KUALA LUMPUR (July 26): The joint venture of KKB Engineering Bhd and WCT Holdings Bhd has bagged a RM1.289 billion contract for Phase 1 works of the proposed Pan Borneo Highway (Sarawak stretch) project from Lebuhraya Borneo Utara Sdn Bhd.

In a filing with Bursa Malaysia today, KKB said the contract is for the development and upgrading of the portions between Sungai Arip Bridge to Bintulu Airport under the proposed Pan Borneo Highway project.

The contract will be completed within 51 months.

Both companies will incorporate a JV company named KKB Engineering Bhd-WCT Bhd JV to undertake the job, where KKB will own a 70% stake in the JV company and the remaining 30% will be held by WCT.

KKB expects the contract to contribute positively to its earnings, during the duration of the contract.

Shares in KKB climbed three sen or 1.82% to trade at its one-month high of RM1.68 as of midday trading break today, for a market value of RM430.51 million.

WCT, meanwhile, gained one sen or 0.65% to hit its one-month high of RM1.56, for a market capitalisation of RM1.94 billion.