HSL secures RM300mil bridge contract
KUCHING (Wednesday): Hock Seng Lee Berhad (HSL) has won a contract for the proposed construction of the Batang Paloh Bridge in Mukah, Sarawak.
Procured in an open tender exercise from the Sarawak Government, the RM298.98 million contract is under Package 3 of the RM11 billion allocation for the state’s coastal road upgrading, secondary trunk road network and water supply project.
The project will see existing ferry services at river crossings replaced with permanent bridges, enabling better accessibility and connectivity.
Construction of the 1.9km balanced cantilever reinforced concrete Batang Paloh Bridge will require substantial marine piling works using steel-pipe piles of 1500mm in diameter.
The scope of works will also include earthworks, geotechnical works, drainage, pavement works and the associated mechanical and electrical works. The contract period is 48 months, with physical construction work expected to commence in May 2019.
HSL Managing Director Dato Paul Yu Chee Hoe said the outlook for the group was promising given the Batang Paloh Bridge project was bagged shortly after HSL won RM54.3million worth of contracts from Sarawak Energy Bhd for earthworks, facilities and residences for the Balingian coal-fired power plant, also in Mukah.
Known as a knowledge and industrial hub, Mukah is within the SCORE (Sarawak Corridor of Renewable Energy) area of central Sarawak. HSL has successfully undertaken numerous major projects in the vicinity including water-supply works and the UiTM campus.
The latest contracts in Mukah will contribute positively to the earnings and net assets of HSL.
“We are pleased to have secured these new projects and are confident that our marine engineering expertise and marine based machinery portfolio will be an added advantage in their execution,” he said.
“The latest contract win has boosted our order book to a record RM3.2 billion and of this, RM2.5 billion is unbilled.
“We therefore have sufficient work to keep us busy and will remain selective in our procurement initiatives, bidding when projects align with our core strengths, capacity and capabilities,” Dato Paul Yu said.
In 2018, the group secured Rm200 million worth of new jobs, while to-date in 2019, it has already secured RM350 million in new contracts.
Earlier in February, HSL had released strong annual financial results for the year ended 31 December 2018.
Good progress on its major projects had enabled the group to record revenue of RM610.36 million, up some 45 percent on the RM420.02 million attained for the year 2017.
“HSL’s section of the Pan Borneo Highway has picked up momentum and we have commenced premixing for the pavement works. Our two centralized wastewater management projects are also progressing well with our Miri project currently ahead of schedule,” said Dato Yu.
“It is an exciting time for us at HSL as the group has strong revenue flows from our construction sector, while our property development sector is rolling out new launches and promotions.
The La Promenade Mall and adjacent high-rise office headquarters, known as HSL Tower, will be completed soon,” Dato Yu added.
The tower will be the first privately owned Green Building Index (GBI) certified building in Sarawak and its commercial wing will house leading lifestyle commercial outlets.
Meanwhile, the high-end homes at HSL’s 200-acre La Promenade are proving to be a prestigious lifestyle choice in Kuching with the estate lauded for award-winning landscaping and advanced security.
Dato Yu also noted that HSL was this year the only company from Sarawak to win a four-star rating from the Construction Industry Development Board (CIDB), making it the seventh consecutive year, the company has attained this accolade.
“We are gratified that our world-class management and execution capabilities have been duly recognized and we are inspired to continue to deliver excellence to our clients,” said Dato Yu.