Construction is beginning to pick up speed as indicated by the string of major infrastructure contracts being awarded recently. The most recent project to be awarded is the Sungai Besi-Ulu Kelang Expressway (Suke) following the Pan Borneo Highway.
Only yesterday, the concessionaire of the Suke project presented both Jaks Resources Bhd and Zelan Bhd with the construction contracts.
In June, the RM9 billion 37km light rail transit (LRT) Line 3 project would be awarding the first batch of work packages; which are made up of a depot, a building for workers’ quarters and some advanced system work, according to the Prasarana Malaysia Bhd president and chief executive officer, Datuk Azmi Abdul Aziz.
Turnpike Synergy Sdn Bhd, a unit of the Permodalan Nasional-owned, Projek Lintasan Kota Holdings Sdn Bhd, awarded a group comprising of Zelan Construction Sdn Bhd and Hasrat Sedaya Sdn Bhd with a package of RM257.61 million for the Suke project, while Jaks Sdn Bhd was awarded with a RM508.5 million package.
Suke, begins at Sri Petaling and passes through Sungai Besi, Alam Damai, Cheras-Kajang, Taman Bukit Permai, Taman Putra, Taman Permai Jaya, Taman Dagang Permai, Taman Kosas, Ampang and Taman Hillview, before exiting at Ulu Kelang. It is a 31.8km elevated highway.
Jaks’ package starts from chainage 16700 to chainage 19400 of the highway, which includes the construction of the main line and other related works, as claimed in a filing with Bursa Malaysia. Jaks’ contract is expected to be completed by Feb 28, 2019, within a 30-month duration. The project is expected to positively contribute to its earnings and revenue for this year and the following financial years during that period.
On that account, Jaks chief executive officer, Andy Ang Lam Poah is certain that the current order book would be enriched by the contract. He states, “We will continue to pursue other road, water, power and sewerage infrastructure tenders domestically and in Vietnam. With our track record in delivering past projects, we are confident that Jaks is in a good position to secure more projects.”
As for Zelan’s consortium, starting from Aug 29, the group would be constructing from the chainage 15000 to chainage 16700 section of the highway, also within a duration of 30 months as stated in a separate filing, “The works cover along Jalan Taman Putra for approximately 1.7km,” said Zelan.
Just last month, contracts were awarded under the Pan Borneo Highway to four joint ventures (JV). The JV of Naim Engineering Sdn Bhd and Gamuda Bhd won a package worth RM1.57 billion; Cahya Mata Sarawak Bhd and Bina Puri Holdings Bhd won a RM1.36 billion package; the JV of Mudajaya Corp Bhd and Musyati Sdn Bhd bagged a RM1.33 billion contract; and KKB Engineering Bhd and WCT Holdings Bhd were awarded a RM1.29 billion contract.
More infrastructure projects are expected to be initiated by the government, lending aid to the construction counters. This year, Bursa Malaysia’s Kuala Lumpur Construction Index is up by 3.47%, having climbed 21% from a low of 236.05 points in August last year. It has outperformed the benchmark FBM KLCI, which gained only 8% from last year’s low of 1,532.14 points and has experienced a 2.2% decline to date this year.