Pan-Bornean Boulevard Sabah project builders are scrambling their hands to compete

(KUALA LUMPUR, 5th) With only 6 remaining unissued project packages for the first phase of the Pan-Borneo Boulevard Sabah section, CIMC Securities believes that competition for related projects is fierce today.

An analyst at CIMC International Securities pointed out that the first phase of the project on the Sabah section of Pan Borneo Boulevard is also divided into two stages, 1A and 1B. Currently, there are only 6 project packages left for Phase 1B that have yet to be issued.

Phase 1B projects include 19 project packages, 13 of which were awarded in early October this year, with a total value of RM14 billion. The construction period is expected to be 36 to 48 months.

Although the listed contractors did not gain much from the Phase 1B project, the analyst believes that large builders such as Jinwu University, IJM, WCT Holdings, and Ma Resources are still expected to seek support for the remaining 6 projects.

Among them, Jinwu University recently successfully won the construction project for the Ulu Padas dam hydroelectric power station in inland Sabah, worth RM2.3 billion. Analysts said that the company may also obtain new contracts of up to RM5 billion through additional water infrastructure projects related to related projects.

“Phase 1B projects attracted 300 bids during the pre-selection period. We predict that competition for the remaining 6 projects will still be fierce.”

The target prices for the 4 preferred construction stocks mentioned above are set at RM10.20, RM3.80, 95 cents, and 50 cents, respectively.

Phase 1A and 1B projects on the Sabah section of Pan Borneo Boulevard have 15 and 19 project packages, respectively, with a total value of RM24.8 billion, all of which are borne by the central government.

Among them, the entire area of Phase 1A is 336 km worth RM10.8 billion. Construction began in April 2016, but only 78% of the project has been completed so far. The reason is that the progress of the project has been affected by several factors, including coordination issues between contractors, government agencies and engineering consultants, land acquisition and landlords' unwillingness to cooperate, and the lengthy process of relocating public facilities around the road project.

According to the revised schedule, Phase 1A Pan-Bornean Sabah Boulevard is not expected to open until the second quarter of 2026.