LTA awards 3 contracts worth S$596m for future Jurong Region Line

A UNIT of Mainboard-listed Chip Eng Seng Corporation and two other firms have snagged three civil contracts worth some S$596 million to design and construct four Jurong Region Line (JRL) stations and their associated viaducts, the Land Transport Authority (LTA) announced on Thursday. 

The largest contract, valued at S$226.6 million, was awarded to Sembcorp Design and Construction, a wholly-owned subsidiary of property and construction group Chip Eng Seng. In a regulatory filing on Thursday evening, Chip Eng Seng noted that the contract is expected to contribute positively to its net tangible assets and earnings per share for the current financial year ending Dec 31, 2020. 

Chip Eng Seng last traded at S$0.59 on Thursday, down 0.5 Singapore cent or 0.8 per cent before its request for a trading halt at 12.44pm. Following this announcement, the company requested for the lifting of this trading halt slightly before 4pm on the same day.

The contract awarded to Sembcorp Design and Construction comprises the design and construction of Gek Poh and Tawas stations, as well as two viaducts with a total length of 1.3 kilometres - one along Jurong West Street 75 and another between the two stations. Both stations with working names are expected to be completed in 2026. Sembcorp Design and Construction is also currently involved in constructing the Marina South station on the Thomson-East Coast Line (TEL). 

Separately, the contract awarded to South Korea-based contractor Daelim Industrial Co is valued at S$197.4 million. It comprises the design and construction of Jurong East station and a 0.5 km viaduct.

The contract also includes addition and alteration works to the existing Jurong East station on the North-South and East-West Lines, to integrate it with the new JRL station. The new station is expected to be completed in 2027. Daelim is currently involved in the construction of the Outram Park interchange station on the TEL, and previously constructed a section of the Marina Coastal Expressway. 

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Meanwhile, the third contract valued at S$172 million was awarded to China Communications Construction Company for the design and construction of Boon Lay station and a 0.8 km viaduct along Jurong West Street 64. 

The deal includes addition and alteration works to the existing Boon Lay station on the East-West Line to connect it to the new JRL station, which is slated to be completed in 2026. China Communications Construction specialises in the design and construction of large-scale rail, road and bridge projects. It previously completed several rail projects in countries including China and Kenya. 

Last week, The Straits Times reported that trains for the JRL will have emergency batteries which allow them to be driven to the nearest station should there be a power failure. They will be the first trains to have such a feature.