News on Sarawak Corridor on Renewable Energy : SCORE

25Oct09

A Website www. bursastreet.blogspot.com has this to say “

“ SCORE road projects to get off the ground? There has been speculation that the Government will soon award out two key road projects of the Sarawak Corridor of Renewable Energy (SCORE), namely: (1) The Murum access road worth about RM900m; and (2) The Nanga Merit access road worth about RM1.2bn.

♦ Bridging the gap. The award of the Murum access road project, if it really happens soon, will bridge the gap between the award of the first two large-scale local projects recently (in mid-2009), and the subsequent ones (only from 2010 onwards), helping to sustain interest and the current high valuations of construction stocks.

♦ “Liberalisation” of the construction market in East Malaysia? The SCORE road projects will be awarded out on an open tender basis, with no “special consideration” or exclusivity to be given to East Malaysiabased contractors. This “liberalisation” that promotes competition and brings down project costs is another tell-tale sign that low margins are beginning to look like a new fact of life to local contractors. “

The Score projects ( if the rumours are correct ) are all located in Sarawak, Malaysia.

It is very interesting to note that the author said/hopes the contracts , if awarded , are to be opened for public Tenders as it is the only way to be assured that the Government will be charged a competitive price . The alternative is to award the contracts by negotiation which are often the case and leaving the Government over charged. Let us hope the author is correct.

The usual hand full of the Sarawak based public listed companies will now have to fight for their lives .

Let us wait and see the details on the Budget 2010.

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