KUALA LUMPUR (Dec 19): Protasco Bhd (KL:PRTASCO) announced that its 51%-owned subsidiary, Roadcare (M) Sdn Bhd, has entered into a one-year interim agreement with the government for federal road maintenance in the Central-Eastern regions while a new concession is being finalised.

The road maintenance works covers 7,263km of roads across Selangor, Pahang, Terengganu, and Kelantan.

In a filing with the bourse, the company said the interim agreement is pending the government’s decision on the selection of a company to provide the maintenance works, finalisation of a new concession agreement and to ensure continuity of the maintenance works.

The arrangement follows the expiry of the original 10-year federal road maintenance concession it had with the government, which began in February 2016 and is set to conclude on Feb 16, 2026. 

According to Roadcare’s website, the company was established in 2001 with the sole purpose of managing the privatisation of federal road maintenance for the Central-Eastern Zone of Peninsular Malaysia.

The latest interim contract will run from Feb 17, 2026, till Feb 16, 2027.

According to Protasco’s annual report, the routine maintenance under the concession generates recurring value of approximately RM140 million per year. In addition, periodic maintenance and emergency works — based on actual work carried out — are estimated at RM130 million to RM150 million annually.

Shares in Protasco closed unchanged at 24 sen on Friday, valuing the company at RM118.89 million. Year to date, the stock has declined by 33.3%.