KUALA LUMPUR (Aug 22): IJM Corp Bhd (KL:IJM) has firmed up the RM1.40 billion project to extend the New Pantai Expressway (NPE) by 15 kilometres, after signing a supplementary concession agreement with the government.

The extension, known as NPE2, will be a fully elevated highway connecting the Pantai Dalam Toll Plaza to Jalan Istana Interchange via Jalan Syed Putra, and will include a new toll plaza.

The group said its unit New Pantai Expressway Sdn Bhd has signed a supplementary concession agreement with the government for the extension and toll rate restructuring, according to its bourse filing on Friday.

IJM did not elaborate further on the supplementary concession agreement, but confirmed that there will be no toll rate hike at the NPE until the expiry of the concession period.

It was reported earlier that the concession of NPE would expire in 2030. Nevertheless, according to IJM’s 2025 annual report, it pointed out that the concession period is “to be extended in line with the NPE2 supplementary concession”. NPE2 refers to the 15km extension to the NPE.

The supplementary concession agreement follows the government’s green light for IJM to proceed with the NPE extension earlier in May this year, a reversal of its previous cancellation in 2012. 

The project, to be fully funded by IJM, is slated to commence construction in the third quarter of 2025 and is expected to be completed by 2029.

The NPE currently spans 19.6km, connecting Subang Jaya to Kuala Lumpur, with three toll plazas and 44 lanes. A key component of the expressway, the Kuchai Link, serves as a vital connector to Besraya, enhancing traffic dispersal within the Klang Valley.

Shares in IJM ended one sen or 0.34% lower at RM2.90 on Friday, valuing the group at RM10.58 billion.