CMSB confident of continuing road maintenance concessions

KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMSB) is confident of holding on to its road maintenance concessions in Sarawak which end in June 2019.
Group chief executive officer – corporate Datuk Isaac Lugun said the company had been undertaking general construction and maintenance activities for 6,260 km of roads.
“We are confident of getting it (extension),” he added.
Lugun said the company was looking forward to securing more state road concessions which can stretch to about 30,000 km.
He was met at the 8th Bursa Malaysia-Hong Leong Investment Bank Stratum Focus series today, themed, “Sarawak: Journey in Transformation“.
Meanwhile, Lugun denied that the Sarawak-based company was closely-linked to former Sarawak Chief Minister and current Governor Abdul Taib Mahmud and his family.
“The Employees Provident Fund, Sarawak Economic Development Corporation and Lembaga Tabung Haji shares in CMSB are more substantial and cumulatively stand at 26.63 per cent. Foreign holdings are at 15 per cent as compared to Taib’s sharehodling,” he told reporters at a question and answer session.
CMSB’s share price dropped significantly to RM2.16 per share in May 25, 2018 and after the 14th General Elections before slowly recovering. The counter was trading at RM3.70 per share today.
Commenting on the review of the Pan Borneo Highway, Lugun reiterated that the company would not be affected by the potential change to the project’s execution based on the project delivery partner (PDP) model.
“We have a firm contract signed with the government. if there is a change, it’s just the model change to the PDP. They want a turnkey contractor, but haven’t disclosed how the turnkey contractor model would work,” he said.
CMSB has been awarded package six for the highway and it would be major supplier of construction materials for the project at an approximate cost of RM16 billion.
Meanwhile, Regional Corridor Development Authority (RECODA) chief executive officer Datuk Ismawi Ismuni said the authority was studying the possibility of developing a smaller dam in Lawas, with a capacity to generate 200 megawatts of electricity.
“So, this is part of the Sarawak Corridor of Renewable Energy (SCORE) because we would like to attract industries that use power or electricity for their activities.
“However, we also realise there will be limitations in terms of power supply and have a good number of energy intensive industries already operating in the SCORE.
“We will continue to attract downstream industries which consume less electricity, but are knowledge and high-technology based.
“I would like to mention that total investments secured for SCORE is RM33.64 billion from 22 projects approved thus far,” he added.
Overall, RECODA, whose goal is to promote the SCORE, is aiming to secure RM270 billion in private investments by 2030. – Bernama