Earlier in October, a total of 13 contractors had received letters of acceptance (SST) to carry out Phase 1B of the Pan Borneo Highway (LPB) project in Sabah, Malaysia.
Shoraka Construction Sdn Bhd (SCSB), a wholly owned subsidiary of Ireka Corporation Bhd, was granted a RM1.07 billion highway construction sub-contract to focus on the road upgrade from Kampung Lomour Baru to Kampung Toupus (Work Package 33), which will be ongoing for 48 months starting 30 September 2024.
It has been reported that the construction period for the Phase 1B work packages is between 36 and 48 months, and the federal government fully funds the development costs.
“The acceptance of the contract is in ordinary course of business of SCSB and will enhance the existing order book. It is expected to provide a steady stream of revenue and income to the Ireka Group over the next 4 years,” Ireka said in a statement.
The company added that the project is expected to contribute positively to the net assets and earnings per share of Ireka Group for the financial year ending 30 June 2025 and until the project’s completion.
Phase 1B work packages would be implemented as follows: North-West Alignment: Work Packages 11-14 (Kota Belud to Kudat); South East Alignment: Work Packages 16-20 (Tawau to Lahad Datu); North East Alignment: Work Packages 22-26 (Lahad Datu to Sandakan); and Central Alignment: Work Packages 31-35 (Telupid to Ranau).
Phase 1B is divided into 19 work packages out of the total of 35 work packages for Phase 1 of the LPB in Sabah, with the scope involving the construction of a new federal road from Kota Belud to Kudat and the improvement of the Federal Road from Ranau to Lahad Datu, spanning 370km.
Meanwhile, the 706km Phase 1 of the LPB in Sabah is divided into two phases, comprising 35 work packages, namely Phase 1A consisting of 16 work packages covering 336km, with a development cost of RM10.849 billion.
Phase 1A started in 2016, which is currently at 78% completion. It is expected to be fully completed by the second quarter of 2026. To date, the Sabah LPB project is considered a high-impact project in Malaysia as it is expected to greatly benefit the people and spark development in high-potential areas along the highway alignment.
