By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on June 26, 2013
The projects are the Damansara-Shah Alam Elevated Expressway and the Sungai Besi-Ulu Klang Elevated Expressway.
KUALA LUMPUR: Projek Lintasan Kota Sdn Bhd (Prolintas) is preparing a RM8 billion war chest to build two new highways in Peninsular Malaysia, said industry players and analysts who cover the construction sector.
Business Times was told that works on the infrastructure projects can take place within the next 12 months as Prolintas has already secured the concessions.
The projects are the Damansara-Shah Alam Elevated Expressway (DASH) and the Sungai Besi-Ulu Klang Elevated Expressway (SUKE).
Sources said Prolintas is working on the best financial model for the projects, addressing two core issues, namely the cost of compensation for businesses that may have to relocate before actual construction work begins, and the cost of construction materials, which has been volatile with a northward bias.
As at press time, Prolintas chief executive officer Zainudin A. Kadir did not respond to questions sent by Business Times.
Analysts said the construction sector is excited about new jobs coming on stream, including the light rail transit extension and the MY rapid transit (MRT) Line 1, but there are concerns about rising building material costs.
"The industry has to watch out for the sand price, which is rising," Edmund Tham, the head of research at Mercury Securities, told Business Times
Building material prices for components like bitumen, gravel and steel, in some cases, have risen over 100 per cent in one year, thanks to the big-ticket MRT Line 1, a RM23 billion project that aims to create an underground rail network in the city centre that links to Sungai Buloh and Kajang.
The Prolintas projects are expected to tighten demand for building materials and create a scramble among heavyweight construction companies for a piece of the action.
Among companies associated with heavy infrastructure jobs are IJM Corp Bhd, MMC Corp Bhd, Gadang Holdings Bhd and Bina Puri Holdings Bhd.
Prolintas, the country's second biggest highway concessionaire, is a unit of Permodalan Nasional Bhd, Malaysia's biggest fund management company.
It operates and manages the Ampang-Kuala Lumpur Elevated Highway (Akleh), the Guthrie Corridor Expressway and the Kemuning-Shah Alam Highway.
DASH and SUKE are two of seven highway projects estimated to cost about RM19 billion to be developed under the 10th Malaysia Plan (2011-2015).
DASH will start at the Puncak Perdana U10 Shah Alam intersection and serve as a link for Puncak Perdana, Alam Suria, Denai Alam, Kampung Melayu Subang, Jalan Sungai Buloh, the Rubber Research Institute of Malaysia, Kota Damansara, Damansara Perdana and Mutiara Damansara.
The 20.1km three-lane, dual carriageway will end at the Penchala interchange.
SUKE will link major highways in the eastern Klang Valley, including the Duta-Ulu Kelang Expressway, Akleh, Besraya, the Kuala Lumpur-Seremban Highway, the Cheras-Kajang Highway, Kesas and MRR2.
The 31.8km, three-lane elevated expressway will start in Sri Petaling and pass through Sungai Besi, Alam Damai, Cheras-Kajang, Taman Bukit Permai, Taman Putra, Taman Permai Jaya, Taman Dagang Permai, Taman Kosas, Ampang and Taman Hillview, and exit at Ulu Kelang.
sharen@mediaprima.com.my
Published in NST on June 26, 2013
The projects are the Damansara-Shah Alam Elevated Expressway and the Sungai Besi-Ulu Klang Elevated Expressway.
KUALA LUMPUR: Projek Lintasan Kota Sdn Bhd (Prolintas) is preparing a RM8 billion war chest to build two new highways in Peninsular Malaysia, said industry players and analysts who cover the construction sector.
Business Times was told that works on the infrastructure projects can take place within the next 12 months as Prolintas has already secured the concessions.
The projects are the Damansara-Shah Alam Elevated Expressway (DASH) and the Sungai Besi-Ulu Klang Elevated Expressway (SUKE).
Sources said Prolintas is working on the best financial model for the projects, addressing two core issues, namely the cost of compensation for businesses that may have to relocate before actual construction work begins, and the cost of construction materials, which has been volatile with a northward bias.
As at press time, Prolintas chief executive officer Zainudin A. Kadir did not respond to questions sent by Business Times.
Analysts said the construction sector is excited about new jobs coming on stream, including the light rail transit extension and the MY rapid transit (MRT) Line 1, but there are concerns about rising building material costs.
"The industry has to watch out for the sand price, which is rising," Edmund Tham, the head of research at Mercury Securities, told Business Times
Building material prices for components like bitumen, gravel and steel, in some cases, have risen over 100 per cent in one year, thanks to the big-ticket MRT Line 1, a RM23 billion project that aims to create an underground rail network in the city centre that links to Sungai Buloh and Kajang.
The Prolintas projects are expected to tighten demand for building materials and create a scramble among heavyweight construction companies for a piece of the action.
Among companies associated with heavy infrastructure jobs are IJM Corp Bhd, MMC Corp Bhd, Gadang Holdings Bhd and Bina Puri Holdings Bhd.
Prolintas, the country's second biggest highway concessionaire, is a unit of Permodalan Nasional Bhd, Malaysia's biggest fund management company.
It operates and manages the Ampang-Kuala Lumpur Elevated Highway (Akleh), the Guthrie Corridor Expressway and the Kemuning-Shah Alam Highway.
DASH and SUKE are two of seven highway projects estimated to cost about RM19 billion to be developed under the 10th Malaysia Plan (2011-2015).
DASH will start at the Puncak Perdana U10 Shah Alam intersection and serve as a link for Puncak Perdana, Alam Suria, Denai Alam, Kampung Melayu Subang, Jalan Sungai Buloh, the Rubber Research Institute of Malaysia, Kota Damansara, Damansara Perdana and Mutiara Damansara.
The 20.1km three-lane, dual carriageway will end at the Penchala interchange.
SUKE will link major highways in the eastern Klang Valley, including the Duta-Ulu Kelang Expressway, Akleh, Besraya, the Kuala Lumpur-Seremban Highway, the Cheras-Kajang Highway, Kesas and MRR2.
The 31.8km, three-lane elevated expressway will start in Sri Petaling and pass through Sungai Besi, Alam Damai, Cheras-Kajang, Taman Bukit Permai, Taman Putra, Taman Permai Jaya, Taman Dagang Permai, Taman Kosas, Ampang and Taman Hillview, and exit at Ulu Kelang.
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