KUALA LUMPUR (June 24): IJM Corp Bhd (KL:IJM) said the RM1.7 billion New Pantai Expressway 2 (NPE 2) extension project remains within its allocated budget, though it is keeping a close watch on costs amid geopolitical uncertainties that could drive up raw material prices.

“We are still managing the budget allocated for the project,” IJM toll division chief executive officer Chua Lay Hoon said at a briefing on the construction works for NPE 2.

NPE 2, which is slated for completion on Oct 15, 2029, is expected to attract about 40,000 vehicles daily in its first year of operation, with traffic forecast to expand by 2% to 3% annually thereafter, said Chua.

NPE 2 comprises approximately 15.9km of elevated highway and ramps connecting the Pantai Toll Plaza to Jalan Istana via Jalan Syed Putra and will include a new toll plaza.

Chua also said the group continues to study options to monetise its toll-road assets, although no decision has been finalised.

When asked about the timing of any potential monetisation exercise for IJM's toll-road assets, Chua said the group is still evaluate various options and has yet to make a decision.

She said one possibility is to include the group's stake in the West Coast Expressway as part of a broader monetisation exercise once the highway is fully completed, although the group may also proceed without the West Coast Expressway.

"It's on study right now, but it's not finalised yet," she said.

IJM has previously outlined plans to unlock shareholder value through measures such as monetising portions of its land bank, rationalising its India portfolio, the sale or listing of the toll road assets and listing its mainstay construction business, according to analysts.

IJM’s toll business is parked under its infrastructure segment. In Malaysia, IJM owns the Sungai Besi Expressway (Besraya), Kajang-Seremban Highway (LEKAS) and NPE. 

The conglomerate owns a 28.2% stake in WCE Holdings Bhd (KL:WCEHB), the concessionaire of the 233km West Coast Expressway that connects Banting in Selangor to Taiping in Perak.

At the noon market break on Wednesday, IJM's shares price traded four sen or 1.74% higher at RM2.34, giving the company a market capitalisation of RM8.54 billion.

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