TCS Group Holdings Bhd’s wholly-owned subsidiary, TCS Construction Sdn Bhd (TCSC) secured a RM611.30 million contract from Sabah Public Works Department for the construction of the Pan Borneo Sabah Highway Phase 1B.
The project involves the construction of a new highway and road upgrading works, covering an 18.2km stretch between Telupid and Kampung Lumou Baru, which will be upgraded to a dual carriageway, including 4 new bridges.
The company said that the duration of the contract is 42 months, commencing from 20 December 2024 and is scheduled for completion by 19 June 2028.
In total, approximately RM2.53 billion was spent on land acquisition for Phase 1 of the project, to which the figure is divided into RM1.32 billion for Phase 1A and RM1.21 billion for Phase 1B.
According to State Works Minister Datuk Shahelmey Yahya, the compensation payments were settled through procedures set by the Land and Survey Department, including gazetting, evaluations, giving and receiving offers, acceptance of payments and then the payment process.
“One of the big challenges in the project is land acquisition, especially land under customary ownership. Land owned by individuals or communities based on Native Customary Right (NCR) has a longer process, since they require approval from the landowner and legal approvals.
“Apart from that, the lack of manpower in the Land and Survey Department also contributes to delays in the assessment and land acquisition process,” he said, highlighting that the Sabah Pan Borneo Highway Project is divided into 3 phases, where Phase 1 is divided into 35 packages, where Phase 1A and Phase 1B span a total of 706km.
Under Phase 1, the construction of 4 work packages have been completed, 28 are under construction, 2 are at the procurement finalization stage, while one is at the issuance of Letters of Acceptance (SST) stage.
“For Phase 1A which is currently under construction, it is expected to be completed by October 2026 while Phase 1B is expected to be completed in its entirely by September 2028.
“For Phase 2 involving the Tamparuli-Ranau stretch with an estimated distance of around 98km and Phase 3 of the Kimanis-Keningau-Kalabakan-Tawau stretch with a distance of around 432km, they are still in the planning stage,” he added, stating that the project implementation is dependent on government approval and financial ability.
Considering the span of the project, Shahelmey pointed out that adequate safety measures for wildlife such as elephants have also been incorporated into the construction plans.
“It is in the process of design and value management. Safety features for wildlife that may use that part of the Pan Borneo Highway have been included,” he said, adding that the implementation of the project depends on the approval and financial capacity of the government.
The post TCS Group Wins RM611.30 Mil Pan Borneo Highway Contract first appeared on Logistics Asia.