Construction companies to bid for RM11bil worth of contracts in the state
KUCHING: Sarawak’s major construction-based companies are in focus ahead of the impending award of contracts for the state-funded mega infrastructure projects.
The projects are the Sarawak coastal highway, second state trunk road, water supply and electricity connectivity.
Chief Minister Datuk Abang Johari Tun Openg has announced the Sarawak government’s allocation of some RM11bil to finance the infrastructure projects for this year and in 2020.
Naim Holdings Bhd, KKB Engineering Bhd, Hock Seng Lee Bhd (HSL) and Cahya Mata Sarawak Bhd (CMS) are seen as the front-runners for the projects. They have attracted investors’ interest post the Chinese New Year celebration.
Naim, KKB, HSL and CMS are the main contractors of the on-going RM16bil Pan Borneo Highway project. Most of them are teaming up with the country’s leading construction firms to bid for the new contracts.
Naim, according to its managing director Datuk Hasmi Hassan, is teaming up with Gamuda Bhd to bid for the Sarawak coastal highway and second trunk road project. Naim and Gamuda are joint venture partners in undertaking one of 11 Pan Borneo highway work packages
KKB’s joint venture partner in the Pan Borneo highway project is WCT Holding Bhd. The KKB-WCT JV have been pre-qualified for both the Sarawak coastal highway and second trunk road project.
KKB, which is Sarawak’s sole steel water pipe manufacturer, has also tendered for the new water supply project under the state water grid. Besides construction, the company is expected to benefit from the supply of the pipes to other contractors who get the job.
HSL managing director Datuk Paul Yu Chee Hoe has also said his company was eyeing for jobs in both coastal road and trunk road projects as well as contracts associated with the state water grid.
CMS’s joint venture partner in Pan Borneo highway project is Bina Puri Holdings Bhd.
“The early work packages of the Sarawak coastal highway project are expected to be awarded in the coming weeks.
“Open tender for three of the packages were carried out in November, 2018 and two more last month. Evaluation of the bids is expected to take between one and two months as the project is to be fast-tracked,” an industry source told StarBiz.
The first three work packages tendered out are the proposed construction of Pasi road to Sibu/Tanjung Manis road, including Batang Rejang bridge, in Sarikei division, Muara Lassa bridge in Mukah division and Bintulu-Jepak bridge crossing Kuala Kemena in Bintulu division.
The fourth and fifth work packages, bidding of which commenced last month, are the proposed construction of Batang Saribas bridge in Betong Division and Batang Paloh bridge in Mukah division.
The proposed Sarawak coastal highway spans some 900km from Sematan in southern Sarawak to Miri. The second trunk road will provide shorter routes to the main trunk road, link up the Pan Borneo highyway and coastal road network.
The second trunk road is divided into three sections, the first being a 112km single carriageway from Kota Samarahan to Roban, Betong division (existing road distance is 155km).
The second section involves a 94km single carriageway to link Sebuyau and Sri Aman/Betong and the third will involve the upgrading and extension of the existing two-lane carriageway from Jalan Kelupu in Bintangor to Lanang Bridge in Sibu.
For the second trunk road project, companies have been invited to bid for some 15 components of three main work packages from January to March. Most of the components are new bridge projects over the many rivers in southern and central Sarawak regions.
The sources noted that contracts for the state water grid project (total of 247 contracts) have been awarded progressively since late last year. Most of the contracts are rural-based and in stressed areas.
The contracts included the construction of new water treatment plants, distribution system, pipe replacement and upgrading works of existing facilities.
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