see HSL building upon its technical expertise in tunnel boring,” Yu said recently.
He described the sewerage and Pan-Borneo Highway project, of which HSL has secured a work package worth RM1.71bil, as the largest and most technically challenging job the company had managed.
Kuching’s centralised sewerage package two involves the construction and commissioning of a wastewater treatment plant, main, secondary and tertiary sewer lines, connection to properties, provision of process plant and equipment as well as related building, mechanical and electrical works.
The project, based on the Singapore model, is to collect grey and black water and pipe it underground to the treatment plant, where it is processed into clean water before being discharged back into the environment.
There are more than 2,800 properties, including commercial buildings and hotels, connected under package one.
The Miri project will cover earthworks, construction and commissioning of the wastewater treatment plant, sewer networks, intermediate pump stations as well as property connections.
Yu said HSL and its joint-venture partner, Dhaya Maju Infrastructure (Asia) Sdn Bhd, was progressing on the Pan-Borneo Highway project.
The package covers 75.97km of road and involves the construction of several interchanges and bridges including the 1.7km Durin Bridge over Rajang River in central Sarawak.
To facilitate the implementation of the highway and sewerage project, Yu said HSL had set up operation centres in Sibu and Miri, in addition to the usual site offices at project locations.
Yu said HSL had secured RM346mil worth of new contracts in its first quarter ended March 31, 2017 (Q1’17), bringing its order book to RM2.8bil, out of which RM2.4bil is unbilled.
In Q1’17, the construction outfit recorded a group pre-tax profit of RM15mil on a revenue of RM105mil against RM21.5mil and RM142mil respectively, in the previous corresponding quarter.
The property development sector contributed 13% to group bottom line in the quarter under review.
According to Yu, the company is undertaking more than 20 construction projects and nine property development projects.
“A number of the smaller projects, particularly infrastructure and building works in the Sarawak Corridor of Renewable Energy, are due for completion.
“The mega-projects (highway and sewerage) should move into a more active phase,” he added.