RM766Mil Construction Jobs Awarded for SUKE

Friday, 5 August 2016
The Star Online 

KUALA LUMPUR: Construction of the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) is taking off with two awards of contracts by the concessionaire totalling RM766.1mil for work on parts of the highway.

SUKE is a 31.8km, three-lane, dual carriageway expressway that will serve as a link between existing major highways and roads in the Klang Valley.

In a filing with Bursa Malaysia yesterday, JAKS Resources Bhd said the highway concessionaire Projek Lintasan Kota Holdings Sdn Bhd’s (Prolintas) unit, Turnpike Synergy Sdn Bhd, had awarded its wholly owned subsidiary JAKS Sdn Bhd a RM508.5mil contract.

In a separate filing, Zelan Bhd said Turnpike had given Zelan–Hasrat Sedaya Consortium, in which its unit Zelan Construction Sdn Bhd is a member, a letter of acceptance worth RM257.61mil.

Both contracts are for mainline and associated works and have a duration of 30 months, with completion targeted by Feb 28, 2019. According to Zelan, the date for the site possession is Aug 29, 2016.

Zelan said the works awarded to it and its partner, Hasrat Sedaya Sdn Bhd, would cover about 1.7km along Jalan Taman Putra. JAKS, however, did not mention the stretch that it would cover.

Prolintas, a unit of fund manager Permodalan Nasional Bhd, was given the concession for the expressway a few years ago. However, the project has drawn protests by residents living in areas where the highway would pass through as it would entail forced acquisitions of homes and land.

In April, it was reported that the Say No To SUKE group made an application for a judicial review on the project to stop further property acquisition activities.

In yesterday’s announcement, JAKS said the contract from Turnpike was expected to contribute positively to the revenue and earnings of the group for the financial year ending Dec 31, 2016 and the following financial years within the duration of the contract.

It added that there would be no effect on the group’s gearing and the deal would not have material effect on the net assets per share for this financial year ending Dec 31, 2016.

JAKS shares shed 3.5 sen to close at 92 sen yesterday with 1.2 million shares changing hands. Zelan, meanwhile, gained two sen to 19 sen, with 15.5 milliom shares traded.