KUALA LUMPUR (Sept 13): Pansar Bhd (KL:PANSAR) has bagged RM777.11 million contract for road construction related to phase 2 of Sabah-Sarawak Link Road (SSLR) project.
Pansar’s wholly owned subsidiary Perbena Emas Sdn Bhd has received a letter of acceptance from Maltimur Aktif Unggul JV Sdn Bhd (MAUJV) for phase 2 of the SSLR project related to package 4A, its bourse filing showed.
The Package 4A will connect RH Aling in Limbang to Bukit Pagon, which is the border between Sarawak and Brunei.
MAUJV is the master contractor of phase 2 of the SSLR project. Phase 2 of the SSLR encompasses 320km and costs nearly RM7.4 billion.
The scope of work involves the construction of 54km of R3 JKR standard road from RH Aling to Bukit Pagon, including three bridges.
“It also includes site clearance, earthwork, drainage work, geotechnical work, road furniture, traffic management, environmental management and electrical work,” it said.
The contract period is 48 months, and it is scheduled to commence on Sept 13.
When completed, the SSLR will provide improved road connectivity, linking communities in Sarawak and Sabah without having to cross international borders. This will ease the movement of people, bolster economic activities, and stimulate local economies.
The contract is expected to contribute positively to the group’s earnings and net assets as the project progresses during the contract period.
This is the second contract won by Pansar within two weeks. On Aug 30, the group clinched an RM804.7 million contract for the Kuching Urban Transportation System (KUTS) Blue-Line Package 2 in Sarawak.
The contract value is significantly higher than Pansar’s current market capitalisation of RM301 million, based on the Main Market-listed company's closing share price of 58.5 sen on Friday. The stock settled 1.5 sen or 2.6% higher on Friday and is down 14% year to date.
Pansar is a supplier and service provider of marine and industrial engineering products, construction and building materials, wood engineering equipment, and electrical and office automation products.
Datuk James Tai Cheong, also known as Tai Chiong, is Pansar's largest shareholder, holding a 60% stake through Pan Sarawak Holdings Sdn Bhd. He serves as chairman of the company.