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Wednesday, 18 January 2017

(The Star) Ekovest unit to undertake road project worth RM6bil

PETALING JAYA: Ekovest Bhd’s subsidiary will undertake the construction of 72.5km of roads in Kuala Lumpur, which will link with the various expressways at a total project cost of RM6.32bil.
It said that Lebuhraya DUKE Fasa 2A (LDF2A) has received a letter from the Government on the principle approval of the proposed privatisation of the Kampung Baru link, Istana link and Kapar link expressway.
“With a total length of 75.2km, the proposed project is expected to provide vital connectivity and direct linkage for movement in and around Kuala Lumpur City Centre and completes the missing link for seamless travelling in and out of Greater Kuala Lumpur and the Klang Valley,” the infrastructure company said.
Ekovest said the estimated total project cost of RM6.32bil (excluding the goods and services tax) for the proposed project was expected to be financed via a combination of internally generated funds, borrowings and/or other fund-raising exercises.
It said the proposed project was subject to further terms and conditions to be negotiated between the Government and LDF2A.
“The principle approval by the Government shall not in any way be considered as binding upon the Government until the execution of the relevant agreement between the Government and LDF2A,” it said.
Ekovest has attracted investors with its plan to make a special payout to shareholders of up to RM244mil, or 25 sen a share.
Ekovest has hogged the headlines since it announced its intention to dispose of a 40% stake in phases one and two of the Duta-Ulu Kelang Expressway (Duke) to the Employees Provident Fund (EPF) for RM1.13bil.
It was reported last month that the deal had valued Duke at RM2.8bil. The disposal is expected to be completed in the first quarter of this year.
Of the sum, RM921mil will be paid in cash by the EPF, with the rest to be placed in an interest-bearing account.
A sum of RM60mil will be paid when Duke’s phase two is expected to be completed in the first quarter of this year.
Phase two of Duke will see its length being increased to 34km.
In a December 2016 report, it had said that the stake sale was in line with the company’s strategy to monetise its mature infrastructure assets, and help allocate more funds to its infrastructure division expansion and other core businesses such as construction and property.

Ekovest went up 3.7% or nine sen to RM2.52 at the end of trading yesterday.