KUCHING: Naim Holdings Bhd’s 70 per cent-owned subsidiary — Naim Gamuda (NAGA) JV Sdn Bhd — has been awarded a RM1.13 billion contract for the Northern Coastal Highway, work package Limbang Section 1 project. The contract was from the Regional Corridor Development Authority (Recoda).
Naim’s JV partner, Gamuda Bhd, owns the other 30 per cent equity interest in Naim Gamuda (NAGA) JV.
“The contract period is 48 months commencing from the date of site possession,” Naim said in a filing with Bursa Malaysia.
In a similar filing, Gamuda, which provided more details on the contract, said the package covers the construction of approximately 14.7km of fourlane dual carriageway highway, including bridges, flyover, earthworks and other associated works, in the Limbang area.
“The main risks of the project will be the fluctuation in prices of construction materials, current tight labour market situation and the unpredictable weather condition.
“The project will strengthen the bilateral relationship in terms of trade and investment between Sarawak, Sabah and Brunei Darussalam, and it shall be the catalyst for socioeconomic development in the northern region of Sarawak,” added Gamuda. Both Naim and Gamuda expect the contract to contribute positively to their group earnings over the duration of the project.
Naim and Gamuda JV was last involved in the construction of the Pan Borneo Highway work package WPC-04 (Pantu junction to Batang Skrang). The JV, which was awarded the RM1.54 billion works package in 2016, had completed and delivered the project.
