KUALA LUMPUR (Jan 26): KUMPULAN EUROPLUS BHD []’s subsidiary West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.
It said on Thursday the 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession.
“The land acquisition cost of up to RM980 million for the project will be borne by the government of Malaysia,” it said in a statement to Bursa Malaysia.
KEuro said WCE, a 64.2% subsidiary, had received an approval letter dated Jan 26 from the Public Private Partnership Unit of the Prime Minister’s Department to build the West Coast Expressway.
“To enhance the viability of the project, a government support loan of RM2.24 billion, commencing from year 2013 at an interest rate of 4% per annum, and an interest subsidy, of up to 3% from commercial loans for a period of 22 years, will be granted to WCE,” it said.
KEuro said toll revenue in excess of an agreed traffic volume would be shared on the basis of 70:30 between the government of Malaysia and WCE till full settlement of the government support loan and subsequently 30:70 after the loan is settled.
It also said the CONSTRUCTION [] works of the project would be implemented by WCE through open tender.
It said on Thursday the 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession.
“The land acquisition cost of up to RM980 million for the project will be borne by the government of Malaysia,” it said in a statement to Bursa Malaysia.
KEuro said WCE, a 64.2% subsidiary, had received an approval letter dated Jan 26 from the Public Private Partnership Unit of the Prime Minister’s Department to build the West Coast Expressway.
“To enhance the viability of the project, a government support loan of RM2.24 billion, commencing from year 2013 at an interest rate of 4% per annum, and an interest subsidy, of up to 3% from commercial loans for a period of 22 years, will be granted to WCE,” it said.
KEuro said toll revenue in excess of an agreed traffic volume would be shared on the basis of 70:30 between the government of Malaysia and WCE till full settlement of the government support loan and subsequently 30:70 after the loan is settled.
It also said the CONSTRUCTION [] works of the project would be implemented by WCE through open tender.
