Ekovest Bhd signs deal for RM3.74 billion highway

Ekovest Bhd signs deal for RM3.74 billion highway

PETALING JAYA, Jan 12: The construction of the Setiawangsa-Pantai Expressway (SPE), formerly known as DUKE Phase-3, is expected to cost RM3.74 billion with a concession period of 53 years and six months, according to Ekovest Bhd.

This is RM170 million or 4.7%% higher than the RM3.57 billion announced a year ago.

The group announced the revised pricing for the concession agreement that was signed with the government yesterday, in a filing with the stock exchange.

“The construction cost is expected to be financed via a combination of internally generated funds, borrowings and/or other fund raising exercise,” it explained.

The concession agreement is in relation to the design, construction, completion, operation, management and maintenance of the SPE.

Ekovest said the concession period of 53 years and six months commences from the effective date, subject to terms and conditions, of the concession agreement. The concession agreement is expected to contribute positively to its earnings and net tangible assets for future financial years.

Subject to the terms and conditions of the concession agreement and the Federal Roads (Private Management) Act 1984 [Act 306], the government granted Ekovest the right and authority to undertake the design and construction of the highway; supply and install tolling and other equipment at the toll plaza; demand, collect and retain toll for its own benefit from all vehicles liable to pay toll using the highway, among others.

Ekovest in January 2015 announced that it had received a letter from the Public Private Partnership Unit in the Prime Minister’s Department approving in-principle the proposed privatisation of the highway project.

The proposed alignment of SPE, measuring 35km, will traverse north to south of Kuala Lumpur and will serve areas such as Universiti Tunku Abdul Rahman, Wangsa Maju, Setiawangsa, Ampang, the Tun Razak Exchange & Bandar Malaysia development corridor, and Kerinchi.

Under the concession agreement, Ekovest will provide training and career opportunities to suitable young graduates/professional.

“In this respect, our holding company, Ekovest, is in the midst of launching a graduate training programme which will provide career opportunities and on-the-job training to young Malaysian graduates/professionals in various fields such as engineering, architecture, quantity surveying and finance,” it said.

Ekovest also said SPE will be the first expressway in Malaysia to be designed to cater for a full electronic tolling system and is envisaged to use the multi-lane free flow system upon its opening in 2020.

Ekovest’s share price rose 5 sen or 4.17% to RM1.25 yesterday on some 1.24 million shares done.

— THE SUN

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