Concession terms for West Coast Expressway announced
BernamaPublished: Jan 11, 2013 5:39 AM | Updated: Jan 11, 2013 6:56 AM
Kumpulan Europlus Bhd announced key concession terms in relation to the West Coast Expressway project, which involves the development of a highway from Banting, Selangor, to Taiping, Perak, with a tolled highway.
Kumpulan Europlus Bhd announced key concession terms in relation to the West Coast Expressway project, which involves the development of a highway from Banting, Selangor, to Taiping, Perak, with a tolled highway.
Kumpulan Europlus' 80 percent subsidiary to West Coast Expressway Sdn Bhd had, on Jan 2, 2013, entered into a concession agreement with the government for the project, valued at RM6 billion for a period of five years.
In a filing to Bursa Malaysia, Kumpulan Europlus said among the agreed key terms are that the concession period will be extended for another 10 years, if the agreed targeted internal rate of return (IRR) is not achieved.
"The project is a build-operate-transfer project with a concession period of 50 years, and the calculation of actual IRR will be in 49 years," it said.
The government has agreed to provide a government support loan (GSL) at an interest of four percent per annum, capitalised annually, and subject to a separate negotiation and agreement to be executed with the Finance Ministry.
"During the GSL tenure, 70 percent of the excess revenue will be utilised as repayment or as pre-repayment of the GSL.
However, it said that if the actual IRR is more than the targeted IRR, the revenue will be shared on a 70:30 basis between the government and West Coast Expressway.
The land acquisition cost for the project will be borne by the government, while the construction works will be implemented by West Coast Expressway through a tender committee, it added.
- Bernama
Kumpulan Europlus' 80 percent subsidiary to West Coast Expressway Sdn Bhd had, on Jan 2, 2013, entered into a concession agreement with the government for the project, valued at RM6 billion for a period of five years.
In a filing to Bursa Malaysia, Kumpulan Europlus said among the agreed key terms are that the concession period will be extended for another 10 years, if the agreed targeted internal rate of return (IRR) is not achieved."The project is a build-operate-transfer project with a concession period of 50 years, and the calculation of actual IRR will be in 49 years," it said.
The government has agreed to provide a government support loan (GSL) at an interest of four percent per annum, capitalised annually, and subject to a separate negotiation and agreement to be executed with the Finance Ministry.
"During the GSL tenure, 70 percent of the excess revenue will be utilised as repayment or as pre-repayment of the GSL.
However, it said that if the actual IRR is more than the targeted IRR, the revenue will be shared on a 70:30 basis between the government and West Coast Expressway.
The land acquisition cost for the project will be borne by the government, while the construction works will be implemented by West Coast Expressway through a tender committee, it added.
- Bernama
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