KUALA LUMPUR (Aug 27): IJM Corp Bhd (KL:IJM) said the restructuring of toll rates for the New Pantai Expressway (NPE) will save the government about RM191 million in compensation payments, following the signing of a supplemental concession agreement (SCA) with the Ministry of Works on Wednesday.

The agreement formalises the 15km NPE extension, which will be fully elevated and include a new Syed Putra Toll Plaza, and provides for an extension of the NPE concession period.

 However, IJM did not specify the duration of the extension.

Construction is scheduled to begin in the fourth quarter of 2025, with completion targeted within 48 months. Additionally, IJM said it has already secured up to RM1.4 billion in project financing from two undisclosed local financial institutions.

According to a press statement, the highway extension will run from the Pantai Dalam Toll Plaza to Jalan Istana via Jalan Syed Putra, providing a direct link to the Jalan Istana Interchange.

This will connect the NPE with the Sungai Besi Expressway (Besraya) and the upcoming Laluan Istana-Kiara Expressway (LIKE).

IJM said the new alignment is designed to ease key congestion points in the Klang Valley, potentially diverting up to 40% of vehicles currently using Jalan Bangsar into the city and reducing travel time by as much as 25 minutes between Pantai Dalam and central Kuala Lumpur.

Works Minister Datuk Sri Alexander Nanta Linggi, who witnessed the signing ceremony, said the extension underscores the role of public-private partnerships in delivering major infrastructure without direct financial support from the government.

“Once completed, the extension will enhance connectivity between major highways, including the NPE, LIKE and Besraya, and support the rapid development along the Pantai Dalam-Bangsar-Lebuhraya Mahameru corridor.

“This project aligns with the government’s vision for a more connected, efficient and people-centric transport network,” he said.

IJM group CEO and managing director Datuk Lee Chun Fai said the signing of the SCA marks a significant step forward for the group’s infrastructure business.

“The NPE extension will ease congestion, reduce travel times and enhance access into the city, while also supporting everyday mobility for residents and businesses in synergy with public transport,” he said.

The government had in 2012 cancelled the RM1.4 billion extension plan, but IJM vowed at the time to appeal with a revised alignment. The project was eventually revived, with approval granted in May this year.

IJM previously confirmed that existing toll rates along the NPE will remain unchanged until the expiry of the concession period.

The NPE currently spans 19.6km from Subang Jaya to Kuala Lumpur. Key upgrades in recent years include the Kuchai Link, completed in 2017, and the Pantai Sentral Interchange in 2018.

At 4.40pm on Wednesday, shares in IJM were up five sen or 1.7% at RM2.99, valuing the group at RM10.91 billion.

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