KUALA LUMPUR: EUROPLUS Group Bhd’s 80%-owned West Coast Expressway (WCE) will be one of the country’s most sizable highway projects in nearly 20 years, costing a whopping RM1.7 billion under the 10th Malaysian Plan (10MP).
The project is another milestone in the rollout of large-scale projects since the approval of the RM12.5 billion northern double-tracking project in 2009 and the development of a new highway after PLUS Expressways’ North South Expressway (NSE), according to CIMB Research.
“Though WCE is shorter than the NSE, its significance and potential spillovers should not be overlooked,” the report said, adding that the project cost for the WCE is 18% higher than the RM6 billion for NSE.
According to the report, WCE covers the coastal areas of Selangor and Perak while NSE traverses largely the mainland area of the Peninsular Malaysia from Kedah to Johor.
WCE is shaping up as the most significant highway project since NSE’s completion back in 1994, it also said.
“The construction of the WCE project will take five to six years before completion compared to seven years for the NSE,” it said, adding that with WCE’s total length of 316km is being less than 50% the length of NSE.
The project which runs along the west coast of Selangor, is able to spur new development and at the same time catalyse the construction, building material and property sectors, it also stated.
“Subcontracting works worth about RM2 billion in total will be up for grabs through an open tender,” it reported.
It also clarified a previous report released on Europlus dated April 13, this year, that the statement did not come from Tan Sri Chan Ah Chye himself, instead it largerly originated from other sources.
It also said the conclusion of the report stating that Europlus emerging as a pure infrastructure play once WCE gets off the ground, however still holds.