Cahya Mata Sarawak Bhd's subsidiary sara Road Maintenance Sdn Bhd has been awarded a 15-year contract worth RM1.33bil by the Sarawak Public Works Department (JKR) for the maintenance of 3,873km of state roads.
The company is a subsidiary of PPES Works (S) Sdn Bhd, the main infrastructure arm of Cahya Mata Sarawak Bhd (CMSB). The contract was valued at RM88.8mil a year based on present rates.
The contract agreement was signed yesterday between Sarawak JKR director Hubert Thien and Sara Road Maintenance director Jamel Ibrahim. State Infrastructure Development and Communication Minister Datuk Wong Soon Koh witnessed the ceremony.
CMSB group chief executive officer David Berry said Sara Road Maintenance would not only repair and maintain all the state roads but would also the road markings, signages and street lighting.
Wong said the contract was awarded after Sara Road Maintenance had satisfactorily maintained 813km of state roads in Kuching and Samarahan divisions under a two-year pilot project.
He said the company had adopted some modern road maintenance technologies, like the recycling of existing materials for reuse in maintenance work, which could help to cut down on wastages.
Wong said as most of the old roads in Sarawak required rehabilitation and resurfacing, the government would like to see more innovative engineering technologies used to improve the efficiency in road management and maintenance.
Sara Road Maintenance said it would use internationally-recognised road maintenance management systems to repair and maintain road surfaces and furnishings under the contract.
Wong said the federal government was expected to implement a similar long-term privatisation of road maintenance for all federal roads in Sarawak soon.
He said the federal government had in 2000 awarded long-term contracts to several consortia for the maintenance of 11,300km of roads in the peninsula.