KUCHING: Cahya Mata Sarawak Bhd’s (CMS) subsidiary PPES Works (Sarawak) Sdn Bhd has teamed up with a company from China to bid for major road projects in Sarawak.
PPES Works (PPESW), which is 51 percent-owned by CMS Works Sdn Bhd, which in turn is 100 percent-owned by CMS, has set up a joint venture company with China Communication Construction Company (M) Sdn Bhd called PPESW CCCC JV.
PPES Works and CCCC have 70 percent and 30 percent stake respectively in the JV company.
The initial issued share of PPESW CCCC JV is RM10, comprising 10 ordinary shares held by PPESW (70 percent) and CCCC (30 percent).
“The purpose of PPESW CCCC JV is to participate in the tender for the construction and completion of (1) the balance of works to complete the coastal road network, Sarawak; (2) The Second Trunk Road, Sarawak; if successful to be the joint venture vehicle to execute the said projects,” CMS said in a filing with Bursa Malaysia.
CMS said the incorporation of the JV company would not have any effect on the earnings per share, net assets per share, share capital, gearing and/or substantial shareholders, shareholdings of CMS for the financial year ending Dec 31,2019.
The coastal road network and the second trunk road are the two mega infrastructure projects which the state government wants to fast track in construction.
According to media reports, the proposed coastal road network spans some 900km from Sematan in the southern region to Miri in the north
The second trunk road project is to provide shorter routes to the main trunk road and will eventually link up with the Pan Borneo Highway, which is currently under upgrading and construction works.
The second trunk road project is divided into three sections, the first being a 112km single carriageway from Kota Samarahan to Roban, Betong Division (existing road distance is 155km).
The second section involves a 94km single carriageway to
connect Sebuyau and Sri Aman/Betong.
The third section will involve the upgrading and extension of the existing two-lane carriageway from Jalan Kelupu in Bintangor to Lanang Bridge in Sibu.
PPES Works and joint venture partner Bina Puri Holdings Bhd are now undertaking one of the 11 work packages of the Pan Borneo Highway project.
The RM1.36 billion package is for road construction and upgrading from Sg Awik Bridge to Bintangor junction in central Sarawak with total length of 64.49km.
